MRS Oil Nigeria Plc, a Lagos-based oil marketing company, posted N1.26 billion losses after taxation for the period ended December 31, 2018, its first losses since 2012, driven by a huge decline in income tax credit.
Although the oil firm posted N996.6 million losses before taxation in FY 2017, it still recorded an after-tax profit of N1.38 billion, thanks to N2.38 billion tax credit received. However, the reverse is the case in FY 2018.
The company reported N1.43 billion and N1.26 billion losses before and after taxation in FY 2018, triggered by 93 percent decline in income tax credit to N162.51 million compared with N2.38 billion earned in the previous period, culminating to N4.15 loss per share in the review period.
Revenue for FY 2018 stood at N89.5 billion, indicating a 16.37 percent decline over N107.09 billion earned in the previous period. Analysis of revenue by category revealed that proceeds from all products dip in the review period.
Receipts from Premium Motor Spirit (PMS) dip 0.9 percent, Aviation Turbine Kerosene (ATK) down by 30.8 percent, and that of Automotive Gas Oil, lubricants & greases and Dual Purpose Kerosene (DPK) slumped by 44 percent, 17 percent, and 43 percent respectively.
Proceeds realized from other sources in FY 2018 grew in triple-digit to N375.2 million from N150.9 million in FY 2017, buoyed by a big increase in income on storage services.
The company posted no substantial improvement in cost efficiency as cost-of-sales to revenue ratio, which measures the efficiency of sales operations, worsened to 95 percent in FY 2018 compared with 92 percent in the previous period.
Moreover, total expenses (selling, distribution & administration), declined 10 percent to N6.26 billion in the review period as against N7.01 billion in FY 2017.
Meanwhile, Chris Okorie, Group Executive Director of MRS Holding, joined the Board of MRS Oil Nigeria Plc, as Director, following the Board’s approval at its meeting on Thursday, March 28, 2019.
The new Director has more than 16 years’ experience in Total Nigeria Plc, where he held the position of Strategy Manager and Project Leader among other responsibilities.
Total assets of the oil marketer were down by N2.2 billion to N54.3 billion in the review period compared with N58.5 billion in FY 2017. Total equity slumped 10 percent to N20.7 billion in FY 2018, while total liabilities reduced by single-digit to N33.5 billion.
MRS has been trading flat at N20.85 per share on the Lagos bourse close to two months, losing 19 percent year-to-date, and its one-year return down by 26 percent.
The company distributes and markets refined petroleum products and fuels, and also blends lubricants and manufacturing greases.
ISRAEL ODUBOLA
