MRS, majority owned by Dangote’s half-brother Sayyu Dantata, rakes in $203 million revenue

Key Points

• MRS Oil Nigeria’s revenue surged to $203 million in 2024, driven by strong fuel sales across PMS, AGO, ATK, and lubricants.
• Despite rising expenses, net profit climbed 60% to $4.23 million, boosting earnings per share from $0.00769 to $0.0123.
• Shareholders approved MRS Oil’s delisting from NGX to NASD OTC, with a buyout offer for dissenting investors pending regulatory approval.

MRS Oil Nigeria Plc, a leading oil marketing company majority-owned by Sayyu Dantata, half-brother to Africa’s richest man, Aliko Dangote, posted strong financial results for 2024, with revenue climbing to $203 million for the fiscal year ended Dec. 31.

MRS Oil revenue surges on fuel sales

According to its recently published annual report, the company’s revenue jumped from N182.31 billion ($118.8 million) in 2023 to N312.23 billion ($203.4 million) in 2024. The growth was driven by a surge in the sales of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Aviation Turbine Kerosene (ATK), and lubricants.

Higher operating expenses did little to slow down profit growth. MRS Oil’s net profit rose from N4.05 billion ($2.64 million) in 2023 to N6.5 billion ($4.23 million) in 2024, boosting earnings per share from N11.81 ($0.00769) to N18.95 ($0.0123).

MRS Oil strengthens West African presence

Operating across several West African markets, including Benin, Togo, Cameroon, and Côte d’Ivoire, MRS Oil distributes refined petroleum products, blends lubricants, and manufactures greases. The company ranks 50th on the Nigerian Exchange (NGX), where its stock remains a draw for investors.

Dantata, the company’s majority shareholder with a 60-percent stake (205,730,806 shares), is also one of the wealthiest investors on the NGX. Through MRS Africa Holdings, he has built a strong presence in the oil and gas sector. His half-brother, Aliko Dangote, is the founder of the Dangote Group, Africa’s most diversified manufacturing and industrial conglomerate.

MRS Oil’s assets nearly double in 2024

MRS Oil’s solid performance strengthened its financial position. Total assets nearly doubled from N54.83 billion ($35.7 million) in Dec. 2023 to N105.8 billion ($68.9 million) a year later. Liabilities also rose, from N32.22 billion ($21 million) to N75.73 billion ($49.4 million), while retained earnings increased from N22.44 billion ($14.6 million) to N28.14 billion ($18.3 million).

Following its record-breaking results, MRS Oil Nigeria plans to delist from the NGX and move to the NASD OTC Securities Exchange. Shareholders approved the move at an extraordinary general meeting on June 25, 2024. In line with NGX regulations, the company will buy out shareholders who were absent or opposed the decision, subject to final approval from the Securities and Exchange Commission and NGX.