MRS Plc has released its Q3 2025 forecast, projecting a profit after tax of N3.95 billion, signaling sustained earnings resilience amid a challenging macroeconomic environment and tightening liquidity across Nigeria’s downstream oil and gas sector.

According to the forecast signed by its Chief Finance Officer and Managing Director, the company expects a turnover of N393.58 billion, with cost of sales estimated at N378.93 billion — leaving a modest gross profit of N14.65 billion.

This translates to a gross margin of just 3.7%, reflecting persistent cost pressures likely influenced by fluctuating petroleum prices, elevated logistics costs and FX volatility impacting importation of petroleum products and operational expenses.

Despite the thin margin, MRS PLC is forecasting an operating profit of N6 billion, buoyed by disciplined cost containment in distribution and administrative expenses, which are estimated at N8.91 billion.

Additional support comes from other income streams totaling N261.67 million, which marginally boosts profitability.

Finance costs remain under control at N58.61 million, leading to a profit before tax of N5.90 billion. After a tax provision of N1.95 billion, net profit is expected to settle at N3.95 billion.

Earnings per share are projected at N11.53, confirming steady value creation for shareholders despite sector-wide headwinds.

Further breakdown reveals that N2.37 billion of the profit is attributable to equity holders of the company, while N1.58 billion will be allocated to non-controlling interests.

MRS Plc’s cash flow position, however, reflects tightening liquidity and capital expenditure pressure. The company projects operating cash flow before working capital changes at N3.95 billion with additional N76.36 million generated from working capital adjustments, bringing total net cash from operating activities to N4.03 billion.

Conversely, the company anticipates a significant outflow of N5.63 billion from investing activities. No inflows are expected from financing activities in the quarter, leaving a net cash decline of N1.60 billion.

As a result, MRS Plc’s cash and cash equivalents are projected to reduce from N6.22 billion at the beginning of the quarter to N4.62 billion by the end of Q3, highlighting the strain from capital-intensive investments and the need for prudent treasury management going forward.