MRS OIL: DETAILED STOCK ANALYSIS
OVERVIEW OF MRS OIL NIGERIA PLC: MRS Oil Nigeria is a prominent player in the Nigerian oil and gas industry, primarily focused on the refining and marketing of petroleum products. It is listed on the Nigerian Stock Exchange (NGX) under the ticker symbol MRS. MRS Oil currently ranks as the 49th most valuable stock on the NGX, with a market capitalization of NGN 45.5 billion, representing approximately 0.081% of the Nigerian equity market.
Shares Outstanding: 343 million
Current Share Price (as of October 9, 2024): NGN 132.70
Year-to-Date Performance: MRS Oil started the year at NGN 105.00 per share, representing a 26.4% increase as of its last trading day, ranking 52nd in terms of performance on the NGX for 2024.
Q2 2024 FINANCIAL SUMMARY:
Revenue: N82.813 billion (186.94% YoY increase)
Cost of Sales: N76.265 billion (220.96% YoY increase)
Gross Profit: N6.548 billion (28.42% YoY increase)
Impairment Loss on Financial Assets: N962 million (92.61% YoY increase)
Administrative/Selling & Distribution Expenses: N2.300 billion (91.87% YoY increase)
Pre-tax Profit: N3.411 billion
Operating Profit: N3.351 billion
Profit After Tax (PAT): N2.228 billion
Earnings Per Share (EPS): N6.50
Total Assets: N65.083 billion
PERFORMANCE AND MARKET POSITION: MRS Oil Nigeria Plc has demonstrated robust financial performance despite industry challenges. The gross profit margin in Q2 2024 was 7.91%, a decrease compared to the previous year, attributed to rising operational costs. However, the company remains a critical player in Nigeria’s downstream oil sector, with a well-established network of retail outlets and a diverse portfolio that includes lubricants and greases.
DIVIDEND HISTORY: The company has a consistent dividend-paying history. In 2024, the most recent dividend was 2.36 NGN per share, yielding 1.78% annually. The ex-dividend date was July 1, 2024, and the dividend was paid on August 2, 2024.
SWOT ANALYSIS:
Strengths:
- Strong market presence with an expansive retail network
- Diversified product offerings (including lubricants and greases)
Weaknesses:
- Narrow profit margins due to rising costs
- Reliance on the Nigerian market, which is subject to volatility
Opportunities:
- Expansion into new markets
Increased demand for petroleum products globally
THREATS:
- Regulatory and environmental challenges
- Intense competition in the oil and gas sector
RECENT DEVELOPMENTS:
1. Profit Growth: MRS Oil reported a significant 272% increase in after-tax profit to N4.89 billion for the year ended December 2023.
2. Delisting Plans: Shareholders approved a proposal to delist the company from the Nigerian Exchange Limited.
3. Stock Performance: The stock has gained 645% year-to-date as of 2024, reflecting strong investor confidence.
OUTLOOK AND RECOMMENDATIONS: Though there is limited analyst coverage of MRS Oil, the company's solid financial performance and positive market trends indicate potential for future growth. Investors should closely monitor upcoming earnings reports and market movements, with a cautious approach recommended due to the narrow profit margins.
OVERVIEW OF MRS OIL NIGERIA PLC: MRS Oil Nigeria is a prominent player in the Nigerian oil and gas industry, primarily focused on the refining and marketing of petroleum products. It is listed on the Nigerian Stock Exchange (NGX) under the ticker symbol MRS. MRS Oil currently ranks as the 49th most valuable stock on the NGX, with a market capitalization of NGN 45.5 billion, representing approximately 0.081% of the Nigerian equity market.
Shares Outstanding: 343 million
Current Share Price (as of October 9, 2024): NGN 132.70
Year-to-Date Performance: MRS Oil started the year at NGN 105.00 per share, representing a 26.4% increase as of its last trading day, ranking 52nd in terms of performance on the NGX for 2024.
Q2 2024 FINANCIAL SUMMARY:
Revenue: N82.813 billion (186.94% YoY increase)
Cost of Sales: N76.265 billion (220.96% YoY increase)
Gross Profit: N6.548 billion (28.42% YoY increase)
Impairment Loss on Financial Assets: N962 million (92.61% YoY increase)
Administrative/Selling & Distribution Expenses: N2.300 billion (91.87% YoY increase)
Pre-tax Profit: N3.411 billion
Operating Profit: N3.351 billion
Profit After Tax (PAT): N2.228 billion
Earnings Per Share (EPS): N6.50
Total Assets: N65.083 billion
PERFORMANCE AND MARKET POSITION: MRS Oil Nigeria Plc has demonstrated robust financial performance despite industry challenges. The gross profit margin in Q2 2024 was 7.91%, a decrease compared to the previous year, attributed to rising operational costs. However, the company remains a critical player in Nigeria’s downstream oil sector, with a well-established network of retail outlets and a diverse portfolio that includes lubricants and greases.
DIVIDEND HISTORY: The company has a consistent dividend-paying history. In 2024, the most recent dividend was 2.36 NGN per share, yielding 1.78% annually. The ex-dividend date was July 1, 2024, and the dividend was paid on August 2, 2024.
SWOT ANALYSIS:
Strengths:
- Strong market presence with an expansive retail network
- Diversified product offerings (including lubricants and greases)
Weaknesses:
- Narrow profit margins due to rising costs
- Reliance on the Nigerian market, which is subject to volatility
Opportunities:
- Expansion into new markets
Increased demand for petroleum products globally
THREATS:
- Regulatory and environmental challenges
- Intense competition in the oil and gas sector
RECENT DEVELOPMENTS:
1. Profit Growth: MRS Oil reported a significant 272% increase in after-tax profit to N4.89 billion for the year ended December 2023.
2. Delisting Plans: Shareholders approved a proposal to delist the company from the Nigerian Exchange Limited.
3. Stock Performance: The stock has gained 645% year-to-date as of 2024, reflecting strong investor confidence.
OUTLOOK AND RECOMMENDATIONS: Though there is limited analyst coverage of MRS Oil, the company's solid financial performance and positive market trends indicate potential for future growth. Investors should closely monitor upcoming earnings reports and market movements, with a cautious approach recommended due to the narrow profit margins.