2024: MRS reports profit of N3.410bn in second quarter 

MRS Oil Nigeria Plc has reported a pre-tax profit of N3.410 billion for the second quarter of financial year ended June 30, 2024.

The amount represents 190.95 per cent year-on-year (YoY) growth from N1.172 billion reported the same period of 2023.

The company posted profit after tax of N2.227 billion after payment of income tax of N1.183 billion  from profit of N835.304 million after tax payment of  N337,014.

The company’s second quarter 2024 unaudited financial result submitted at the Nigerian Exchange (NGX) showed that, MRS Oil reported impressive revenue of N82.813 billion, indicating a 186.94 per cent year-on-year increase from the N28.880 billion recorded the previous year and a 4.62 per cent rise compared to first quarter of 2024.  

The performance of the company for the period brings the half-year revenue to N161.973 billion, a surge of N102.324 billion or 171.55 per cent compared with N59.648 billion recorded in the preceding year.

Despite the significant revenue increase, the rising cost of sales has outpaced revenue growth, leading to moderated gross profit growth and a shrinking margin. 

In second quarter of 2024, the gross profit margin fell by 55.25 per cent  Year on Year to 7.91 per cent, indicating the impact of the rising costs, resulting in reduced profitability of the company.

Analysis of the company result for the second quarter showed that operating profit stood at N3.351 billion at the end of June from N1.167 recorded in the same period of 2023, representing a surge of N2.184 billion or 187.15 per cent.

Finance income stood at N92.367 million against N35.632 million in 2023 , finance cost went up to N31.033 million from N4.598 million bringing net finance costs to N59.612 million against N4.598 million.

Financial analysts said that the company needs to look inward and  adopt cost management measures to enable the company sustain growth in all their financial indices.

They said that adopting cost management will bring more opportunity for higher profitability at the end of 2024 financial year.

The company has also  set  revenue target of of N170.340 billion for the third quarter of , surpassing the half-year 2024 actual revenue by more than five per cent