MRS Oil Nigeria 2016 Financial Summary

12 Months Report MRS OIL NIGERIA PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	109,635,054	87,099,216	26%	December
Profit/Loss before taxation	2,287,347	1,460,843	57%
Profit/Loss for the period	1,465,905	935,625	57%
Issued Shares (Units)	253,988,672	253,988,672
Basic Earnings Per Shares (Kobo)	577.00	368.00	57%
Last total dividend paid (Kobo)	173.00	110.00	57%

Quarter on Quarter Performance

Revenue                                                                         PAT

          N'000                                                                  N'000

Q1: #25,071,122                                                   Q1: #363,363

Q2: #28,705,903                                                   Q2: #546,383

Q3: #28,558,299                                                   Q3: #260,553

Q4: #27,299,730                                                   Q4: #295,606

MRS maintained an average of #27,408,764,000 in terms of revenue, while it maintained an average of #366,476,000 in terms of Earnings. The Q2 was outstanding for the company as it benefited immensely from the upward review of petroleum products by the FG. 

A closer look at the company's financials revealed the following:

Trade and other receivables: 

Long term receivables increased by 28,630.14% from 1,211,000 to 347,922,000

Short term receivables increased by 99.98% from 20,519,974,000 to 43,244,878,000. The major contributor to this are the petroleum support fund of #12,229,750,000 and Advance to supplier of #375,628,000.

Finance Income

This one declined by 63% from #1,730,525,000 to #633,588,000 the major distinction happened to be the reimbursement on interest on foreign exchange differential by PPPRA of #1,354,914,000 present in 2015 result. The removal of subsidy is changing the landscape of this major marketers.

Segment Performance

The Automotive Gasoil (AGO) popularly known as diesel remains the most lucrative in 2016. its revenue  increased by 263% from #3,655,599 to 13,264,504,000 so is the profit. Dual Purpose Kerosene (DPK) its revenue increased by 360% from #1,862,233,000 to #8,571,362,000. 

MRS had silently shown consistency in the past five years, attested to by its earning that had been growing, from 81k in 2012 to 577k in 2016. This is a CAGR of 63%. I think the market should pay attention to this. Aside earnings, the Net Asset value par share is 8,726kobo, this further buttress my point  above.

I belief the Market would embrace the result and the stock should enjoy a bullish run when the Market open on Monday 27th March, 2017 with a dividend yield of 4.43% which is above the Market yield. Although, the Major challenge would be liquidity as 70.27% of the stock is held by two investors that are not trading on it. They are MRS Africa Holding and First Pension Custodian/Amcon

Corporate Action

Dividend (Final-Proposed): 173kobo per share

Dividend (Total): 173 kobo per Share

Qualification Date June 23, 2017

Closure of Registrar (Dividend) : June 26 to June 30 ( Both dates Inclusive)

AGM Date: July 25, 2017

Payment Date: July 26, 2017