MRS Oil Nigeria Plc has reported a pre-tax profit of N3.076 billion for the Q1 ended March 31, 2024, representing 58.34% year-on-year (YoY) increase.
According to the company’s 2024 Q1 financial statements, MRS Oil reported an impressive revenue of N79.160 billion, marking 157.11% increase from the N30.788 billion reported the year prior.
Premium Motor Spirits (PMS) continues to drive the company’s revenue, accounting for 88.7% of total revenue.
Key highlights (Q1 2024 vs Q1 2023)
Additionally, net foreign exchange losses and administrative expenses remained elevated, contributing to the overall costs.
The implication is that should costs continue to outpace revenue growth, it could potentially result in a decline in profitability in the future.
Already, the decrease in net profit margin to 2.51% in Q1 2024 from 4.79% in Q1 2023 indicates a decline in profitability.
Notwithstanding, in relative terms, the performance of MRS Oil is strong. Importantly, the company’s stock has exhibited bullish momentum, surpassing its earnings. In 2023, it achieved an impressive year-to-date gain of 645%, and this year it has seen a 28.6% year-to-date increase, ranking it as the 23rd best-performing stock on the NGX in terms of year-to-date performance.