- MRS Oil Nigeria Plc reported a 71.2% increase in revenue for 2024, which was driven by higher fuel prices despite a drop in sales volumes.
- The company expects continued growth as the Dangote Refinery increases output, reducing Nigeria’s reliance on imported fuel.
MRS Oil Nigeria Plc has released its audited financial results for 2024. The company reported a 71.2% increase in revenue, reaching ₦312.2 billion. This growth was driven by higher petroleum product prices, even though sales volumes declined during the year.
MRS Oil has benefited from strong consumer demand after purchasing products from the Dangote Refinery. Many customers believe these products are of higher quality and offer better fuel efficiency.
The company also reported a pre-tax profit of ₦9.8 billion, a 66% increase from the previous year. However, rising sales costs have continued to put pressure on its profit margins.
MRS Oil reported that fuel price increases following the sector’s full deregulation negatively affected sales volumes. Many independent marketers struggled to raise the working capital needed to stay in business.
The company also observed increased competition in the downstream oil sector. Marketers now have more options between importing fuel or purchasing locally refined products.
On the supply side, MRS Oil highlighted that the Dangote Refinery’s production has reduced Nigeria’s dependence on imported petroleum products. The company expects this trend to continue as the refinery reaches full production capacity.
With Nigeria working toward self-sufficiency in refined petroleum products, MRS Oil is adjusting its strategy. The company aims to maintain its recent gains and strengthen its position in the evolving market.
Most of MRS Oil’s revenue came from the sale of petroleum products, including Premium Motor Spirit (PMS), diesel, aviation fuel, lubricants, and Liquefied Petroleum Gas (LPG). PMS Sales were at ₦272.4 billion (+68.4%). AGO (Diesel) and Aviation Fuel Sales recorded ₦30.5 billion combined
The company operates on thin profit margins, meaning it relies on high sales volumes to remain profitable. For every N100 worth of PMS sold, MRS Oil retained just ₦9 as profit.
In 2024, PMS and AGO accounted for 92% of total revenue and 94.6% of gross profit. This slightly differs from 2023, when they contributed 94% and 93%, respectively.
MRS Oil follows a conservative financial strategy and does not have external debt. Instead, it funds operations through trade payables and related-party financing. The company sourced ₦27.1 billion from affiliated entities to support its business activities.
MRS Oil is preparing for Nigeria’s shift toward local petroleum production. The company plans to keep improving its market position and maximizing opportunities in the industry. With rising fuel prices and changing competition, it aims to remain strong in the evolving energy sector.