MRS Oil Nigeria Plc has projected a profit after tax of N2.93 billion for Q2 2025, according to its financial forecast filed with the Nigerian Exchange Limited (NGX). The forecast includes a turnover of N269.73 billion, with a gross profit of N10.04 billion and an operating profit of N4.34 billion. Despite the impending delisting from NGX, the company anticipates earnings per share of N8.54 and a profit before tax of N4.37 billion.
The company also projects a net decrease of N1.53 billion in cash flow, although it expects a cash balance of N4.69 billion by the end of Q2, a decline from N6.22 billion at the start of the period. Operating activities are expected to generate N3.45 billion, but investing activities will result in an outflow of N4.5 billion. While the financial projections remain positive, the delisting process is raising concerns among shareholders and analysts.
There is skepticism about the potential impact of MRS Oil’s delisting from NGX and transition to the NASD Over-the-Counter (OTC) Securities Exchange. Shareholders, such as Boniface Okezie of the Progressive Shareholders Association of Nigeria (PSAN), have raised concerns about lower trading volumes on NASD, which may lead to reduced liquidity and visibility for the company’s shares. This shift could ultimately affect the company’s stock performance and investor confidence.
MRS Oil’s transition to the NASD is expected to be completed within three months. The company has advised shareholders to exercise caution when trading shares during this period, as the final delisting process may impact stock performance. While MRS claims the move will provide cost savings and operational flexibility, stakeholders fear it could erode market confidence and negatively influence its financial outlook.
Source: The sun