MRS OIL NIGERIA : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

MRS Oil Nigeria Plc

2024 1st Quarter Financial Statements For the period ended 31 March 2024

MRS Oil Nigeria Plc.

Financial Statements - 31 March 2024

Contents	Page
Corporate information	2
Statement of directors' responsibilities	3
Statement of profit or loss and other comprehensive income	4
Statement of financial position	5
Statement of changes in equity	6
Statement of cash flows	7
Notes to the financial statements	8

MON Plc. Q1, 2024 - 1

MRS Oil Nigeria Plc.

Financial Statements- 31 March 2024

Corporate information

RC 6442
Board of directors	Mr. Patrice Alberti	Chairman
	Mr. Marco Storari	Managing Director
	Ms. Amina Maina	Non Executive Director
	Mr. Matthew Akinlade	Independent Director
	Sir. Sunday Nnamdi Nwosu	Non Executive Director
	Chief Sir Amobi Daniel Nwokafor	Non Executive Director
	Mrs Priscilla Ogwemoh	Non Executive Director
Registered office	2, Tincan Island
	Apapa
	Lagos
Company secretary	Mrs. O.M. Jafojo
	2, Tincan Island
	Apapa
	Lagos
Registrar	First Registrars and Investor Services Limited
	Plot 2, Abebe Village Road,
	Iganmu Lagos
	PMB 12692 Marina
	Lagos
Auditor	Deloitte & Touche
	Civic Tower
	Ozumba Mbadiwe Road
	Victoria Island
	Lagos
Principal bankers	Access Bank Plc
	Fidelity Bank Plc
	First Bank of Nigeria Limited
	First City Monument Bank Plc
	Polaris Bank Limited
	Standard Chartered Bank Nigeria Limited
	Stanbic IBTC Bank Plc
	Sterling Bank Plc
	Union Bank of Nigeria Plc
	Unity Bank Plc
	Wema Bank Plc
	Zenith Bank Plc
Leadership team
	Marco Storari	Dhikrullah Ameen-Ikoyi
	Managing Director	Treasury Manager
	Oluwakemi M. Jafojo	Mahmud Muhamed
	Company Secretary	Logistics Manager
	Samson Adejonwo	Nkem Fasanmi
	Chief Finance Officer	Supply Manager
	Donald Oghuma	Abdulrazak Suleiman
	Sales and Marketing Manager	Engineering Manager
	Sunday Oyekale	Olawale Badru
	Chief Internal Auditor	Chief Legal Counsel
	Salami Muideen	Col. Adebisi Adesanya
	Accounts Manager	Chief Security Officer
	Rita Agbasi
	Human Resources Advisor

MON Plc Q1,2024 - 2

MRS Oil Nigeria Plc.

Financial Statements - 31 March 2024

Statement of Directors' responsibilities in relation to the financial statements for the period ended 31 March 2024

The directors accept responsibility for the preparation of the financial statements that give a true and fair view in accordance with International Financial Reporting Standards and in the manner required by the Companies and Allied Matters Act,2020 and Financial Reporting Council of Nigeria Act, 2023.

The directors further accept responsibility for maintaining adequate accounting records as required by the Companies and Allied Matters Act, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.

The directors have made an assessment of the Company's ability to continue as a going concern and have no reason to believe the Company will not remain a going concern in the year ahead.

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:

Signature

Mr Marco Storari (Managing Director)

Name

FRC/2020/003/00000022083

FRC

25 April 2024

Date

Signature

Dr. Amobi D. Nwokafor (Director)

Name

FRC/2013/ICAN/00000002770

FRC

25 April 2024

Date

MON Plc Q1, 2024 -3

MRS Oil Nigeria Plc.

Financial Statements- 31 March 2024

Statement of Profit or Loss and Other Comprehensive Income for the period ended 31 March, 2024

	Notes
Revenues	5
Cost of sales	8
Gross profit
Other income	6
Administrative expenses	10
Selling and distribution expenses	9
Net foreign exchange loss	12a
Impairment loss on financial assets	30a
Operating profit
Finance income	11
Finance costs	11
Net finance costs	11
Profit before Taxation	12
Income tax expense	14b
Profit after tax
Other Comprehensive Income, net of income tax
Total comprehensive income for the period
Earnings per share
Basic and diluted earnings per share (Naira)	13

	31 Mar. 2024	31 Mar. 2023
	₦'000	₦'000
79,159,648	30,788,457
(73,548,066)	(26,977,012)
5,611,582	3,811,445
285,218	22,811
(1,937,146)	(1,191,510)
(243,973)	(314,096)
(495,057)	(156,925)
(208,270)	(206,221)
3,012,354	1,965,503
96,628	16,239
(32,754)	(38,935)
63,874	(22,696)
3,076,228	1,942,807
(1,085,801)	(467,677)
1,990,427	1,475,130
-	-
1,990,427	1,475,130
5.80	4.30

The accompanying notes on pages 8 to 51 form an integral part of these financial statements.

MON Plc Q1, 2024 -4

MRS Oil Nigeria Plc.

				Financial Statements- 31 March 2024
Statement of Financial Position
as at 31 March 2024
	Notes	31 Mar. 2024		31 Dec. 2023
		₦'000		₦'000
Assets
Non current assets
Property, plant and equipment	15	21,715,715	19,420,838
Right of use assets	29(i)	595,931	664,579
Intangible assets	16	206,800		227,803
Total non-current assets		22,518,446	20,313,220
Current Assets
Inventories	19	8,750,122	7,631,431
Withholding tax receivables	18	45,241	40,960
Prepayments	27	370,402	188,665
Trade and other receivables	17	11,427,661	20,749,480
Cash and cash equivalents	20	11,024,067		5,907,533
Total current assets		31,617,493		34,518,069
Total assets		54,135,939	54,831,289
Equity
Share capital	21(a)	171,442	171,442
Retained earnings	21(b)	24,430,216		22,439,789
Total equity		24,601,658	22,611,232
Liabilities
Non current liabilities
Employee benefit obligation	22(a)	9,326	8,523
Provisions	28	150,779	144,028
Lease liabilities	29(iii)	108,156	82,153
Deferred tax liabilities	14(e)	558,672		511,572
Total non-current liabilities		826,933	746,276
Current liabilities
Contract liabilities	23	6,191,569	5,835,729
Dividend payable	24(b)	103,691	104,569
Trade and other payables	25	17,570,076	21,730,172
Short term borrowings	26	1,411,105	1,411,105
Lease liabilities	29(iii)	472,568	472,568
Tax payable	14(d)	2,958,339		1,919,638
Total current liabilities		28,707,348	31,473,781
Total liabilities		29,534,281	32,220,057
Total equity and liabilities		54,135,939	54,831,289

Approved by the Board of Directors on 25 April 2024 and signed on its behalf by:

)Mr Marco Storari (Managing Director) FRC/2020/003/00000022083

) Dr. Amobi D. Nwokafor (Director) FRC/2013/ICAN/000000002770

) Mr. Samson Adejonwo(Chief Finance Officer) FRC/2020/001/00000021998

The accompanying notes on pages 8 to 51 form an integral part of these financial statements.

MON Plc Q1, 2024 -5

			MRS Oil Nigeria Plc.
			Financial Statements- 31 March 2024
Statement of Changes in Equity
for the period ended 31 March, 2024
	Share		Retained		Total
	capital		earnings		equity
	₦'000		₦'000		₦'000
Balance as at 1 January 2023	171,442	18,328,004	18,499,446
Total comprehensive income:
Profit for the period	-		1,475,130		1,475,130
Total comprehensive income for the period	-	1,475,130	1,475,130
Transactions with owners of the Company
Bonus issue transfer from Retained Earnings to Share Capital	-		-		-

Balance as at 31 March 2023

Balance as at 1 January 2024 Total comprehensive income:

Profit for the period

171,442	19,803,134	19,974,576

Share		Retained		Total
capital		earnings		equity
₦'000		₦'000		₦'000
171,442		22,439,789		22,611,232
-		1,990,427		1,990,427

Total comprehensive income	-		1,990,427	1,990,427
Transactions with owners of the Company
Write-back of statute barred dividend Note 24(b)	-		-	-
Total transactions with owners of the Company	-		-	-
Balance as at 31 March 2024	171,442		24,430,216		24,601,658

MON Plc Q1, 2024 -6

				MRS Oil Nigeria Plc.
		Financial Statements- 31 March 2024
Statement of Cash Flows for the year ended 31 March 2024
	Notes
	31 Mar. 2024		31 Mar. 2023
		₦'000		₦'000
Cash flows from operating activities:
Profit after tax		1,990,427	1,475,130
Adjustments for:
Depreciation on PPE	15	193,539	160,996
Depreciation on Right of Use Assets	29(i)	104,648	134,574
Amortisation of intangible assets	16	21,003	5,263
Finance income	11	(96,628)	(16,239)
Finance costs	11	32,754	38,935
(Gain)/Loss on sale of property, plant and equipment	6,10	-	(4,587)
Net foreign exchange loss	10	495,057	156,925
(Reversal of )/Provision for long service award	22(c)	804	804
Impairment/(Reversal) of Impairment loss on trade receivables	30(a)	208,271	112,024
(Reversal)/Impairment of Related party receivables	30(a)	-	94,197
Taxation	14	1,085,801		467,677
		4,035,676	2,625,700
Changes in:
- Inventories		(1,118,691)	(868,765)
- Trade, other receivables		9,242,169	(1,445,336)
- Prepayments		(181,737)	(40,258)
Contract liability(Customer Advance received)		355,840	1,100,615
- Trade and other payables		(4,786,397)		2,545,363
Cash generated from operations		7,546,860	3,917,317
Income taxes paid	14(d)	-	-
Long service award paid	22(c)	-		-
Net cash generated from operating activities		7,546,860	3,917,317
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment		-	6,611
Purchase of property, plant and equipment	15	(2,488,418)	(3,609,649)
Purchase of ROU assets	29(i)	(36,000)	-
Purchase of Intangible Assets	16	-	(22,161)
Interest received	11	96,628	16,239
Net cash used for investing activities		(2,427,790)	(3,608,960)
Cash flows from financing activities:
Additional short term borrowings	26	-	10,442,815
Short term borrowing repayment	26	-	(8,670,055)
Dividends paid	24	(878)	-
Interest paid	11	-		(15,370)
Net cash used in financing activities		(878)		1,757,389
Net change in cash and cash equivalents		5,118,192	2,065,747
Cash and cash equivalents at 1 January		5,907,533	3,216,445
Effect of movements in exchange rates on cash held		(1,658)	(73,569)
Cash and cash equivalents at 31 March 2024	20	11,024,067		5,208,624

The accompanying notes on pages 8 to 51 form an integral part of these financial statements.

MON Plc Q1, 2024 -7

MRS Oil Nigeria Plc.

Financial statements - 31 March, 2024

Notes to the financial statements

1. Reporting entity

The Company was incorporated as Texaco Nigeria Limited (a privately owned Company) on 12 August 1969 and was converted to a Public Limited Liability company quoted on the Nigerian Stock Exchange in 1978, as a result of the 1977 Nigerian Enterprises Promotions Decree. The Company is domiciled in Nigeria and its shares are listed on the Nigerian Stock Exchange (NSE). The Company's name was changed to Texaco Nigeria Plc. in 1990 and again on 1 September 2006 to Chevron Oil Nigeria Plc.

On 20 March 2009, there was an acquisition of Chevron Africa Holdings Limited, (a Bermudian Company) by Corlay Global SA of Moffson Building, East 54th Street, Panama, Republic of Panama. By virtue of this foreign transaction, Chevron Nigeria Holdings Limited, Bermuda changed its name to MRS Africa Holdings Limited, Bermuda.

The new management of the Company announced a change of name of the Company from Chevron Oil Nigeria Plc to MRS Oil Nigeria Plc ("MRS") effective 2 December 2009 following the ratification of the name change of the Company at the 40th Annual General Meeting of the Company on 29 September 2009.

The Company is domiciled in Nigeria and has its registered office address at: 2, Tincan Road Lagos

Nigeria

The Company is principally engaged in the business of marketing and distribution of refined petroleum products, blending and selling of lubricants and manufacturing and selling of greases.

2. Basis of preparation

a. Statement of compliance

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) and in the manner required by the Companies and Allied Matters Act, 2020 and the Financial Reporting Council of Nigeria Act, 2023.

b. Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain financial instruments measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

c. Composition of Financial statements

The financial statements comprise:

1. Statement of profit or loss and other comprehensive income
2. Statement of financial position
3. Statement of changes in equity
4. Statement of cash flows
5. Notes to the financial statements

8

MRS Oil Nigeria Plc.

Financial statements - 31 March, 2024

Notes to the financial statements

d. Financial Period

These financial statements cover the period from 1 January 2024 to 31 March 2024 with comparative figures for the financial year from 1 January 2023 to 31 March 2023.

e. Functional and presentation currency

These financial statements are presented in Nigerian Naira, which is the Company's functional currency. All financial information presented in Naira have been rounded to the nearest thousand unless stated otherwise.

1. Significant changes in the current reporting year

The implementation of deregulation policy on Petroleum Motor Spirit (PMS) immediately after inauguration of the new government in Nigeria had significant impact on our industry. This product line alone contribute about 94% of total revenue of the company in the year. The policy significantly affected the working capital requirements of the company by more than 180% and consequently increased our finance cost on bank credit lines for product purchase. Subsequently, in the first three months immediately after the policy took effect, our sales volume decreased by about 40% compared to average monthly sales volume of the months before the policy. Also, due to the increase in the pump price resulting from the subsidy removal, our average monthly revenue value in the last three months of the year increased by about 200% comparatively with revenue performances before deregulation. Sales volume also improved in the last quarter of the year. This indicated that the market had gradually adjusted to the new reality. Despite this significant change in the industry, our business recorded above budget performance in the year.

These recent events will continue to have an impact on oil price volatility. The Company will continue to monitor the oil prices and take adequate steps to manage its business and any financial impact of same. However, the Company's operations are not affected by seasonality or cyclic situation.

1. Going Concern

The directors have evaluated all the events and conditions that may cast significant doubts on the ability of the company to continue as a going concern and also its operations in the foreseeable future and reached a conclusion that, the Company will continue in business without the existence of a material uncertainty about the company's ability to operate as a going concern.

3. Critical accounting judgement and key sources of estimating uncertainty Use of judgements and estimates

In applying the Company's accounting policies, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognized and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized in the year in which the estimates are revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future year.

Critical judgements in applying the Company's accounting policies.

In the current year, the management have not made any significant or critical judgments in applying accounting policies that would have significant effects on the amounts recognized in these financial statements.

9