Oil
MRS reports 66.7% profit drop
LAGOS – Leading oil marketing company, MRS Oil Nigeria, saw its profit after tax drop by 66.7 percent for the year ended 31st December, 2013, according to a financial statement it filed with the Nigerian Stock Exchange, NSE.
The statement indicated that while revenue grew by 11.5 percent to N79.72 billion from N71.49 billion in 2011, profit after tax fell to N205.121 million from N615.624 million – a 66.7 percent slump.
Also, profit before tax fell by 73.2 percent, from N1.413 billion in 2011 to N378.755 million in the year under review.
Gross profit at N5.71 billion showed a 16.3 percent decrease, from N6.822 billion in the previous year.
The company’s selling and distribution expenses grew 28.8 percent, from N996.307 million in 2011 to N709.67 million.
Cost of sales moved up 14.5 percent to N74.015 billion as against N64.67 billion in the preceding period of 2011, according to the financial statement, which also indicated that the company’s board of directors has approved payment of N23.34 kobo dividend to shareholders.
This amounts to about N59.28 million gross dividends and would be paid on August 15, if approved by members of the company.
But, only investors whose names are on the register of company as at July 19, 2013 will benefit from the dividend.
With the release of the company’s financials, huge movement was recorded in the stock as it rose maximally by 10 percent within the day, which analysts attributed to huge institutional trading.
MRS recorded a year high share price at N29.00 on February 12, 2013 with YTD price appreciation of 22.05 percent, following the impressive rally experienced in the preceding year.
Investors had sold-down consistently between February 12 and May 15 2013, depleting the YTD performance to 24.24 percent, while the stock remained at an all-time-low of N18.00.
“Technical indicators (MACD) however points out that there is an improved bargain tendency towards the stock, with a growing appetite as the stock has stepped out of the bearish zone to close neutral in short term, indicating investors are willing to pay higher to acquire the stock in the near term,” said analysts at Proshare.
At present, about 23,551 Nigerian shareholders and one foreign shareholder, MRS Africa Holdings Limited, Bermuda, hold about 253.99 million shares in MRS Oil Nigeria Plc.
A major player in Nigeria’s petroleum products marketing industry, MRS Oil Nigeria Plc boasts about 138 active company-owned operating outlets and more than 255 third party owned operating outlets.
The Company is principally engaged in the business of marketing and distribution of refined petroleum products, blending of lubricants and manufacturing of greases.
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.