Amid Delisting Plans, MRS Forecasts N2.9bn PAT in Q2

Kayode Tokede

MRS Oil Nigeria Plc, yesterday forecasted a profit after tax of N2.93 billion for the second quarter of (Q2 2025)  amid its delisting plans from the Nigerian Exchange Limited (NGX). 

The oil & gas company in its financial forecast filed on the Exchange  indicated a turnover of N269.73 billion, with a cost of sales amounting to N259.69 billion, resulting in a gross profit of N10.04 billion. 

The company forecasted an operating profit is estimated at N4.34 billion, while profit before tax stands at N4.37 billion after factoring in finance costs of N146.53 million. Earnings per share are expected to be N8.54.

Cash flow projections show a net cash decrease of N1.53 billion for the quarter, with operating activities generating N3.45 billion, while investing activities recorded an outflow of N4.5 billion. By the end of Q2 2025, MRS expects to hold a cash and cash equivalent balance of N4.69 billion, down from N6.22 billion at the start of the period.

Despite these positive figures, concerns remain about the company’s ability to achieve its financial targets following its planned delisting from NGX and transition to the NASD Over-the-Counter (OTC) Securities Exchange. Shareholders have raised questions about the impact on liquidity and investor confidence, given that the NASD lacks the same level of trading activity and visibility as NGX.

National Coordinator of the Progressive Shareholders Association of Nigeria (PSAN), Mr. 

Boniface Okezie expressed skepticism on the company delisting from the Exchange. 

“The NGX has better trading volumes. Visibility of companies and monitoring of stocks price movement for listed companies is easier on the NGX than other trading platforms. When you go to other platforms, the equity movement may remain stagnant. Is that what they want? Such a move could potentially deter investors and affect their overall stock performance,” he said, cautioning that lower trading volumes on the NASD could impact MRS’s ability to meet its revenue and profit projections.

MRS’s transition to the NASD is expected to be completed within three months. In its delisting announcement, the company advised shareholders and the public to exercise caution when trading its shares until the process is finalized and officially communicated. This advisory may influence stock performance on the NGX in the period leading up to its eventual exit. 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, ultimately