Profit and Loss Account - Nigerian Stock Exchange OIL NIGERIA PLC - Q1 RESULTS... · profit and loss account. Debts deemed bad are written off to the profit and loss account. Turnover

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



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



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



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



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



(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



(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



(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



(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



(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



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



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



(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



(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



(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



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



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


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:



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



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



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


Dividend declared (Note 25) 177,792

Dividend paid (202,660)

Unclaimed dividend written back (Note ( b)) (34,271)


.

(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



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



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



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



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



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.

Documents

Profit and Loss Account - Nigerian Stock Exchange OIL NIGERIA PLC - Q1 RESULTS... · profit and loss account. Debts deemed bad are written off to the profit and loss account. Turnover