MRS Oil Nigeria Plc has projected a profit after tax of N2.93 billion for the second quarter of 2025, despite its impending delisting from the Nigerian Exchange Limited (NGX). The company's financial forecast reveals a mixed outlook, with concerns remaining about its ability to achieve its financial targets following its transition to the NASD Over-the-Counter (OTC) Securities Exchange.
Key Highlights
The company's financial projections reveal the following key points:
- Profit After Tax: MRS Oil Nigeria Plc expects a profit after tax of N2.93 billion for the second quarter of 2025.
- Revenue and Gross Profit: The company projects a turnover of N269.73 billion, with a gross profit of N10.04 billion.
- Operating Profit: Operating profit is estimated at N4.34 billion, while profit before tax stands at N4.37 billion.
- Earnings Per Share: Earnings per share are expected to be N8.54.
Concerns and Challenges
Despite the company's positive financial projections, concerns remain about its ability to achieve its financial targets following its transition to the NASD OTC Securities Exchange:
- Liquidity and Investor Confidence: Shareholders have raised questions about the impact of delisting on liquidity and investor confidence, given that the NASD lacks the same level of trading activity and visibility as NGX.
- Trading Volumes: Lower trading volumes on the NASD could impact MRS's ability to meet its revenue and profit projections.
- Market Confidence: The company's delisting could reduce market confidence and affect share liquidity, ultimately influencing its financial outlook.
Outlook
MRS Oil Nigeria Plc's transition to the NASD OTC Securities Exchange is expected to be completed within three months. While the company insists that delisting will lead to cost savings and operational flexibility, stakeholders argue that it could reduce market confidence and affect share liquidity. The company's ability to achieve its financial targets and maintain investor confidence will be closely watched in the coming months.
Subject: MRS Oil Nigeria Plc's Strategic Shift: Delisting and Restructuring amid Financial Performance Review
In a significant move, MRS Oil Nigeria Plc has announced its decision to voluntarily delist from the Nigerian Exchange Limited (NGX) and transition to the NASD OTC Securities Exchange. This strategic shift, approved by shareholders at the Extraordinary General Meeting (EGM) on June 25, 2024, marks a new chapter in the company's journey.
Aligning with Strategic Objectives
The company's transition to NASD OTC aligns with its strategic objectives, providing an alternative trading platform for its shares. This move reflects MRS Oil's restructuring efforts and its decision to operate in a less regulated trading environment, potentially impacting investor participation and market liquidity.
Supporting Shareholders
As part of the delisting process, MRS Oil has arranged a pay-out for dissenting and absentee shareholders, ensuring those who wish to exit receive fair value for their shares. The company has set aside the required funds to settle these shareholders, and the pay-out window will be open from April 4 to July 4, 2025.
Next Steps
After the pay-out window closes, shareholders who have not opted for the pay-out will be migrated to the NASD OTC platform, where their shares will continue to be tradable. The company's registrars will maintain an account for three months and submit a report to the Securities and Exchange Commission (SEC) listing all shareholders who have exited.
Investor Options
Shareholders who wish to claim their dividends or pay-out must contact the company's registrar within the stipulated period, submitting relevant documentation, including proof of shareholding and a valid means of identification. Any unclaimed funds after the deadline will revert to the company. Investors who choose to remain shareholders will automatically have their holdings transferred to NASD OTC, where they can continue to trade their shares in the over-the-counter market.
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