MRS Oil Nigeria Plc has announced plans to voluntarily delist its shares from the Nigerian Exchange Limited (NGX) following an impressive financial performance in 2024.
The decision, approved by shareholders during an Extraordinary General Meeting (EGM) on June 25, 2024, is aimed at granting the company greater operational flexibility while cutting costs associated with maintaining its public listing.
Strong Financial Growth in 2024
MRS Oil reported a 71.2% surge in revenue, reaching N312.2 billion, while its profit after tax climbed by 62.2% year-on-year to N6.49 billion.
The company attributed this growth to increased consumer demand, particularly following its high-profile purchase of refined petroleum products from the Dangote Refinery, which have gained favor among fuel-efficiency-conscious customers.
However, despite the revenue boost, the company noted that the hike in Premium Motor Spirit (PMS) prices due to full deregulation negatively impacted sales volume. Nevertheless, overall revenue growth offset the decline, keeping profitability on an upward trajectory.
What Happens After Delisting?
Once delisted, MRS Oil plans to move its shares to the NASD OTC Securities Exchange, a trading platform for unlisted securities, to allow continued trading opportunities for interested investors. The company reassured stakeholders that it remains committed to growth and financial transparency, despite exiting the NGX.
Share Buyback and Capital Reduction Plans
As part of the delisting process, MRS Oil will initiate a share buyback and share capital reduction program, allowing shareholders who do not wish to remain invested post-delist to exit.
The company has allocated funds to compensate dissenting shareholders, with the claim period set between April 4 and July 4, 2025. Investors who choose not to opt for the buyout within this window will have their shares automatically migrated to the NASD platform.
Regulatory Compliance and Future Outlook
MRS Oil has assured that the delisting process will adhere to all necessary regulatory requirements, including approvals from the Securities and Exchange Commission (SEC) and NGX.
According to the company, this strategic move will allow it to focus on long-term growth strategies without the constraints of public listing requirements. By reducing regulatory and compliance burdens, MRS Oil aims to enhance efficiency and profitability, ensuring sustained success in Nigeria’s evolving oil and gas sector.
