MRS will work to meet 2017 forecast on dividend – Gbodume

The management of MRS Oil Plc have assured that its forecast for the 2017 financial year, is borne out of what it expects to achieve in the 2017 financial year, but certainly will work hard to meet its dividend projection of N1.60 per share.

Mr. Andrew Gbodume, Managing Director, MRS OIL Nigeria Plc, gave the assurance Tuesday in Lagos, during the presentation of the company’s facts behind the figures to the capital market community at the Nigerian Stock Exchange (NSE), adding that company performed remarkably in 2016 and first quarter 2017, the development, he assured the company will surpass in the remaining quarters of 2017.” !I have an able team that ais working and we will deliver the dividend as planned” he said.

He enumerated some of the challenges plaguing the industry as slow business activities due to economic recession, Nonpayment of outstanding subsidies owed to marketers and insufficient supply of foreign exchange. “So, there are many challenges in doing business” Gbedume said.

In addition to the challenges, the company, Gbodume said, in some cases trades off margin, to remain in business, however, when there is no edge against competitors, no tradeoff is done, this, he said also affects earnings.

Gbodume said that since May 2015 to date, the Nigerian downstream oil sector has been besieged by myriads of problems, but assured that MRS Oil will continue to surmount such challenges and creating more opportunities to boost earnings and creating more value.

He revealed that the accumulated interest in the company’s 2016 result, was as a result of accumulated subsidy owed by the federal government when it is not paid on time.

He said that transportation cost continues to bite hard on downstream petroleum companies , adding that the truck scheme the company has with its users , previously at N21 million per truck, now cost double the price, coupled with running cost, tyros cost and increasing cost of diesel, continue to increase cost of doing business.

He said that profit after tax in 2016 peaked at N1.465,095 from N935, 625 million in 2015, representing 54.58 per cent growth, which he said was necessitated by the petrol price increase in 2016, and the price adjustment that follows, from N86.50 to N145. Per liter.

According to the MD MRS Oil, q1 2017 was remarkable but in line with the business environment and the impact of none payment of outstanding subsidy by the government also reflected.

Finance cost he said increased by 113.6 per cent, from NI67.578 million in Q1 2016 to N366.292 million in Q1 2017, ended 30 March 2017.

The high finance cost was propelled by none payment of subsidy which could have been turned to working capital.

Mr. Oscar Onyema, CEO Nigerian Stock Exchange (NSE) lauded the company for strengthening its governance structure with the information provided at the facts behind the figures.

He urged other companies to emulate MRS oil to release timely information about their companies to the public.

“MRS remains a dominant player in the downstream oil and gas sector in Nigeria and has sustained a veritable dividend payment.”