MRS Oil Plc witnessed a remarkable surge in its market value, climbing by 21% last week, despite a shortened trading session.
The stock reached a new 52-week high on Friday, driven by increased investor confidence following a significant deal with Dangote Refinery to supply petrol at lower prices.
Trading data revealed a spike in demand for MRS Oil shares, propelling the stock price from N180 to N217.80 per share. This sharp rise boosted the company’s market capitalisation to an impressive N74.68 billion on the Nigerian Exchange, doubling its value from a 52-week low of N115.
Market analysts attribute the bullish trend to expectations of strong earnings performance in the fourth quarter, coupled with optimism surrounding the partnership with Dangote Refinery. The deal is seen as a strategic move that could enhance the company’s profitability and competitiveness in the downstream oil sector.
In a regulatory filing, MRS Oil outlined its financial projections for the first quarter of 2025, forecasting a revenue of N129.358 billion. The company anticipates cost of sales to account for N124.543 billion, leaving a gross profit of N4.814 billion for the period.
After accounting for distribution, administrative expenses, and net finance costs, MRS Oil expects a pretax profit of N2.245 billion in the first three months of 2025. This robust outlook has further fuelled investor appetite for the stock.
As the year progresses, market watchers are keeping a close eye on MRS Oil’s performance, particularly in light of its strategic partnerships and projected earnings. The stock’s impressive run signals growing confidence in its ability to deliver value to shareholders in a competitive market.
