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MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Profit and Loss Account
For the Quarter ended 31 March 2013
Notes March-13 Mar-12 Dec-12
N’000 N’000 N’000
TURNOVER 2 (a) 15,620,727 19,176,905 79,727,349
Cost of sales 2 (b) (74,015,487)
GROSS PROFIT 699,008 1,423,454 5,711,862
Selling and Distribution expenses (709,665)
General and Administrative expenses (4,337,680)
Other income 3 108,569 3,764 923,383
Exceptional item 4 - -
OPERATING PROFIT (168,199) 196,552 1,587,900
Interest income 5 5,848 39,958 149,051
Interest expense and similar charges 6 (1,358,196)
PROFIT BEFORE TAXATION 7 (271,966) 236,510 378,755
Taxation 8 (a) (173,634)
PROFIT AFTER TAXATION (271,966) 123,272 205,121
APPROPRIATION
Transferred to retained earnings 123,272
Earnings per share (Naira) - 0.0
Declared Dividend per share (kobo) - 0
(784,136)
(446,530)
(17,753,451) (14,921,720)
(273,548)
(702,228)
The accounting policies on pages 10 to 15 and accompanying notes on pages 19 to 33 form an integral part of these
financial statements.
-
(109,616) -
- (113,238)
The board of directors have proposed a dividend of =N=XXX per share (2012:2334 kobo per share) on the issued share
capital of 253,988,672 ordinary shares of 70 kobo each ( 2012: 253,988,672 ordinary shares of 50 kobo each).
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Balance Sheet
MAR 2013 DEC 2012
N’000 N’000
NON-CURRENT ASSETS:
Property, Plant and Equipment 10a 21,821,626 22,013,568
Intangible assets 11 140,310 140,560
Trade and other receivable 12 5,474 7,507
Prepayments 12 257,742 236,673
TOTAL NON - CURRENT ASSETS 22,225,152 22,398,308
CURRENT ASSETS:
Inventory 13 8,540,547 4,331,733
Trade and other Receivable 12 14,829,287 18,406,207
Prepayments 12 229,511 158,738
Cash and cash equivalents 14 12,750,621 10,300,702
TOTAL CURRENT ASSETS 36,349,966 33,197,380
CURRENT LIABILITIES:
Security Deposit 15 (1,545,915) (1,510,904)
Dividend Payable 16 (473,942) (473,942)
Trade and other Payables 17 (24,497,879) (14,180,677)
Bank overdraft and short term borrowings (6,345,452) (13,460,102)
Tax payable (459,038) (459,038)
NET CURRENT ASSETS 3,027,740 3,112,717
TOTAL ASSETS LESS CURRENT LIABILITIES 25,252,891 25,511,025
NON - CURRENT LIABILITIES:
Deferred tax liability 19 (6,238,600) (6,238,600)
Provision for long term employee benefits 20 (232,247) (218,415)
TOTAL NON-CURRENT LIABILITIES (6,470,847) (6,457,015)
NET ASSETS 18,782,044 19,054,010
EQUITY
Called -up share capital 21 126,994 126,994
Retained earnings 22 18,655,050 18,927,016
TOTAL EQUITY 18,782,044 19,054,010
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Statement of Cash Flows
For the year ended 31 March 2013
Mar-13 Dec-12
Notes N’000 N’000
Cash flows from operating activities
Operating profit before working capital changes 23 14,633 2,992,365
Working capital changes 24 3,943,484
Exceptional item -
Increase in long term prepayments
(Decrease)/increase in security deposits -
Long service award paid -
Gratuity paid
Value added tax paid
Withholding tax credit notes uitilised
Tax paid
Net cash provided by operating activities 3,958,117 10,277,414
Cash flows from investing activities
Proceeds from sale of fixed assets 6,668
Purchase of fixed assets 10 (134,737)
Purchase of intangible assets (9,220)
Interest received 146,892
Net cash (used in)/ provided by investing activities (134,737) (195,284)
Cash flows from financing activities
Interest received on Short- term investments 5,848 -
Increase/(Net repayment) of short term borrowings
Dividends paid (202,660)
Interest paid
Net cash used in financing activities
Net increase in cash and cash equivalents 3,863,709 1,468,267
CASH AND CASH EQUIVALENTS, beginning of year 8,886,913 7,418,646
CASH AND CASH EQUIVALENTS, end of year 12,750,622 8,886,913
(77,789)
8,611,364
- -
-
(271,175)
34,481 (456,424)
-
(909)
- -
-
- (976,442)
40,329 (8,613,863)
The accounting policies on pages 11 to 15 and accompanying notes on pages 19 to 33 form an integral part of these financial
statements
(339,624)
- (7,954,779)
-
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Statement of Accounting Policies
(a)Basis of Accounting
(b)Receivables
(c)Turnover
(d)Property, plant and equipment
Property, plant and equipment are stated at cost or valuation less accumulated depreciation.
(e)Depreciation
Gains and losses on disposal of property, plant and equipment are included in the profit and loss account.
Depreciation is provided at rates calculated to write off the cost/valuation, less estimated residual value, of each asset
on a straight-line basis over its estimated useful life. During the year, the Company revised the depreciation rate as
follows:
A summary of the principal accounting policies, all of which have been applied consistently throughout the current and
preceding years, except as shown in note (f) is set out below.
The financial statements are prepared under the historical cost convention, modified to include the revaluation of
certain fixed assets and the use of actuarial methods for estimating certain employee benefits.
Debtors are stated net of allowances for debts considered doubtful of recovery. These allowances are recorded in the
profit and loss account. Debts deemed bad are written off to the profit and loss account.
Turnover represents net value of goods and services provided by the Company to third parties in the normal course of
business net of returns, trade discounts, rebates and value added tax. Turnover for regulated products equates amounts
that accrue to the Company directly net of amounts the Company collects from the regulators on behalf of third
parties i.e. as dealer commissions and transport costs.
Turnover from goods sold is recognised when persuasive evidence exists that the significant risks and rewards of
ownership have been transferred to the buyer, recovery of consideration is probable, the associated costs and possible
return of goods can be estimated reliably, there is no continuing management involvement with the goods and the
amount of turnover can be measured reliably.
Costs includes expenditure that are directly attributable to the acquisition of the property, plant and equipment. Costs
relating to property, plant and equipment under construction or in the process of installation are disclosed as Capital
Work in Progress. The cost attributable to each asset is transferred to the relevant category immediately the asset is
available for use.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Depreciation rate (%) Revised depreciation rate (%)
Over the unexpired period of the
lease Not Revised
Over the earlier of the unexpired
period of the lease of the Land or
10%
Over the earlier of the unexpired
period of the lease of the Land or
4 %
20 10
10 5 - 10
25 5 - 10
10 5 - 10
33.33 Not Revised
20 Not Revised
25 Not Revised
(f) Intangible assets
Automotive equipment
Asset category
Leasehold land and Building
● Leasehold Land
● Buildings
● Partitioning
Plant and Machinery
● Machinery
● Service station equipment
Storage and retail outfit tanks
Computer equipment
Furniture and fittings
The impact of the change in depreciation rates was a decrease of N1.67 billion in depreciation charge
for the year.
Depreciation is not calculated on property, plant and equipment until they are available for use and is
included in the profit and loss account.
An intangible asset is recognised if, and only if, it is probable that the expected future economic benefits
that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably.
The cost of an intangible asset with a finite useful life is amortised to the profit and loss account on a
straight line basis over its estimated useful life. Amortisation begins when the asset is available for use.
Amortization ceases at the earlier of the date that the asset is classified as held for sale and the date that
the asset is derecognized.
After initial recognition, intangible assets with finite useful lives are carried at cost less any accumulated
amortization and impairment losses. The estimated useful lives for intangible assets which consist
mainly of computer software is the earlier of 5 years or the license period of the related software.
Subsequent expenditure on intangible assets with finite useful life is capitalised only when it increases
the future economic benefits embodied in the specific asset to which it relates. All other expenditure is
expensed as incurred.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(g) Revaluation reserve
(h)
-
-
-
Cost incurred in bringing each product to its present location and condition is based on:
This new policy is in line with the Statement of Accounting Standard (SAS) 31 issued by the Financial
Reporting Council (formerly known as the Nigerian Accounting Standards Board), which is effective
for annual periods beginning on or after 1 January 2011. The policy has been applied prospectively. No
reclassifications were made to the balance sheet on implementation of the new accounting policy as the
Company as at that date had fully depreciated all qualifying software. There was no effect on either the
profit and loss account or retained earnings.
Property, plant and equipment are revalued every three (3) years. Surpluses/ (deficits) arising on the
revaluation of individual Property, plant and equipment are (credited)/debited to a non-distributable
reserve known as the Property, plant and equipment. Revaluation deficits in excess of the amount of
prior revaluation surpluses on the same asset are charged to the profit and loss account.
On disposal of previously revalued Property, plant and equipment, an amount equal to the revaluation
surplus attributable to that asset is transferred from the revaluation reserve to the retained earnings.
Stocks
Stocks are valued at the lower of cost and net realizable value.
White petroleum products Weighted average cost, to the extent that the weighted average cost
reflects historical cost, including transportation and clearing costs
(for deregulated products). For regulated products, the cost is
reduced by the subsidies due. See Note (p).
Product and packaging materials,
Work-in-progress, lubricants and
greases
A first-in, first-out basis, including transportation and clearing
costs.
Stock-in-transit Purchase cost incurred to date.
The cost of finished goods and work in progress comprises raw materials, direct labour, other direct
costs and related production overheads (based on normal operating capacity).
Net realisable value is based on estimated normal selling price less further costs expected to be incurred
to completion and disposal. Allowance is made for defective and slow moving items as appropriate.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(i) Taxation
Tax expenses/credits are recognised in the profit and loss account.
(j) Deferred taxation
(k) Cash and cash equivalents
(l) Foreign Currency Transactions
Deferred tax is charged to the profit and loss account except to the extent that it relates to a transaction
that is recognised directly in equity.
Income tax is the expected amount of income tax payable on taxable profit determined in accordance
with Companies Income Tax Act (CITA) using statutory tax rates at the balance sheet date and any
adjustment to tax payable in respect of previous years.
Education tax is assessed at 2% of the assessable profits while capital gains tax is assessed at 10% of the
capital gains.
Deferred taxation, which arises from differences in the timing of the recognition of items in the
financial statements and by the tax authorities, is calculated using the liability method. Deferred tax is
provided on all timing differences at the rates of tax likely to be in force at the time of reversal. A
deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the assets will be utilised. Deferred tax assets are reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
For the purpose of reporting cash flows, cash and cash equivalents include cash on hand, cash balances
with banks and short term deposits with banks with original maturity of three months or less.
Transactions denominated in foreign currencies are recorded in Naira at exchange rates ruling at the
dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the
balance sheet date are reported at the rates of exchange prevailing at that date or where appropriate at the
contracted rate of exchange if the balance is to be settled at a contracted rate. Any gain or loss arising
from a change in exchange rates, subsequent to the dates of transactions, is included as an exchange gain
or loss in the profit and loss account.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(m) Employee benefits
i. Gratuity Scheme:
ii. Other long term employee benefits:
iii. Pension Fund Scheme:
(n) Provisions
(o) Impairment
The carrying value of the assets are reviewed at each balance sheet date to determine whether there is
any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated.
An impairment loss is recognised whenever the carrying value of an asset exceeds its recoverable
amount.
Impairment losses are recognized in the profit and loss account except where they relate to previously
revalued assets, in which case, they are recognised directly against any revaluation surplus to the extent
that an amount is included in the revaluation reserve account for the related assets, with any remaining
loss recognised in the profit and loss account.
The Company operates an unfunded defined benefit gratuity scheme for its permanent staff. The
benefits under the scheme are related to employees' length of service and remuneration. Lump-sum
benefits payable upon retirement or resignation of employment are fully accrued over the service
lives of employees of the Company. The liability recognised in the balance sheet in respect of the
unfunded gratuity scheme is the present value of the defined benefit obligation at the balance sheet
date. The defined benefit obligation is calculated annually by an independent actuary using the
projected unit credit method. Actuarial gains or losses arising during the year are charged in full to
the profit and loss account.
Other long term employee benefits are accrued over the service life of the employees. The charge to
profit and loss account is based on independent actuarial valuation performed using the projected unit
credit method. Actuarial gains or losses are recognised in full in the profit and loss account.
The Company, in line with the provisions of the Pension Reform Act 2004, operates a defined
contribution pension scheme under which the Company and its employees each contribute 12% and
3% respectively of the employees’ monthly basic salary, housing and transport allowances to the
fund. The staff contributions to the scheme are funded through payroll deductions while the
Company's contributions are accrued and charged fully to the profit and loss account.
A provision is recognized only if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(p) Government grants
(q) Dividends
(r) Leases
(i) Where the Company is the lessee
(ii) Where the Company is the lessor
When assets are held subject to a finance lease, the transactions are recognized in the books of the
Company at the net investments in the lease. Net investment in the lease is the gross investment in the
lease discounted at the interest rate implicit in the lease. The gross investment is the sum of the
minimum lease payments plus any residual value payable on the lease. The discount on lease is defined
as the difference between the gross investment and the present value of the asset under the lease. The
discount is recognized as unearned in the books of the Company and amortized to income as they are
earned over the life of the lease at a basis that reflects a constant rate of return on the Company’s net
investment in the lease.
Petroleum Products Pricing Regulatory Agency (PPPRA) subsidies which compensate the Company for
losses made on importation of certain refined petroleum products are recognised when there is reasonable
assurance that they will be recovered and the Company has complied with the conditions attached to
receiving the subsidy. The subsidies are recognised as a reduction to the landing cost of the subsidised
petroleum product.
Dividends on ordinary shares are recognized as a liability in the period in which they are declared.
Unclaimed dividends which remain unclaimed for a period exceeding twelve (12) years from the date of
declaration and which are no longer actionable by shareholders in accordance with section 385 of the
Companies and Allied Matters Acts of Nigeria are written back to retained earnings.
Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are
classified as finance leases. At the beginning of the lease term, the leased asset is measured at an
amount equal to the fair value of the leased asset less the present value of unguaranteed or partially
guaranteed residual value which would accrue to the lessor at the end of the term of the lease.
Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy
applicable to that asset.
Minimum lease payments made under finance leases are apportioned between the finance expense and
the reduction of the outstanding liability. The finance expense is allocated to each period during the
lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Contingent lease payments are accounted for by revising the minimum lease payments over the
remaining term of the lease when the lease adjustment is confirmed.
Other leases are classified as operating leases and are not recognised on the Company’s balance sheet.
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the
term of the lease. Lease incentives received are recognised as an integral part of the total lease expense,
over the term of the lease.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(s) Segment Reporting
(t) Jointly Controlled Assets
Jointly controlled assets refers to the Company's interests in joint aviation facilities held jointly with other
parties. These financial statements include the Company's share of these jointly controlled assets and a
proportionate share of the relevant revenue and related operating costs.
When assets are held subject to an operating lease, the assets are recognized as property, plant and
equipment based on the nature of the asset and the Company’s normal depreciation policy for that class
of asset applies. Lease income is recognized on a straight line basis over the lease term.
All indirect costs associated with the operating lease are charged as incurred to the profit and loss
account.
A segment is a distinguishable component of the Company that is engaged either in providing related
products or services (business segment), or in providing products or services within a particular economic
environment (geographical segment), which is subject to risks and returns that are different from those of
other segments.
The Company’s primary format for segment reporting is based on business segments. The business segments
are determined by management based on the Company’s internal reporting structure.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can
be allocated on a reasonable basis.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Notes to the Financial StatementsFor the year ended 31 March 2013
1 Reporting entity
2a Turnover
(a)
Mar 2013 Dec 2012
N’000 N’000
Premium Motor Spirit (PMS) 10,946,857 58,922,799
Aviation Turbine Kerosene (ATK) 2,340,560 10,120,921
Automotive Gas Oil (AGO) 1,396,048 6,281,355
Lubricants and greases 695,097 2,459,812
Dual Purpose Kerosene (DPK) 242,166 1,713,289
Low Pour Fuel Oil (LPFO) - 229,173
15,620,727 79,727,349
(b) Analysis of turnover and cost of sales:
For the year ended 31 March 2013
N’000 % of Total N’000 % of Total N’000 % of Total N’000 %
Turnover 12,585,071 80.57 2,340,560 15 695,097 4 15,620,727 100
Cost of sales (12,007,667) 80.47 (2,313,229) 16 (600,823) 4 (14,921,720) 100
Gross profit 577,404 82.60 27,330 4 94,274 13 699,008 100
For the year ended 31 December 2012
N’000 % of Total N’000 % of Total N’000 % of Total N’000 %
Turnover 67,146,616 84 10,120,921 13 2,459,812 3 79,727,349 100
Cost of sales (62,419,474) 84 (9,304,720) 13 (2,291,293) 3 (74,015,487) 100
Gross profit 4,727,142 83 816,201 14 168,519 3 5,711,862 100
* C&I represents Consumer and Industry markets.
Subsequent to the acquisition of Chevron Africa Holdings on 20 March 2009 by Corlay Global SA of Panama and ratification by the shareholders at the
Annual General Meeting of 29 September 2009, the Company's name was changed to MRS Oil Nigeria Plc from Chevron Oil Nigeria Plc, effectively on 2
December 2009. The Company is domiciled in Nigeria.
Lubes
MRS Oil Nigeria Plc (''the Company'') was incorporated as Texaco Nigeria Limited as a privately and wholly-owned subsidiary of Texaco Africa Limited
(later changed to Chevron Africa Holdings Limited) on 12 August 1969. It was converted to a Public Limited Liability Company in 1978.
The Company is primarily engaged in manufacturing and/or marketing of refined petroleum products, lubricants and greases.
Turnover for the year, all of which was earned in Nigeria, comprises:
Retail/C&I *
Lubes Total
Aviation
AviationRetail/C&I *
Total
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
3 Other income
Other income comprises:
Mar 2013 Dec 2012
N’000 N’000
Rental and lease income 3,201 136,591
Loss on disposal of fixed assets (0) (15,875)
Income on storage services - 425,409
Sundry income 105,368 377,258
108,569 923,383
4 Exceptional item
Exceptional item relates to the cost of repainting of all service stations in Nigeria to reflect the Company's brand ('MRS').
5 Interest income
Mar 2013 Dec 2012
N’000 N’000
Interest on fixed deposits 5,710 147,721
Interest on dealers' loans and receivables 138 1,330
5,848 149,051
6 Interest expense and similar charges
N’000 N’000
Finance cost for the period 109,616 1,358,196
7 Profit before tax
(a) Profit before taxation is stated after charging/(crediting):
Mar 2013 Dec 2012
N’000 N’000
Depreciation 326,928 1,476,481
Management fee 132,526 531,628
Amortisation of intangible assets 31,301
Directors' remuneration (Note 7 (b) (iv)) - 17,034
Employee costs (Note 7 (b)(i)) 168,050 812,667
Auditors' remuneration 3,125 24,914
Bad debt provision 5,678 -
Loss on disposal of fixed assets 0 15,875
Foreign currency exchange loss/(gain) (13,594) 856,361
Interest expense and similiar charges relate to interest on short-term and overdraft facilities.
Interest income comprises:
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(b) Employee costs and directors’ remuneration
(i) Employee costs during the year comprise:
Mar 2013 Dec 2012
N’000 N’000
Salaries and wages 119,026 581,257
Other employee benefits 26,505 54,351
Employer's pension contribution 12,517 64,442
Gratuity charge (Note 23 (a)) 10,003 102,473
Other long term employee benefit charge (Note 23 (b)) - 10,144
168,050 812,667
(ii)
Mar 2013 Dec 2012
Number Number
Administration 17 23
Technical and production 19 19
Operation and distribution 22 35
Sales and marketing 32 32
90 109
(iii)
Mar 2013 Dec 2012
Number Number
N N
1,000,001 - 2,000,000 -
2,000,001 - 3,000,000 1 1
3,000,001 - 4,000,000 15 19
4,000,001 - 5,000,000 40 50
5,000,001 - 6,000,000 6 10
6,000,001 - 7,000,000 10 10
7,000,001 - 8,000,000 11 12
8,000,001 - 9,000,000 1 2
9,000,001 - 10,000,000 1 1
Above - 10,000,000 5 4
90 109
The average number of full-time persons employed during the year (other than executive directors) was as follows:
Higher-paid employees of the Company, other than directors, whose duties were wholly or mainly discharged in Nigeria, received remuneration in
excess of N1,000,000 (excluding pension contributions) in the following ranges:
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(iv)
Mar 2013 Dec 2012
N’000 N’000
Fees - 1,500
Other emoluments - 15,534
- 17,034
The directors' remuneration shown above includes:
Mar 2013 Dec 2012
N’000 N’000
Chairman - -
Highest paid director - 4,747
Other directors received emoluments in the following ranges:
Mar 2013 Dec 2012
Number Number
N N
Nil 4
100,001 1,000,000 0
1,000,001 2,000,000
2,000,001 3,000,000
3,000,001 4,000,000
4,000,001 5,000,000 2
5,000,001 - 6,000,000
8 Taxation
(a)
Mar 2013 Dec 2012
N’000 N’000
Current year provision:
Income tax - 353,460
Education tax - 31,107
Prior Year (over)/underprovision - (48,047)
For the year (Note 8 (b)) - -
Deferred tax (Note 21) - (162,886)
Charge to profit and loss - 173,634
The tax charge for the year has been computed after adjusting for certain items of expenditure and income which are not deductible or chargeable for
tax purposes. Tax charge for the year is analysed as follows:
The executive directors of the Company are on secondment from the parent company and the related costs are borne by the parent company.
Directors's remuneration (including pension contributions) for directors of the Company charged to the profit and loss account are as follows:
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
(b) The movement on the tax payable account during the year was as follows:
Mar 2013 Dec 2012
N’000 N’000
Balance, beginning of year 459,038 1,157,171
Provision for the year 336,520
Withholding tax credit notes utilised (58,211)
Payments during the year - (976,442)
Balance, end of year 459,038 459,038
9 Earnings per share and declared dividend per share
(a) Earnings per share
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
10 Fixed assets
(a) The movement on these accounts during the year was as follows:
Leasehold land
and buildings
Plant and
machinery
Automotive
equipment
Computer and
office
equipment
Furniture
and fittings
Capital Work in
Progress
Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000
COST:
Beginning of year 13,754,253 9,876,569 1,333,111 761,279 191,301 125,700 26,042,213
Revaluation - - - - - - -
Additions - - - - - 134,737 134,737
Reclassification to accruals - - - - - - -
Transfers - - - - - - -
Disposals - - - - - -
End of year 13,754,253 9,876,569 1,333,111 761,279 191,301 260,437 26,176,950
DEPRECIATION:
Beginning of year 578,434 1,850,304 954,350 525,460 120,097 - 4,028,645
Charge for the year 22,385 238,846 35,215 26,187 4,046 - 326,679
Disposals - - - - -
End of year 600,819 2,089,150 989,565 551,647 124,143 - 4,355,324
NET BOOK VALUE:
As at 31st March 2013 13,153,434 7,787,419 343,546 209,632 67,158 260,437 21,821,626
As at 31st Dec. 2012 13,175,819 8,026,265 378,761 235,819 71,204 125,700 22,013,568
-
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
10b (d) Capital commitments
Mar 2013 Dec 2012
N’000 N’000
Contracted 401,689 1,541,856
Not contracted -
401,689 1,541,856
11
Mar 2013 Dec 2012
N’000
At cost:
Balance, beginning of year 175,050 165,830
Additions, during the year - 9,220
Balance, end of year 175,050 175,050
Mar 2013 Dec 2012
N’000 N’000
Amortisation: -
Balance, beginning of year (34,490) (3,189)
Charge for the year (Note 7) (250) (31,301)
Impairment charge (Note 7) -
Balance, end of year (34,740) (34,490)
Mar 2013 Dec 2012
N’000 N’000
Net carrying amount:
Balance, beginning of year 140,560 175,050
Balance, end of year 140,310 140,560
Capital expenditure commitments as at year end authorised by the Board of Directors comprise:
Intangible assets represent the cost of acquired software during the year.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
12 Debtors and prepayments
Debtors and Prepayments comprise:
Mar 2013 Dec 2012
N’000 N’000
Trade receivables 4,963,779 3,440,509
Petroleum Equalisation Fund (PEF) 3,672,125 3,193,286
Petroleum Support Fund (PSF) 2,851,803 8,627,610
Employee receivables 27,619 27,337
Due from joint venture partners 75,549 62,763
Directors' debit balance - -
Other debtors 254,598 215,475
Withholding tax receivable 78,019 71,990
Receivables from registrar 214,697 214,697
Receivables from related parties 3,189,300 2,557,888
Interest receivable - 2,159
Less: non-current portion : loans to employees (5,474) (7,507)
15,322,015 18,406,207
13 Inventory
Stocks comprise:
Mar 2013 Dec 2012
N’000 N’000
Premium Motor Spirit (PMS) 4,088,962 872,340
Lubricants and greases 1,976,861 1,722,285
Aviation Turbine Kerosene (ATK) 1,905,183 1,307,816
Automotive Gas Oil (AGO) 545,961 300,635
Dual Purpose Kerosene (DPK) 145,554 126,371
Low Power Fuel Oil - -
Packing materials and other sundry stocks (113,504) 2,286
Work in progress (8,470)
Stocks in transit -
8,540,547 4,331,733
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
14 Cash and cash equivalents
Cash and cash equivalents comprise:
Mar 2013 Dec 2012
N’000 N’000
Cash at Bank and in hand 5,545,211 1,155,398
Short term deposits with banks 7,205,410 9,145,304
12,750,621 10,300,702
Bank overdrafts used for cash management purposes 0 (1,413,789)
12,750,621 8,886,913
15 Security deposits
These deposits do not bear interest.
16 Dividend payable
The movement on the dividend payable account during the year was as follows:
Mar 2013 Dec 2012
N’000 N’000
Balance, beginning of year 473,942 533,081
Dividend declared (Note 25) 177,792
Dividend paid (202,660)
Unclaimed dividend written back (Note ( b)) (34,271)
Balance, end of year 473,942 473,942
.
(a)
(b)
Unclaimed dividend amounting to N 309.779 million was held by the Company's registrar as at the year end (2011: N 301.875
These are collateral deposits paid by dealers who maintain credit facilities with the Company. These amounts are refundable to the
This represents write back to retained earnings of unclaimed dividend exceeding a period of twelve (12) years from date of
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
17 Trade and other Payables
Creditors and accruals comprise:
Mar 2013 Dec 2012
N’000 N’000
Trade and other creditors 19,253,931 8,435,992
Accruals 1,600,008 2,662,679
Due to joint venture partners -
Advances received from Customers - 1,429,200
Bridging allowance 258,519 464,806
Amounts due to related parties 2,680,926 1,146,307
Pension payable 4,115 4,333
Other liabilities 700,380 37,360
24,497,879 14,180,677
18 Deferred tax
The movement in deferred tax account was as follows:
Mar 2013 Dec 2012
N’000 N’000
Balance, beginning of year (6,238,600) (6,399,889)
Charge/(credit):
- Recognised in other comprehensive income (1,596)
- Recognised in the profit and loss account - 162,886
Balance, end of year (6,238,600) (6,238,600)
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
19 Provision for Long Term Employee Benefits
Provision for long term employee benefits comprises:
Mar 2013 Dec 2012
N’000 N’000
Provision for gratuity (Note 20 (a)) - 201,250
Provision for long term employee benefits (Note 20 (b)) 232,247 17,165
232,247 218,415
20 Share capital
Mar 2013 Dec 2012
N’000 N’000
Authorized share capital:
271,657,230 ordinary shares of 50 kobo each
(2010: 271,657,230) ordinary shares of 50 kobo each 135,829 135,829
Issued and fully paid
253,988,672 ordinary shares of 50 kobo each 126,994 126,994
21 Retained Earnings
The movement in retained earnings account was as follows:
Mar 2013 Dec 2012
N’000 N’000
Balance, beginning of year 18,927,016 18,861,691
Net impact of prior year adjustments (Note 26 (a)) - 3,725
Transfer from profit and loss account (271,966) 205,121
Prior year dividend declared (Note 19) - (177,792)
Unclaimed dividend written back (Note 19) - 34,271
Balance, end of year 18,655,050 18,927,016
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
22 Operating Profit before Working Capital Changes
Operating profit before working capital changes comprise
Mar 2013 Dec 2012
N’000 N’000
Profit after tax (271,966) 178,727
Adjustments: 200,028
- Taxation -
- Interest income (5,848) (149,051)
- Withholding Tax Credit notes utilized - (58,211)
- Interest expense and similar charges (34,481) 1,358,196
Operating profit (312,295) 1,529,689
Adjustments for items not involving movement of cash:
- Depreciation 326,679 1,476,481
- Ammortisation 249 31,301
- Gain/Loss on disposal of fixed assets - 15,875
- Bad debt provision - -
- Other long term employee benefit charge - (158,133)
- Gratuity charge - 97,152
14,633 2,992,365
23 Working capital changes
Working capital changes comprise:
Mar 2013 Dec 2012
N’000 N’000
Increase in stocks (4,208,814) 3,962,457
(Increase)/decrease in amounts due from related parties - -
Increase in debtors and prepayments 3,487,113 13,841,961
Increase in creditors and accruals 4,665,185 (9,881,038)
(Increase)/decrease in amounts due from related parties - -
Security deposit 0 687,984
3,943,484 8,611,364
24 Ultimate Holding Company
The Company is a subsidiary of Corlay Global S.A. of Panama. The ultimate parent of the Company is MRS Holdings Limited,
incorporated in Nigeria.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
25 Segment reporting
Business Segments
The Company has three reportable business segments as described below:
Segment Description
Retail/ C&I
Aviation This involves the sale of Aviation Turbine Kerosene (ATK).
Lubes
Information regarding each reportable business segment is as shown below:
Revenue
Mar 2013 Dec 2012
N’000 N’000
Retail/ C&I 16,413,025 67,146,616
Aviation 2,234,186 10,120,921
Lubes 529,694 2,459,812
19,176,905 79,727,349
Cost of sales
Mar 2013 Dec 2012
N’000 N’000
Retail/ C&I 15,263,757 62,419,474
Aviation 2,097,662 9,304,720
Lubes 392,034 2,291,293
17,753,453 74,015,487
Depreciation
Mar 2013 Dec 2012
N’000 N’000
Retail/ C&I 175,890 1,050,904
Aviation 10,138 165,883
Lubes 29,949 259,694
215,977 1,476,481
This segment manufactures and sells lubricants and greases.
This segment is responsible for the sale and distribution of petroleum products (white products)
in retail outlets and to industrial customers.
MRS Oil Nigeria Plc
(formerly Chevron Oil Nigeria Plc)
Financial Statements - 31 March 2013
Interest expense
Mar 2013 Dec 2012
N’000 N’000
Retail/ C&I 29,079 966,713
Aviation 4,335 152,594
Lubes 1,067 238,889
34,481 1,358,196
Profit before tax
Mar 2013 Dec 2012
N’000 N’000
Retail/ C&I (224,653) 317,410
Aviation (10,634) 50,876
Lubes (36,679) 10,469
(271,966) 378,755
26 Post balance sheet events
There are no significant post balance sheet events which could have a material effect on the state of affairs of the Company as at 31
March 2013.
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