MRS Oil Declares 20% Bonus Shares on N2.38b Tax Credit

  • MRS Oil Declares 20% Bonus Shares on N2.38b Tax Credit

Shareholders of MRS Oil Nigeria Plc will receive a 20 per cent increase in their shares after the board of the oil-marketing company decided to distribute bonus shares on the back of a N2.38 billion tax gain.

Its board stated that it has recommended distribution of bonus issue of one new ordinary share for every five ordinary shares held by shareholders as at the close of business on July 6, 2018. This implies distribution of 50.8 million ordinary shares to shareholders. After the listing, the bonus issue will increase MRS Oil Nigeria’s issued share capital from 253.99 million ordinary shares of 50 kobo each to 304.789 million ordinary shares of 50 kobo each.

Key extracts of the audited report and accounts of MRS Oil Nigeria for the year ended December 31, 2017 showed that the company struggled with poor sales and declining margin during the year, ending the year with a pre-tax loss of N996.61 million. However, a tax write-back or gain of N2.38 billion in 2017 boosted the company’s net profit to N1.39 billion.

The report showed that turnover dropped marginally from N109.64 billion in 2016 to N107.09 billion in 2017. Profit before tax reversed from N2.29 billion in 2016 to a loss of N996.61 million in 2017. Tax gain stood at N2.38 billion in 2017 as against tax provisions of N821.44 million in 2016. With these, net profit stood at N1.39 billion in 2017 as against N1.47 billion in 2016. Earnings per share stood at N5.45 in 2017 compared with N5.77 in 2016.

Formerly known as Chevron/Texaco Oil Nigeria Plc, MRS Oil Nigeria is owned by more than 24,000 shareholders. One of the major downstream oil companies, MRS Africa Holdings Limited (Bermuda) holds 60 per cent majority equity stake in MRS Oil Nigeria while Asset Management Corporation of Nigeria (AMCON) holds 10.47 per cent. Sundry Nigerian individuals and institutions hold the remaining 29.53 per cent equities.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]; Tel: +2347065163489.

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