Despite having to weather a combination of economic and socio-political challenges in 2013, MRS Oil Nigeria plc recorded a significantly improved performance in the year.
Year-on-year performance comparison shows that profit before tax significantly increased by 250 percent in 2013, from N400 million in 2012, to N1.4 billion. Also profit after tax witnessed the same significant improvement from N200 million in 2012, to N600 million in 2013, reflecting increase of 200 percent.
The company recorded a turnover of N87.8 billion in 2013, against N79.7 billion in 2012, which translates to a 10 percent increase.
This improvement in turnover was spurred by increase in premium motor spirit (PMS) and automotive gas oil (AGO) sales resulting from the implementation of strategic initiatives aimed at capturing market share, the company said.
Expenses which include selling and distribution expenses, administrative expenses and net finance cost stood at N4 billion in 2013 representing a decrease of 37 percent of N6.3 billion in 2012 occasioned by Petroleum Products Pricing Regulatory Agency (PPPRA) reimbursement on interest and foreign exchange differential cost claims.
Total comprehensive income for the year stood at N600 million in 2013 as against N200 million in 2012, translating to an increase of 200 percent.
In 2013, N901 million was expended on capital items, against N340 million in 2013, which translates to a 165 percent increase. The addition in 2013 cut across land and building, plant and machinery, computer and office equipment and automotive equipment, according to the company.
Sayyu Dantata, chairman, MRS Oil, commenting on the outlook for 2014, at the company’s annual general meeting on recently, said: “In the fiscal space, the outlook remains bright as oil prices are expected to maintain their high levels given the gradual recovery of major oil consumers like the US and China from the impact of the recent global financial crisis, thereby pushing up crude oil demand.
“The passage of the Petroleum Industry Bill (PIB) in 2014 will usher the sector into another growth path. I see. Possible removal of subsidy; post 2015 elections which will increasingly bring about more competition and firm repositioning in the downstream oil and gas sector.”
MRS Oil is a fully integrated and efficient downstream player with leading position in the Nigerian oil industry.
(Businessday)
