Chevron’s MRS Oil Shares Skyrocket 36% in December Amid Booming Fuel Sales

MRS Oil Nigeria Plc (Chevron) have surged over 36% month-to-date on the Nigerian Stock Exchange, bringing the company’s year-to-date performance to an impressive 71.42%.

Strong Financial Results Drive Confidence

On October 29, MRS Oil released its third-quarter earnings report, showcasing a remarkable pre-tax profit of N6.2 billion, a 108.9% increase from N3 billion in 2023.

Revenue also experienced significant growth, rising by 141.90% to N169.5 billion for the quarter. Year-to-date revenue totaled N248.7 billion, with Premium Motor Spirit (PMS) sales accounting for over 85% of this figure.

Following the earnings release, the stock saw little movement in November. However, December marked a turning point as bullish activity resumed, leading to four consecutive days of gains and positioning MRS Oil among the top performers on the Nigerian Exchange for the third week of the month. Chevron’s

Market Trends: A Year of Ups and Downs

January to February:

• The stock began 2024 positively, opening at N105 per share in January and climbing to N126 with a trading volume of 2 million shares.
• By February, the stock closed at N135, solidifying its position in the N130 range.

March to November:

• Market activity slowed significantly, resulting in limited price movement during the second and third quarters.

December Revival:

• In mid-December, MRS Oil regained momentum, closing strongly for four consecutive days. This resulted in a month-to-date trading volume of 4.1 million shares as of December 20, 2024. Chevron’s

Key Drivers of Bullish Momentum

Several factors contributed to the resurgence in MRS Oil’s stock price:

1. Outstanding Earnings Performance:
   • The October 29 earnings report highlighted a robust financial performance, with significant growth in both pre-tax profit and revenue, largely driven by PMS sales.
2. Federal Government Oil Bid Success:
   • MRS Oil was among the winners in the Federal Government’s inaugural oil bid under the Petroleum Industry Act 2021. Alongside TotalEnergies and Sifax, the company secured Petroleum Prospecting Licenses, granting it the rights to explore and develop hydrocarbons in both onshore and offshore blocks.
3. Competitive Pricing Strategy:
   • In December, MRS Oil reduced the pump price of petrol to N935 per liter in Lagos outlets, compared to the N1,000 price earlier in the month. This competitive pricing likely bolstered consumer confidence and reinforced the company’s market position.

Outlook

With strong financial performance, strategic gains in the oil sector, and a renewed focus on competitive pricing, MRS Oil Nigeria Plc is well-positioned for continued growth as it heads into 2025.