MRS Oil Nigeria Plc has officially announced its plans to voluntarily delist its shares from the Nigerian Exchange Limited (NGX) after reporting a remarkable financial performance in 2024. The decision to delist has been made as part of the company’s strategic restructuring to optimize operational efficiency and reduce costs related to maintaining a public listing.
Shareholders Approve Delisting at Extraordinary General Meeting
This decision was formally approved by shareholders during an Extraordinary General Meeting (EGM) held on June 25, 2024. The move aligns with MRS Oil’s long-term business vision, allowing the company to operate with greater flexibility, reduce regulatory costs, and focus on maximizing profitability without the obligations associated with being a publicly traded entity on the NGX.
Strong Financial Growth in 2024
MRS Oil Nigeria recorded a substantial financial upswing in 2024, showcasing its ability to navigate market challenges effectively. The company’s revenue surged by an impressive 71.2%, reaching a total of N312.2 billion. Additionally, its profit after tax (PAT) soared by 62.2% year-on-year, totaling N6.49 billion.
The company attributed this significant growth to increased consumer demand and a strategic shift in its supply chain. Notably, MRS Oil’s purchase of refined petroleum products from the Dangote Refinery played a key role in boosting its market position. The superior fuel efficiency of these products attracted a broad customer base, further strengthening the company’s revenue stream.
Despite these financial gains, MRS Oil acknowledged that the full deregulation of the oil and gas sector resulted in increased Premium Motor Spirit (PMS) prices, which negatively impacted sales volume. However, the overall rise in revenue was sufficient to counterbalance the volume decline, ensuring sustained profitability.
Post-Delisting Plans: Transition to NASD OTC Securities Exchange
MRS Oil has assured its stakeholders that delisting from NGX does not mean the end of trading opportunities for investors. The company intends to move its shares to the NASD OTC Securities Exchange, an alternative trading platform for unlisted securities. This transition will allow existing and prospective investors to continue trading MRS Oil shares with ease.
By making this move, MRS Oil aims to streamline its financial operations, avoid certain regulatory constraints, and enhance long-term growth without the complexities of being listed on the NGX. The company has reaffirmed its commitment to transparency, stating that it will continue to provide financial disclosures and updates as required by regulatory bodies.
Share Buyback and Capital Reduction Plans
As part of the delisting process, MRS Oil Nigeria Plc will implement a share buyback and capital reduction program to accommodate shareholders who do not wish to remain invested after the delisting. This move allows investors who prefer an exit strategy to redeem their shares at a fair market price before the company transitions to the NASD platform.
The company has allocated a significant financial package to facilitate the buyback process. The claim period for shareholders who wish to opt out will run from April 4 to July 4, 2025. Any investors who do not take advantage of the buyout during this window will have their shares automatically migrated to the NASD trading platform.
Regulatory Compliance and Future Outlook
MRS Oil Nigeria has assured that its delisting process will comply with all necessary regulatory requirements. The company is working closely with the Nigerian Exchange Limited (NGX), the Securities and Exchange Commission (SEC), and other relevant regulatory bodies to ensure a smooth transition.
According to MRS Oil, this strategic move will allow the company to sharpen its focus on long-term expansion strategies while eliminating certain regulatory obligations. The company believes that by reducing compliance burdens and optimizing internal efficiencies, it can achieve greater profitability and sustain its market leadership in Nigeria’s competitive oil and gas industry.
MRS Oil remains committed to delivering value to its stakeholders, expanding its market presence, and adapting to the evolving dynamics of the Nigerian energy sector. The company reassures investors that it will continue to maintain high operational standards while exploring new growth opportunities beyond the NGX.