MRS Oil Nigeria Plc, a leading oil marketing company majority-owned by billionaire businessman Sayyu Dantata, half-brother to Africa’s richest man Aliko Dangote, is poised for another strong year after first-quarter revenue surged above $60 million.
Revenue for the first three months of 2024 climbed to N79.16 billion ($62.6 million), up from N30.78 billion ($23.83 million) in the prior-year period, according to the company’s recently released financial statements. This follows MRS Oil Nigeria’s announcement seeking shareholder approval to delist from the Nigerian Exchange (NGX).
PMS sales drive profit surge
The triple-digit revenue increase was driven by a surge in both the price and demand for Premium Motor Spirit (PMS). The company’s PMS revenue jumped to N70.2 billion ($54.35 million) in Q1 2024 from N24.7 billion ($19.45 million) in Q1 2023. Consequently, first-quarter profit rose to N1.99 billion ($1.54 million) from N1.47 billion ($1.14 million) a year earlier.
The company’s financial position also strengthened. Retained earnings increased modestly, rising from N22.44 billion ($17.37 million) at the start of the year to N24.43 billion ($18.91 million) as of March 31. Shareholder equity climbed to N24.6 billion ($19.05 million) from N22.6 billion ($17.5 million).
Nigerian oil leader MRS makes NGX top 50
MRS Oil Nigeria, operating across Benin, Togo, Cameroon, and Côte d’Ivoire, holds the 48th position on the Nigerian Exchange (NGX), underscoring its regional significance.
Sayyu Dantata, a leading businessman and majority shareholder in MRS Oil Nigeria with a 60-percent stake (205,730,806 shares), is the half-brother of Aliko Dangote, founder and chairman of Dangote Group, Africa’s most diversified manufacturing and industrial conglomerate. Through MRS Africa Holdings, Dantata ranks as one of the wealthiest investors on the NGX.
MRS Oil Nigeria considers delisting from NGX
The company’s board of directors recently announced plans to delist its shares from the NGX following a strategic review. This decision considered factors such as regulatory burdens, administrative costs, emerging market opportunities, and the company’s long-term goals.
With 342,884,706 ordinary shares outstanding, MRS Oil Nigeria believes delisting will enhance operational flexibility, facilitate strategic partnerships, and reduce overall costs, ultimately strengthening its competitive position.
The proposed delisting process is likely to involve a share buyback and capital reduction. Upon successful delisting, the board intends to seek shareholder approval to list the company’s shares on the NASD OTC Securities Exchange.
