By NKIRUKA NNOROM

Despite 66.7 percent decline in its profit after tax for the year ended 31st December, 2013, the board of directors, MRS Oil Nigeria plc said they are prepared to pay N23.34 kobo dividend to shareholders for their investment in the company.

The proposed dividend amounts approximately N59.28 million gross dividends and would be paid on 15th August if approved by members of the company.

According to the notice filed with the Nigerian Stock Exchange, NSE, only investors whose names appeared on the register of company as at 19th July, 2013 will benefit from the dividend.

A breakdown of financial statement prepared in line with the International Financial Reporting Standard, IFRS, showed that profit after tax slumped to N205.121 million from N615.624 million, indicating 66.7 percent decrease.

Similarly, the profit before tax nose-dived fromN1.413 billion in 2011 to N378.755 million in the review period,  representing 73.2 percent decrease. Gross profit at N5.71 billion was 16.3 percent decrease from N6.822 billion in the previous year.

However, the revenue grew by 11.5 percent to N79.72 billion from N71.49 billion in 2011, while selling and distribution expenses improved by N28.8 percent from N996.307 million in 2011 to N709.67 million.

The cost of sales moved up by 14.5 percent to N74.015 billion as against N64.67 billion in the preceding period of 2011.

Following the released financials, huge movement was recorded in the stock as it rose maximally by 10 percent within the day. Analysts said that the movement suggests huge institutional trading.

MRS recorded a year high share price at N29.00 on February 12, 2013 with YTD price appreciation of 22.05 percent, following the impressive rally experienced in preceding year. Investors had sold-down consistently between February 12 and May 15 2013, depleting the YTD performance to 24.24 percent, while the stock remained at an all-time-low of N18.00.

Analysts at Proshare, said,  “Technical indicators (MACD) however points out that there is an improved bargain tendency towards the stock, with a growing appetite as the stock has stepped out of the bearish zone to close neutral in short term, indicating investors are willing to pay higher to acquire the stock in the near term.”

Currently about 253.99 million shares are held by about 23,551 Nigerian shareholders and one foreign shareholder (MRS Africa Holdings Limited, Bermuda) in MRS Oil Nigeria Plc, a company with the main business of marketing and/or manufacture of petroleum related products in Nigeria. With about 138 active company owned operating outlets and more than 255 third party owned operating outlets, MRS Oil Nigeria Plc is a major player in Nigeria’s petroleum products marketing industry.

MRS is also a leading producer of quality lubricating oils and greases. The Company is principally engaged in the business of marketing and distribution of refined petroleum products, blending of lubricants and manufacturing of greases.