€¦ · XLS file · Web view · 2017-11-08Exp by nature Directors fees Sheet1 Sheet2 2a....

MRS Oil Nigeria Plc

2nd Quarter 2017 Financial Statements

MRS Oil Nigeria PlcFinancial Statements - 30 June 2017

Contents Page

Corporate information 1

Statement of directors’ responsibilities 2

Statement of financial position 3

Statement of profit or loss and other comprehensive income 4

Statement of changes in equity 5

Statement of cash flows 6

Index to notes to the financial statements 7

Notes to the financial statements 8


1

Corporate informationRC 6442

Board of directors Alhaji Sayyu I. Dantata ChairmanMr. Andrew O. Gbodume Managing Director (Ag.)

Non Executive DirectorDr. Paul Bissohong Non Executive DirectorDr. Samaila M. Kewa Non Executive DirectorAlhaji Dahiru Barau Mangal Non Executive Director Mr. Lawal Mangal Alternate DirectorMs. Amina Maina Non Executive Director Mr. Mattew Akinlade Non Executive Director Sir. Sunday Nnamdi Nwosu Non Executive Director Mr. Amobi Daniel Nwokafor Non Executive Director

Registered office 8, Macarthy StreetOnikanLagos

Company secretary Mrs. O.M. Jafojo8, Macarthy StreetOnikanLagos

Registrar Cardinal Stone Securities (Registrars) Limited(formerly City Securities (Registrars) Limited)358, Herbert Macaulay StreetYabaLagos

Auditor KPMG Professional ServicesKPMG TowerBishop Aboyade Cole StreetVictoria IslandLagos

Principal bankers Access Bank PlcFirst Bank of Nigeria LimitedFirst City Monument Bank PlcSkye Bank PlcStandard Chartered Bank Nigeria LimitedSterling Bank PlcUnity Bank PlcZenith Bank Plc

Leadership team Andrew O. Gbodume Oghenekaro OlogeManaging Director (Ag.) Information Technology Manager

Oluwakemi M. Jafojo Timipiri OduCompany Secretary Human Resources Manager

Kamil Bello Andrew Onum Finance Manager (Ag.) Chief Legal Counsel

Peter Z. Dia Abdullahi MasanawaAviation Manager Operations Manager

Tara Ajibulu Moruf SobowaleSales & Marketing Manager Consumer & Industrial Manager

Michael Ayewa Adebayo OlusodoHealth, Safety and Enviroment Manager Engineering/Marketing Support Manager

Jubril Hassan Jah'swill OmoluTreasury Manager Procurement Manager

Daniel Chukwuazawom Ismaila AlabiChief Internal Auditor Lubes Operation Manager

Mr. Patrice Alberti


2

Statement of directors’ responsibilities in relation to the financial statements for the period ended 3

The directors accept responsibility for the preparation of the 2nd quarter 2017 financial statements t

The directors further accept responsibility for maintaining adequate accounting records as required b

The directors have made an assessment of the Company’s ability to continue as a going concern and h

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:

Signature Signature

Mr. Andrew Gbodume (Managing Director, Ag.) Mr. Paul Bissohong (Director)Name Name

FRC/2012/ICAN/00000000534 FRC/2013/IOD/00000003841FRC FRC

Date Date


3

Statement of financial position as at 30 ###

Notes June 2017 December 2016

AssetsProperty, plant and equipment 12 18011525.2821 18402454###Intangible assets 13 22838 29920###Prepayments 30 687773 578073###Trade and other receivables 15 347922 347922###Total non-current assets 19070058.2821 19358369###

Inventories 17 6184116 7004173###Loans and receivables 14 357102 445193###Trade and other receivables 15 47364176 43244878###Witholding tax receivables 16 53583 68287.92419###Prepayments 30 396928 333130###Cash and cash equivalents 18 1212722 10910784###Total current assets 55568627### 62006445.92419###

Total assets 74638685.2821 81364814.92419######

Equity ###Share capital 19 126994 126994###Retained earnings 22740318 22036847.11###

###Total equity 22867312### 22163841.11###

###Liabilities ###

Employee benefit obligations 20 16891 13891.24483###Deferred tax liabilities 11(d) 5116904 5116904###Total non-current liabilities 5133795 5130795.24483###

Security deposits 21 1954111 1766967###Dividend payable 22(a) 410296 411317.54237###Trade and other payables 23 33726637 32156838###Short term borrowings 24 9288137 18526556###Tax payable 11(c) 1258397 1208500.16906###Total current liabilities 46637578 54070178.71143###

Total liabilities 51771373### 59200973.95626######

Total equity and liabilities 74638685### 81364815.06626###

Approved by the Board of Directors on ____________2017 and signed on its behalf by: ###

###

###

₦’000 ₦’000

)Mr. Andrew Gbodume (Managing Director, Ag.)FRC/2012/ICAN/00000000534

) Dr. Paul Bissohong (Director) FRC/2013/IOD/00000003841

) Chief Financial Officer FRC/2013/ICAN/00000000951


4

The notes on pages 7 to 41 are an integral part of these financial statements.


4

Statement of profit or loss and other comprehensive income for the Period ended 30

Notes April - June 2017 Cumm. YTD June 20 April - June 2016 Cumm. YTD June 2016

Revenue 5 24898986 62480435 28705903 53777025Cost of sales 7(b) -22930976 -57910047 -25125962 -48441380

Gross profit 1968010 4570388 3579941 5335645

Other income 6 34331 100765 463590 845240Selling and distribution expenses 7(b) -326009 -706705 -577901 -785794Administrative expenses 7(b) -1368966 -2733846 -1342577 -2647488

Operating profit 307366 1230602 2123053 2747603

Finance income 8 6890 95102 123863 293379Finance costs 8 175219 -191073 -1336261 -1503839

Net finance costs 8 182109 -95971 -1212398 -1210460

Profit before income tax 9 489475 1134631 910655 1537143

Income tax expense 11(a) -186001 -431160 -364272### -627397###

Profit for the Period 303474 703471 546383 909746

Total comprehensive income for the period 303474 703471 546383 909746

Earnings per share (EPS) Basic and diluted earnings per share (Naira) 10(a) 1.19483281522099 2.7696943683402 2.15121007146315 3.581836810923


₦’000 ₦’000 ₦’000 ₦’000


5

Statement of changes in equityfor the period ended 30 June

Notes Share capital Retained earnin Total equity₦’000 ₦’000 ₦’000

Balance as at 1 January 2016 126994 20850330 20977324Total comprehensive income: Profit for the period 0 909746 909746Other comprehensive income 0 0 0

Total comprehensive income for the period 0 909746 909746

Transactions with owners of the CompanyContributions and DistributionsDividends declared 22(a) 0 0Unclaimed dividend written back 22(a) 0 0 0

Total transactions with owners of the Company 0 0 0

Balance as at 30 June 2016 126994 21760076 21887070

Notes Share capital Retained earnin Total equity

₦’000 ₦’000 ₦’000Balance as at 1 January 2017 126994 22036847 22163841Total comprehensive income: Profit for the period 0 703471 703471

Total comprehensive income 0 703471 703471

Transactions with owners of the CompanyContributions and DistributionsDividends declared 22(a) 0 0 0

Total transactions with owners of the Company 0 0 0

Balance as at 30 June 2017 126994 22740318 22867312

*


Included in retained earnings is ₦14.40 billion (2016: ₦14.40 billion) which represents revaluation surplus on Property, plant and equipment transferred at IFRS transition date. The Company has opted not to distribute this amount.

MRS Oil Nigeria PlcFiancial Statements - 30 June 2017

6

Statement of cash flows for the period ended 30

Notes June 2017 June 2016 March 2016Cash flows from operating activities:Profit after tax 703471 909746

Adjustments for:Depreciation 12(a) 760021.5179 785657.06Amortisation of intangible assets 13 7082 1024 Loss on DisposalFinance income 8 -95102 -293379 NBVFinance costs 241197 114843 ProceedsGain on sale of property, plant and equipment 9(a) -3964.8 0 LossWrite off of property, plant and equipment 12 0 0Provision/(Write-back) for long-term service award 20 3000 3000Impairment loss on trade receivables and Truck lease 7 0 0Impairment loss on non-current assets 7 0Impairment loss on employee and other receivables 7 -1141 -500Net increase in impairment loss on inventory 17 0 0Tax expense 11(a) 431160 627397

2045723.7179 2147788.06Changes in: - Inventories 820057 1516197###- Trade, other receivables and prepayments -4276950.07581001 -17785498###- Security deposits 187144 76888###- Trade and other payables 1569800 5304462###Cash (used)/ generated from operating activities 345774.642089992 -8740162.94

Income taxes paid 11(c) -356637 -412849.91059###Withholding tax credit notes utilised 11(c) -24626 0###Long-term service award paid 20 0 -344###

Net cash (used)/ generated from operating activities -35489 -9153356.85059

Cash flows from investing activities:Proceeds from sale of property, plant and equipment 4906 0Purchase of property, plant and equipment 12(a) -370034 -244673Purchase of intangible assets 13 0 -829Amounts paid on behalf of transporters 14 -44049.9 -54448.179

Principal repayment received on amounts advanced to transporte 14 132140.5 127396.15162Interest received 8 95102 273763

Net cash (used)/ generated from investing activities -181935.4 101208.97262

Cash flows from financing activities:Short term borrowing repayment -12520149 10327146Dividends paid 22(b) -1021.54236999998 -4398Interest paid -241197 -114843

Net cash generated in financing activities -12762367.54237 10207905

Net change in cash and cash equivalents -12979791.94237 1155757.12203Cash and cash equivalents at 1 January 10910784 19774397Effect of movements in exchange rates on cash held 0

Cash and cash equivalents at 30 18 -2069007.94237 20930154.12203


CASH FLOW WORKSHEET

Finance Cost:Interest expense a 203527Bank Charges b 37670Interest Paid c=a+b 241197Effect of movements in exchange rates on cash held d 0Finance cost e=c+d 241197

Property, plant and equipmentCost on disposal f 0Accum. Dep on disposal g 0NBV h=f+g 0Proceeds on sale of PPE i #REF!Gain on disposal j=h+i #REF!

Trade and other receivables2013

Prepayments - non current 578073Trade and other receivables - non current 347922Trade and other receivables - current 43244878Prepayments - current 333130

l 44504003

2014Prepayments - non current 687773Trade and other receivables - non current 347922Trade and other receivables - current 47364176Prepayments - current 396928

l 48796799

m=k-l -4292796Impairment loss on trade receivables and Truck lea less: 0Impairment loss on employee and other receivable less: #VALUE!

Net changes Trade, other receivables and prepayments #VALUE!

Trade and other payables2013

Trade and other payables n 321568382014Trade and other payables o 33726637Net changes in Trade payables z=n-o -1569799

2013Inventories n2 7004173

2014Inventories 6184116Reversal of impairment loss 0

n2 6184116

Changes in Inventories z=n2-n -820057

2014short term borrowings p 6006407

Net Repayment on Short-Term Borrowings q=n:p 12520149

2013short term borrowings p 18526556

Effects of exchange rate on cash and cash equivalent

USDOpening balance of cash and cash equiv (USD) 789 167.5 year-end rate x 132157.5

2014 transactions 2062.4174 193 Average rate y 397304.0879

Closing balance (calculated) z=x+y 529461.5879

closing balance of cash equiv @ year end spot rate 2851.4174 196.5 year-end rate 560303.5191

Effect of movements in exchange rates on cash held 30841.93116


7

Index to Notes to the financial statements for the period ended 30 June 2017

Page

1 Reporting entity 82 Basis of preparation 83 Significant accounting policies 94 Standards and Interpretations not yet effective 185 Revenue 216 Other income 217 Expenses by nature 218 Finance income and costs 229 Profit before income tax 22

10 Earnings per share (EPS) and dividend declared per share. 2311 Income Taxes 2412 Property, plant and equipment 2613 Intangible assets 2714 Loans and receivables 2715 Trade and other receivables 2816 Witholding tax receivables 2917 Inventories 2918 Cash and cash equivalents 2919 Share capital 3020 Employee benefit obligations 3021 Security deposits 3022 Dividends 3123 Trade and other payables 3124 Short term borrowings 3225 Financial risk management & financial instruments 3226 Related party transactions 3827 Segment reporting 4028 Subsequent events 4029 Contingencies 4130 Prepayments 41

Notes to the financial statements


8

1. Reporting entity

The Company was incorporated as Texaco Nigeria Limited (a privately owned Company) on 12 August 1969

On 20 March, 2009 there was an acquisition of Chevron Africa Holdings Limited, (a Bermudian Company)

The new management of the Company announced a change of name of the Company from Chevron Oil Niger

The Company is domiciled in Nigeria and has its registered office address at:

The Company is principally engaged in the business of marketing and distribution of refined petroleum p

2 Basis of preparation

(a) Statement of compliance

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for recognition of the fS/N Items Measurement bases

1 Property, plant and equipment Refer to Note 3 (c)2 Inventories Refer to Note 3 (f)3 Other long-term employee benefits Refer to Note 3 (h)4 Loans and borrowings Refer to Note 3 (b)

(c) Functional and presentation currency

These financial statements are presented in Nigerian Naira, which is the Company’s functional currency.

8, Macarthy StreetOnikanLagos Nigeria

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) and in the manner required by the Companies and Allied Matters Act of Nigeria and the Financial Reporting Council of Nigeria Act, 2011.The financial statements were authorised for issue by the Company's Board of Directors on 24 July 2017. Details of the Company's significant accounting policies are included in Note 3.



9

(d) Use of judgements and estimates ###

The preparation of annual financial statements in conformity with IFRS requires management to make jud

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are reco

i Judgements, assumptions and estimation uncertainties

Information about judgements, assumptions and estimation uncertainties that have a significant risk of rNote 12(b) - Impairment test- recoverable amounts are higher than carrying amounts.Note 15(b) - Recoverability of foreign exchange differential and interest on PSF receivables.Note 20(d) - Measurement of employee benefits obligations; key actuarial assumptions.Note 25(a) - Recoverability of trade and other receivables.

Note 29(a) - Recognition of contingencies: key assumptions about the likelihood and magnitude of an o

ii Measurement of fair values

3 Significant accounting policies

Some of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. The Chief Financial Officer has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports to the Board of Directors through the Managing director. The Chief Financial Officer regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Chief Financial Officer assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Board of Directors.When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).•Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.



10

The accounting policies set out below have been applied consistently to all periods presented in these f

(a) Foreign currency transactions

Transactions denominated in foreign currencies are translated and recorded in Nigerian Naira at the actua

Foreign currency differences arising on translation are recognized in profit or loss. Non-monetary items

(b) Financial instruments

The Company classifies non-derivative financial assets into loans and receivables.The Company classifies non-derivative financial liabilities into the other financial liabilities category.

i. Non-derivative financial assets and financial liabilities - recognition and derecognition

The Company initially recognises loans and receivables on the date when they are originated. Financial liab

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset ex

Financial assets and financial liabilities are offset and the net amount presented in the statement of fina

ii Non-derivative financial assets - measurement

The Company has only loans and receivables, trade and other receivables, cash and cash equivalents as n

Loans and receivables

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash balances with banks and call deposits with orig

The Company initially recognizes loans and receivables at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method.

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.Short term receivables that do not attract interest are measured at original invoice amount where the effect of discounting is not material.



11

iii Non-derivative financial liabilities - measurement

(c) Property, plant and equipment (PPE)

i Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulat

Cost includes expenditure that is directly attributable to the acquisition of the asset. Property, plant a

Purchased software that is integral to the functionality of the related equipment is capitalized as part o

If significant parts of an item of property, plant and equipment have different useful lives, they are a

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing t

ii Subsequent expenditure

The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying a

iii Depreciation

Depreciation is calculated to write off the depreciable amount, which is the cost of an asset, or other amo

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of

Non-derivative financial liabilities are initially recognized at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. The Company has the following non-derivative financial liabilities: loans and borrowings, trade and other payables.Short term payables that do not attract interest are measured at original invoice amount where the effect of discounting is not material.



12

The estimated useful lives for the current and comparative periods are as follows:

Land and Buildings: - Leasehold Land Lease period - Buildings 10 to 25 yearsPlant and Machinery 10 to 20 yearsFurniture and Fittings 5 years Automotive equipment 4 to 10 years

Computer equipment 3 years

Office equipment 5 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted

Capital work-in-progress is not depreciated. The attributable cost of each asset is transferred to the rel

(d) Intangible assets

Intangible assets that are acquired by the Company and have finite useful lives are measured at cost lThe Company’s intangible assets with finite useful lives comprise acquired software.

Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the

Amortisation of intangible assets

Amortisation is calculated over the cost of the asset, or other amount substituted for cost, less its resid

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted i

(e) Leases

i Determining whether an arrangement contains a lease

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lea



13

ii Leased assets

Assets held by the Company under leases that transfer to the Company substantially all of the risks and r

Assets held under other leases are classified as operating leases and are not recognised in the Company's

iii Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the te

Minimum lease payments made under finance leases are apportioned between the finance expense and the re

(f) Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories includes

The basis of costing inventories are as follows:

Product Type Cost Basis

Weighted average costs incurred (for regulated products reduced by the va

First in First Out (FIFO)

Packaging materials , lubrica Weighted average cost

Inventories-in-transit Purchase cost incurred to date

Net realisable value is the estimated selling price in the ordinary course of business, less the estimate

(g) Impairmenti Non-derivative financial assets

Financial assets not classified at fair value through profit or loss are assessed at each reporting date tObjective evidence that financial assets are impaired includes:

. default or delinquency by a debtor;

. restructuring of an amount due to the Company on terms that the Company would not consider

Refined petroleum products (i) ( AGO, ATK, PMS , DPK)

Refined petroleum product (ii)( LPG)



14

. indications that a debtor or issuer will enter bankruptcy;

. adverse changes in the payment status of borrowers or issuers;

. the disappearance of an active market for a security; or

. observable data indicating that there is measurable decrease in expected cash flows from a groupfinancial assets

The Company considers evidence of impairment for these assets at both an individual asset and collective l

In assessing collective impairment, the Company uses historical information on timing of recoveries and t

An impairment loss is calculated as the difference between an asset's carrying amount and the present va

ii Non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than

For impairment testing, assets are grouped together into the smallest group of assets that generates cas

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recov

Impairment losses are recognised in profit or loss. An impairment loss is reversed only to the extent t

(h) Employee benefitsi Defined contribution plan

A defined contribution plan is a post-employment benefit plan (pension fund) under which the Company pay



15

ii Other long-term employee benefits

The Company’s other long-term employee benefits represents a Long Service Award scheme instituted for

iii Termination benefits

Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer

iv Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the

A liability is recognized for the amount expected to be paid under short-term cash bonuses if the Compan

(i) Provisions and contingent liabilitiesProvisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive

A provision for restructuring is recognised when the Company has approved a detailed and formal restru

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company

In line with the provisions of the Pension Reform Act 2014, the Company has instituted a defined contribution pension scheme for its permanent staff. Employees contribute 6% each of their basic salary, transport and housing allowances to the Fund on a monthly basis. The Company’s contribution is 12% of each employee’s basic salary, transport and housing allowances. Staff contributions to the scheme are funded through payroll deductions while the Company’s contribution is recognised in profit or loss as employee benefit expense in the periods during which services are rendered by employees.



16

Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose existence will be

Contingent liabilities are only disclosed and not recognised as liabilities in the statement of financial posi

(j) Revenue

Revenue from the sale of non-regulated products in the course of ordinary activities is measured at the

Revenue for regulated products is measured at the regulated price of the products. The timing of the t

(k) Finance income and finance costs

Finance income comprising of interest income on funds invested, foreign currency gain on financial assets

Finance costs comprises interest expense on borrowings, bank charges, foreign currency loss on financial asForeign currency gains and losses are reported on a net basis.

(l) Income tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in pr

i Current tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using t



17

The Company offsets the tax assets arising from WHT credits and current tax liabilities if, and only if, th

ii Deferred tax

Deferred tax is recognised in profit or loss except to the extent that it relates to a transaction that is r

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when t

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and l

(m) Earnings per share (EPS)

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS

(n) Segment reporting

(o) Statement of cash flows

The statement of cash flows is prepared using the indirect method. Changes in statement of financial posit

(p) Government grants

Petroleum Products Pricing Regulatory Agency (PPPRA) subsidies which compensate the Company for losse

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. All operating segments’ operating results are reviewed regularly by the Managing Director to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Segment results that are reported to the Managing Director include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.



18

(q) Joint arrangement

The Company’s joint arrangement is in respect of its interests in joint aviation facilities held with othe

(r) Share capital

4(a) Standards and Interpretations not yet effective (but available for early adoption)

Effective for the financial year commencing 1 January 2018

• Classification and measurement of Share-based Payment Transactions (Amendments to IFRS 2)• Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4)

• Transfers of Investment Property (Amendments to IAS 40)

• Annual improvements to IFRSs 2014 - 2016 Cycle

Effective for the financial year commencing 1 January 2019

Standard available for optional adoption

The Company has only one class of shares, ordinary shares. Ordinary shares are classified as equity. When new shares are issued, they are recorded in share capital at their par value. The excess of the issue price is recorded in the share premium reserve.Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects are recognised as a deduction from equity.

• IFRS 15 Revenue from Contracts with Customers• IFRS 9 Financial Instruments

• IFRIC 22 Foreign currency transactions and advance consideration

• IFRS 16 Leases

• Sale or contribution of Assets between an investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

All Standards and Interpretations will be adopted at their effective date (except for those Standards and Interpretations that are not applicable to the entity).

Classification and measurement of Share-based Payment Transactions (Amendments to IFRS 2), Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4), Recognition of deferred Tax Assets for Unrealised Losses (Amendments to IAS 12), Transfers of Investment Property (Amendments to IAS 40), Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4), Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) are not applicable to the business of the entity and will therefore have no impact on future financial statements.



19

IFRS 15 Revenue from contracts with customers

IFRS 9 Financial Instruments

Disclosure Initiative (Amendments to IAS 7)

IFRIC 22 Foreign currency transactions and advance consideration

The interpretation applies when a Company:• pays or receives consideration in a foreign currency; and

• recognises a non-monetary asset or liability – eg. non-refundable advance consideration – before reco

This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC-31 Revenue – Barter of Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. This new standard will most likely have a significant impact on the Company, which will include a possible change in the timing of when revenue is recognised and the amount of revenue recognised.

The Company is yet to carry-out an assessment to determine the impact that the initial application of IFRS 15 could have on its business; however, the Company will adopt the standard for the year ending 31 December 2018.

On 24 July 2014, the IASB issued the final IFRS 9 Financial Instruments Standard, which replaces earlier versions of IFRS 9 and completes the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement.

IFRS 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39.

The Company is yet to carry-out an assessment to determine the impact that the initial application of IFRS 9 could have on its business; however, the Company will adopt the standard for the year ending 31 December 2018.

The amendments provide for disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flow and non-cash changes. This inlcudes providing a reconciliation between the opening and closing balances arising from financing activities.

The Company will adopt the amendments for the year ending 31 December 2017.

The amendments provide guidance on the transaction date to be used in determining the exchange rate for translation of foreign currency transactions involving an advance payment or receipt.

The amendments clarifies that the transaction date is the date on which the Company initially recognises the prepayment or deferred income arising from the advance consideration. For transactions involving multiple payments or receipts, each payment or receipt gives rise to a separate transaction date.



20

The Company will adopt the amendments for the year ending 31 December 2018.



21

For the lessor, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordi

The Company is yet to carry out an assessment to determine the impact that the initial application of

4(b) The following Standards and amendments to Standards applicable to the business of the entity and whic• Disclosure Initiative (Amendments to IAS 1)• Accounting for Acquisition of Interests in Joint Operations (Amendments to IFRS 11)

• Clarification of Acceptable Methods of Depreciation and Amortistion (Amendments to IAS 16 and• Equity Method in Separate Financial Statements (Amendments to IAS 27)• Annual Improvements to IFRSs 2012-2014 Cycle - various standards

• Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and

IFRS 16 Leasees

IFRS 16 replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 eliminates the classification of leases as operating leases or finance leases as required by IAS 17 and introduces a single lessee accounting model. Applying that model, a lessee is required to recognise:

a. assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value; andb. depreciation of lease assets separately from interest on lease liabilities in the profit or loss.



21

5 Revenue June 2017 June 2016₦’000 ₦’000

Premium Motor Spirit (PMS) 33997423 44999191Aviation Turbine Kerosene (ATK) 5588263 3259430Automotive Gas Oil (AGO) 11367322 3125973Lubricants and greases 1960965 1457211Dual Purpose Kerosene (DPK) 9566462 935220

0 062480435 53777025

6 Other income June 2017 June 2016₦’000 ₦’000

Rental and lease income (Note 6(a)) 5115 8681Sundry income (Note 6(b)) 22788 482103Gain on sale of property, plant & equipment 3965 0Income on storage services 68897 354456

Total 100765 845240

(a) Rental and lease income relates to income earned on assets that are on lease (finance and operating leases) to third parties. Assets on lease include filling

(b) Sundry income represents service fees for handling and other fees earned in the delivery of products.

7(a) Expenses by nature June 2017 June 2016₦’000 ₦’000

Depreciation 760021.5179 785657Amortization of intangible assets 7082 1024Changes in inventories of lubes, greases and refined products 57919144 48439649Rental of service stations, buildings and equipment 115972 115505Advertising expense 197979 193456Consultancy expense 200098 156458Maintenance expense 338107 177814Throughput expense 34370 32907Freight expense 192050 477518Management fees (Note 26 (c)) 166184 367451Director's remuneration 1250 1250Employee benefit expense (Note 9 (b)) 373211 297668Auditor's remuneration 20760 15000Impairment loss on employee and other receivables 0 -500Impairment loss/write back on trade receivables 0 0Write off of other receivables -1141 0Write off of property, plant & equipment 0 0Local and international travel 81811 88289Office expenses and supplies 173172 73031Communication and postage 165969 85974Fines and penalties 6218 2449Insurance premium 82108 64780Contract labour 293219 285404Sponsorships and donations 19841 8446Licenses and Levies 31990 34581Utilities 16053 22843Subcriptions 3795 2449Board meetings and AGM expenses 54196 22297Security 26011 21859Other expenses 71127 101403Total cost of sales, selling and distribution and administrative expenses 61350597.5179 51874662

Liquidified Petroleum Gas (LPG)



22

7(b) Expenses by functionJune 2017 June 2016₦’000 ₦’000

Cost of sales 57910047 48441380Selling and distribution expenses 706705 785794Administrative expenses 2733846 2647488

61350598 51874662

8 Finance income and finance costs June 2017 June 2016₦’000 ₦’000

Finance incomeInterest income on short-term bank deposits 90443 273763PPPRA reimbursement on interest and foreign exchange differential (a) 0 0Interest income on loans to transporters (Note 14) 4659 19616Total finance income 95102 293379

Finance costInterest expense 203527 72054Bank charges 37670 42789Net foreign exchange loss/(Gain) -50124 1388996Total finance costs 191073 1503839

Net finance costs 95971 1210460

(a)

9 Profit before income tax June 2017 June 2016 (a) Profit before income tax is stated after charging/(crediting):

₦’000 ₦’000Depreciation (Note 12) 760022 785657Amortisation of intangible assets (Note 13) 7082 1024Management fees (Note 26(c)) 166184 367451Director's remuneration (Note 9(b)(iv)) 1250 1250Employee benefit expense (Note 9(b)(i)) 373211 297668Auditor's remuneration 20760 15000Gain on disposal of property, plant and equipment -3965 0Write off of property, plant and equipment 0 0PPPRA reimbursement on interest and foreign exchange differential 0 0Net foreign exchange loss (Note 8) -50124 1388996

(b) Directors and employees

i Employee costs during the period comprise:June 2017 June 2016₦’000 ₦’000

Salaries and wages 273620 185234Other employee benefits 71218 88553Employer's pension contribution 25373 20881Other long term employee benefit charge 3000 3000

373211 297668

ii The average number of full-time persons employed during the period (other than executive directors) was as follows:

This amount represents net interest / foreign exchange differential cost claims received from PPPRA arising from delayed subsidy payments relating to products imported.



23

NumberJune 2017 June 2016

Administration 52 19Technical and production 23 2Operations and distribution 25 27Sales and marketing 32 33

132 81

iii Higher-paid employees of the Company and other than directors, whose duties were wholly or mainly discharged in Nigeria, NumberJune 2017 June 2016

₦ ₦2000001 3000000 3 73000001 4000000 45 394000001 5000000 54 85000001 6000000 9 96000001 7000000 5 97000001 8000000 6 58000001 9000000 3 -9000001 10000000 4 -

Above 10000000 3 4

132 81

iv Directors' remuneration for directors of the Company charged to profit or loss account are as follows:June 2017 June 2016₦’000 ₦’000

Fees 1000 1000Other emoluments 250 250 1250 1250

The directors' remuneration shown above includes:

Chairman 0 0

Highest paid director 1250 1250

Other directors received emoluments in the following ranges: Number

June 2017 June 2016₦ ₦Nil 2 2

1000001 2000000 1 12000001 3000000 1 1

10 Earnings per share (EPS) and Dividend declared per share(a) Basic EPS

Basic earnings per share of ₦2.77 (June 2016: ₦3.58 ) is based on profit attributable to ordinary shareholders of ₦703,47

June 2017 June 2016

Profit for the period attributable to shareholders (expressed in Naira) 703471000 909746000Weighted average number of ordinary shares in issue 253988672 253988672Basic earnings per share (expressed in Naira per share) 2.76969439014981 3.58183690963981



24

(b) Diluted Earnings per share

The Company had no dilutive ordinary shares to be accounted for in these financial statements. Consequently, diluted and b

11 Income taxesIncome tax expense

The tax charge for the period has been computed after adjusting for certain items of expenditure and income, which are no

(a) Amounts recognized in profit or lossJune 2017 June 2016₦’000 ₦’000

Current tax expense:Income tax 408467 596654Tertiary education tax 22693 30743Capital gains tax 0 0Prior year under-provision 0 0

431160 627397Deferred tax expense:Origination and reversal of temporary differences 0 0

Tax expense on operations 431160 627397

(b) Reconciliation of effective tax ratesThe tax on the Company's profit before tax differs from the theoretical amount as follows:

% June 2017 % June 2016

Profit before income tax 1134631 1537143

Income tax using the statutory tax rate 35.9999859 408467 38.8157770617308 596654

Effect of:Impact of capital gains tax 0 0 0Impact of tertiary education tax 2.000033491### 22693 2.00000910780585 30743Effect of tax incentives 0 0 0 0Non deductible expenses 0### 0 0 0Tax exempt income 0 0 0 0Changes in estimates related to prior year 0 0 0 0Prior year under-provision 0### 0 0 0Other differences 0### 0 0 0

Total income tax expense in income state 38.00001939 431160 40.8157861695366 627397

(c) Movement in current tax liability

June 2017 June 2016₦’000 ₦’000

Balance at beginning of the period 1208500 991830Payments during the period -356637 -701883Net provision for the period 431160 1016638Withholding tax credit notes utilized -24626 -98085

1258397 1208500

The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many

25

MRS Oil Nigeria PlcNotes to the financial statements for the year ended 31st December, 2013

1. Reporting entity

The Company was incorporated as Texaco Nigeria Limited (a privately owned Company) on 12 August 1969 and was converted to a Public Li

On the 20 March, 2009 there was an acquisition of Chevron Africa Holdings Limited, (a Bermudian Company) by Corlay Global SA of Moffson B

The new management of the Company announced a change of name of the Company from Chevron Oil Nigeria Plc to MRS Oil Nigeria Plc (“

The Company is domiciled in Nigeria and has its registered office address at:

The Company is principally engaged in the business of marketing and distribution of refined petroleum products, blending of lubricants an

2 Basis of preparation

(a) Statement of compliance

(b) Basis of measurementThe financial statements have been prepared on the historical cost basis except for defined benefit obligations (Note 20).

(c) Functional and presentation currency

These financial statements are presented in Nigerian naira, which is the Company’s functional currency. All financial information present

(d) Use of estimates and judgements

The preparation of annual financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in

(i) Judgements:

information about judgements made in applying accounting policies that have the most significant effects on the amounts recognized in t

(ii) Assumptions and estimation uncertainties

Information about assupmtions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year eNote 25 - Impairment test, key assumptions underlying recoverable amounts.Note 29 - Measurement of deferred benefits obligations; key actuarial assumptions.

3 Significant accounting policiesThe accounting policies set out below have been applied consistently to all periods presented in these financial statements. The compan

(a) Foreign currency transactions

Transactions denominated in foreign currencies are translated and recorded in Nigerian Naira at the actual exchange rates as of the date of

Foreign currency differences arising on retranslation are recognized in profit or loss, except for qualifying cash flow hedges, which are r

(b) Financial instruments

i. Non-derivative financial assets

The Company initially recognizes loans and receivables on the date that they are originated. All other financial assets (including assets de

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Comp

The Company has the following non-derivative financial assets: financial assets at fair value through profit or loss, loans and receivables.


Cash and cash equivalents comprise cash on hand; cash balances with banks and call deposits with original maturities of three months or

Financial assets at fair value through profit or loss

A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon ini


Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are rec

8, Macarthy StreetOnikanLagos Nigeria

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs).

The financial statements were authorised for issue by the Board of Directors on __________ . Details of the company's accounting policies are included in Note 3.

26


ii Non-derivative financial liabilities

All financial liabilities (including liabilities designated at fair value through profit or loss) are recognized initially on the trade date at The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the CompThe Company has the following non-derivative financial liabilities: loans and borrowings, trade and other payables.

Such financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recogni

iii Share capitalThe Company has only one class of shares, ordinary shares. Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effects.

(c) Property, plant and equipment

i Recognition and measurement

Items of property, plant and equipment are measured at cost or deemed cost less accumulated depreciation and accumulated impairment los

Cost includes expenditure that is directly attributable to the acquisition of the asset. Property, plant and equipment under construction are

Purchased software that is integral to the functionality of the related equipment is capitalized as part of the equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major com

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the

ii Subsequent costs

The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable

iii Depreciation

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, p

The estimated useful lives for the current and comparative periods are as follows:

- Land and Buildings- Leasehold Land Lease period- Buildings 10 to 25 years

- Plant and Machinery 10 to 20 years

- Furniture and Fittings 5 years

- Automotive equipment 4 years

- Computer and office equi 3 years

Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.

Capital work-in-progress is not depreciated. The attributable cost of each asset is transferred to the relevant asset category immediately th

(d) Intangible assets

Intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortisation and

The Company’s intangible assets with finite useful lives comprise acquired software.

Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific intangible asset to which

Amortisation of intangible assets

Amortisation is calculated over the cost of the asset, or other amount substituted for cost, less its residual value. Amortisation is recogniz

(e) Leases

Leased assets

Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon in

Other leases are operating leases and the leased assets are not recognized in the Company’s statement of financial position.

Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives

Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liabili

27


Determining whether an arrangement contains a lease

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. This will be the case if the fthe fulfilment of the arrangement is dependent on the use of a specific asset or assets; and the arrangement contains a right to use the asset(s).

At inception or on reassessment of the arrangement, the Company separates payments and other consideration required by such an arrangement

(f) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories includes expenditure incurred in acquiring

The basis of costing inventories are as follows:

Product Type Cost Basis

White Petroleum Products ( AGO, ATK, PMS , DPK) Weighted Average Cost of costs incurred (for deregulated products) and reduced value of subsidies due for deregulated products.

Packaging Materials , Lubricants and Greases First in , First Out

Inventory-in-transit Purchase cost incurred to date

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling e

(g) Impairmenti Non-derivative financial assets (including receivables)

A financial asset not carried at fair value through profit or loss, including an equity accounted investee, is assessed at each reporting date

Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restruct

The Company considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant recei

In assessing collective impairment the Company uses historical trends of the probability of default, timing of recoveries and the amount of

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount

ii Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than inventories are reviewed at each reporting date to determine whethe

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In asses

The Company’s corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may be impaired,

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no l

(h) Employee benefits

i Defined contribution plan

A defined contribution plan is a post-employment benefit plan (pension fund) under which the Company pays fixed contributions into a separ

In line with the provisions of the Pension Reform Act 2004, the Company has instituted a defined contribution pension scheme for its per

ii Defined benefit plan

The Company currently operates one gratuity scheme which is a defined benefit scheme for certain employees.

The Company’s net obligation in respect of defined benefit scheme is calculated by estimating the amount of future benefit that employees h

The recognised liability is determined by an independent actuarial valuation every year using the projected unit credit method. HR Nigeri

· ·

28


iii Other long-term employee benefits

The Company’s other long-term employee benefits represents Long Service Awards scheme instituted for all permanent employees. The Company

iv Termination benefits

Termination benefits are recognized as an expense when the Company is committed demonstrably, without realistic possibility of withdrawa

v Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under short-term cash bonuses if the Company has a present legal or constructi

(i) Provisions and contingent liabilities

Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated r

A provision for restructuring is recognised when the Company has approved a detailed and formal restructuring plan, and the restructuri

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the

Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence o

Contingent liabilities are only disclosed and not recognised as liabilities in the statement of financial position.

If the likelihood of an outflow of resources is remote, the possible obligation is neither a provision nor a contingent liability and no disclos

(j) Revenue

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receiv

If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction of

(k) Rental income

Rental income is recognized in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are recognized as

(l) Finance income and finance costs

Finance income comprises interest income on funds invested and changes in the fair value of financial assets at fair value through profit or l

Finance costs comprise interest expense on borrowings, bank charges, unwinding of the discount on provisions and impairment losses recognize

Foreign currency gains and losses are reported on a net basis.

(m) Income and deferred tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates statutorily enacted at the

Deferred tax is recognised in profit or loss account except to the extent that it relates to a transaction that is recognised directly in equity.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that ha

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting

(n) Earnings per share (EPS)

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profi

29


(o) Segment reporting

(p) Loans and borrowings

Loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Loans and borrowings are subsequently state

Loans and borrowings, for which the Company has an unconditional right to defer settlement of the liability for at least 12 months after the s

(q) Statement of cash flows

The statement of cash flows is prepared using the indirect method. Changes in statement of financial position items that have not resulted i

(r) Government Grants

Petroleum Products Pricing Regulatory Agency (PPPRA) subsidies which compensate the Company for losses made on importation of certain

(s) Jointly Controlled Assets

Jointly controlled assets refers to the Company’s interests in joint aviation facilities held with other parties. These financial Statements

4 New standards and interpretations not yet adopted

5 Determination of fair values

A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financia

(i) Trade and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of intere

(ii) Non-derivative financial instruments

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. All operating segments’ operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Segment results that are reported to the Board of Directors include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2013, and have not been applied in preparing these financial statements. Those which may be relevant to the Company are IFRS 11 Joint Arrangement, IFRS 13 Fair Value Measurement and IFRS 9 Financial Instruments, which is expected to impact the classification and measurement of financial assets. These standards will become mandatory for the Company’s 2013 financial statements except for IFRS 9 which is mandatory for the 2015 financial statements. The extent of the impact has not been determined and the Company does not plan to adopt these standards early.

MRS Oil Nigeria Plc.Annual Report -- 31 December 2015

40


(d) Recognised deferred tax assets and liabilitiesDeferred tax assets and liabilities are attributable to the following:

Assets Liabilities Net2015 2014 2015 2014 2015 2014

Property, plant and equipment 0 0 -5494533 -5783712 -5494533 -5783712Employee benefits 3785 4892 0 0 3785 4892Impairment loss 137106 106164 0 0 137106 106164Inventories 8800 17628 0 0 8800 17628Net unrealised exchange difference 32743 133118 0 0 32743 133118

182434 261802 -5494533 -5783712 -5312099 -5521910

The Company does not have any unrecognized deferred tax assets or liabilities

(e) Movement in temporary differences during the year

Balance Recognized in Balance Recognized in Balance41640 profit or loss 42004 profit or loss 42369

Property, plant and equipment -6068376 284664 -5783712 289179 -5494533Employee benefits 4662### 230 4892 -1107 3785Impairment loss 71348### 34816 106164 30942 137106Inventories 24163### -6535 17628 -8828 8800Net unrealised exchange difference -13416### 146534 133118 -100375 32743

N’000 N’000 N’000 N’000 N’000 N’000

N’000 N’000 N’000 N’000 N’000

MRS Oil Nigeria Plc.Annual Report -- 31 December 2015

41

-5981619 459709 -5521910 209811 -5312099

MRS Oil Nigeria PlcAnnual Report -- 31 December 2015

41


12 Property, Plant and Equipment(a) The movement on these accounts was as follows:

Leasehold Land & BPlant & MachinAutomotive Equ Computer & Offic Furniture & Fitti Capital Work in Pr Total

CostBalance at 1 January 2014 14438612 10149259 1646343### 775767### 191302 373103 27574386Additions 19773### 233974 111434 42628 12882 117175 537866Transfers 34981 254311 75311 25362 0 -389965 0Write-off -85500 -85500Disposals 0 0 -18022 0 0 0 -18022

Balance as at 31 December 201 14493366### 10552044 1815066### 843757### 204184 100313 28008730 Depreciation and impairment losses

Balance as at 1 January 2014 1502999 2796338 1100939 655686 167155 0 6223117Charge for the year 293544 999625 227372 63274 6096 0 1589911Disposal 0 0 -16682 0 0 0 -16682

Balance as at 31 December 201 1796543 3795963 1311629 718960 173251 0 7796346

N’000 N’000 N’000 N’000 N’000 N’000 N’000


MRS Oil Nigeria PlcFinancial Statements - 31 March 2017

25

(d) Recognised deferred tax assets and liabilitiesDeferred tax assets and liabilities are attributable to the following:

Assets Liabilities Net42916 42735 42916 42735 42916 42735

₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000Property, plant and equipment 0 0 -5188135 -5188135 -5188135 -5188135Employee benefits 4445 4445 0 0 4445 4445Impairment loss 131269 131269 0 0 131269 131269Inventories 19382 19382 0 0 19382 19382Net unrealised exchange difference 0 0 -83865 0 -83865 -83865

155096 155096 -5272000 -5188135 -5116904 -5116904

The Company does not have any unrecognized deferred tax assets or liabilities

(e) Movement in temporary differences during the period

Balance Recognized in Balance Recognized in Balance42370 profit or loss 42735 profit or loss 42916

₦’000 ₦’000 ₦’000 ₦’000 ₦’000Property, plant and equipment -5494533 306398 -5188135 0 -5188135Employee benefits 3785 660 4445 0 4445Impairment loss 137106 -5837 131269 0 131269Inventories 8800 10582 19382 0 19382Net unrealised exchange difference 32743 -116608 -83865 0 -83865

-5312099 195195 -5116904 0 -5116904



26

12 Property, Plant and Equipment(a) The movement on these accounts was as follows:

Leasehold Land Building Plant & Machiner Automotive EquipmeComputer & OffFurniture & FitCapital Work in P Total₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000

CostBalance as at 1 January 2016 8460233 6108018### 10770226 1913021### 864556### 210101 79828 28405983Additions 605509 11420 217615 68195 17558 8735 44400 973432Transfers 0 -21827 -79017 -142322 -2148 -1095 0 -246409Disposal 0 -124000 -808772 -1608 -3805 0 -938185Balance as at 31 December 2016 9065742 6097611### 10784824### 1030122### 878358### 213936### 124228### 28194821 Cost 56926.62Balance at 1 January 2017 9065742 6097611### 10784824 1030122### 878358### 213936 124228 28194821Additions 29023 57924 33587 187659 43402 4276 14163 370034Write off 0 0 0 0 0 0Disposal 0 0 -672 -13780.2 0 -14452.2

Balance as at 30 June 2017 9094765 6155535### 10817739 1204000.8### 921760### 218212 138391### 28550402.8 Accumulated depreciation and impairment

Balance as at 1 January 2016 439808 1650503 4831360 1506204 743354 181049 0 9352278Charge for the period 86476 232441 1033403 102581 32757 10776 0 1498434Write off -7678 -46211 -135206 -2041 -679 0 -191815Disposal 0 -55741 -805587 -1527 -3675 0 -866530Balance as at 31 December 2016 526284 1875266### 5762811### 667992### 772543### 187471### 0 9792367

Accumulated depreciation and impairment

Balance as at 1 January 2017 526284 1875266 5762811 667992 772543 187471 0 9792367Charge for the period 0 122724.5179 553633 59509 21109 3046 0 760021.5179Write off 0 0 0 0 0 0 0Disposal 0 0 -628 -12883 0 0 0 -13511

Balance as at 30 June 2017 526284 1997990.5179 6315816 714618 793652 190517 0 10538877.5179

Carrying amountsBalance as at 30 June 2017 8568481 4157544.4821 4501923 489382.8 128108 27695 138391### 18011525.2821Balance as at 31 December 2016 8539458 4222345 5022013 362130 105815 26465 124228 18402454



27

(b) Impairment assessment

The carrying amount of the Company's net assets exceeded its market capitalization as at 2016 year end. As a result of t

(d) Capital commitmentsCapital expenditure commitments at the period end authorised by the Board of Directors comprise:

June 2017 December 2016₦’000 ₦’000

Capital commitments 775075 393422.822

13 Intangible assets

Intangible assets relate to the Company's accounting, software application package and license. The movement on these a

June 2017 December 2016₦’000 ₦’000

CostBalance as at 1 January 276683 234088Additions 0 42595Balance as at 30 June 276683 276683

Accumulated amortisationBalance as at 1 January 246763 232944Charge for the period (Note 7(a)) 7082 13819Balance as at 30 June 253845 246763

Carrying amount 22838 29920

14 Loans and receivablesJune 2017 December 2016₦’000 ₦’000

Balance as at 1 January 445193 606985Insurance 44049.9 54448Interest accrued (Note 14(a)) 4659 26095Principal and interests repayments received during the period -136799.5 -180755Impairment on Truck lease (Note 14(b)) 0 -61580Balance as at 30 June 357102 445193

(a) Interest income earned with respect to these loans was ₦4.66 million (Dec. 2016: ₦26.10 million) and has been included as



28

(b) The movement in the allowance for impairment in respect of loans and receivables during the period was as follows:June 2017 December 2016₦’000 ₦’000

Balance as at 1 January 61579.515 0Impairment loss recognised 0 61579.515Balance as at 30 June 61579.515 61579.515

15 Trade and other receivables June 2017 December 2016₦’000 ₦’000

Trade receivables (Note 15(a)) 5916685 5295575Petroleum Equalisation Fund (PEF) 4509004 2972340Petroleum Support Fund (PSF) (Note 15(b) 16142156 12229750Loans to employees 58125 35466Due from joint operation partners 39596 30670Receivables from registrar 70812 70812.40087Receivables from related parties 20396313 20035831Advances paid to suppliers 434330 2713092Other debtors 145077 209263.59913

47712098 43592800###Less: non-current portion -347922 -347922Current portion 47364176 43244878

For receivables that are classified as 'current', due to their short-term maturities, the fair value approximates their carryin

(a) Trade receivables June 2017 December 2016₦’000 ₦’000

Gross trade receivables 6497758.03131 5876648###Impairment -581073 -581073###Net trade receivables 5916685.03131 5295575

The Company, entered into an arrangement with some of its transporters to provide tankers to them. The transporters are to repay the Company the cost of the tankers plus an interest of 17% per annum. The transporters were expected to repay their obligations to the Company from freight costs charged to the Company for services rendered. The repayment periods range from 12 to 24 months. The transporters made a 20% contribution at the commencement of the arrangement. The outstanding balance on the receivable from the transporters are secured by the Company's retention of title to the tankers. Legal title will only be passed to the transporters once they have settled the outstanding balance.In addition, in 2015, the arrangement was revised and the interest on outstanding payments was increased to 20% per annum and the tenor was extended for another 12 months and the insurance payments on the trucks for the current period was included as part of the new principal amount. The Company did not record any impairment during the period. (Dec. 2016: N61.58 million) in respect of certain transporters whose recoverables are doubtful of recovery. On the basis of retention of title as well as historical payment behaviours of the respective transporters (including continuing business as of date, repayments during the year and adequate insurance cover on the tankers), the Company believes that the outstanding balances are recoverable.



29

(b) Included in the Petroleum Support Fund is an amount of ₦14.52 billion (Dec. 2016: ₦10.98 billion) receivable from Petro

The Company's exposure to credit risk and impairment losses related to trade and other receivables are disclosed in Note

16 Witholding tax receivablesThe movement on the witholding tax receivable account was as follows:

June 2017 December 2016₦’000 ₦’000

Balance at 1 January 68287.92419 32348###Additions 9921.07581 134024.75513###Withholding tax credit note utilised -24626 -98084.83094###Balance at 30 June 53583 68287.92419

17 InventoriesJune 2017 December 2016₦’000 ₦’000

Premium Motor Spirit (PMS) 1400768 2780005Lubricants and greases 2282958 1898422Aviation Turbine Kerosene (ATK) 2011623 1863232Automotive Gas Oil (AGO) 34561 71301Dual Purpose Kerosene (DPK) 323485 261669Packaging materials and other sundry items 130721 129544Goods in Transit 0 0

6184116### 7004173###

Inventory amounting to ₦315.99 million (Dec. 2016 : ₦315.99 million) was held in a facility owned by MRS Oil and Gas Limit###

The value of changes in products, packaging materials and work-in-progress included in cost of sales amounted to ₦57.92 bi

June 2017 December 2016₦’000 ₦’000

Gross inventory 6262321 7082378Impairment -78205 -78205Net inventory 6184116 7004173

18 Cash and cash equivalents ###June 2017 December 2016###₦’000 ₦’000 ###

Cash at bank and on hand 912219 2059224Short term deposits with banks 300503 8851560Cash and cash equivalents in the statement of financial position 1212722 10910784Bank overdrafts used for cash management purposes (Note 24) -3281730 0Cash and cash equivalents in the statement of cash flows -2069008 10910784



30

19 Share capital

June 2017 December 2016Authorised: ₦’000 ₦’000271,657,230 Ordinary shares of 50k each 135828.615 135828.615

Issued and fully paid:253,988,672 Ordinary shares of 50k each 126994 126994.3362

Issued and fully allotted:253,988,672 Ordinary shares of 50k each 126994 126994.3362

All ordinary shares rank equally with regard to the Company's residual assets. Holders of these shares are entitled to div

20 Employee benefit obligations

(a) The amounts outstanding at the end of the period with respect to employee benefit obligations is shown below:

June 2017 December 2016₦’000 ₦’000

Year end obligations for:Other long term employee benefits 16891 13891.24483Total employee benefit liabilities 16891 13891.24483

(b) The movement on the provision for other long term employee benefits is as follows:

June 2017 December 2016₦’000 ₦’000

Balance as at 1 January 13891 12618Provision for the period : 3000 0Current service cost 0 4582Interest cost 0 1418Discontinued benefits due to contract change 0 0Remeasurement gains (net) 0 -3176###Benefits paid by the employer 0 -1551Balance as at 30 June 16891 13891

21 Security depositsJune 2017 December 2016₦’000 ₦’000

Security deposits 1954111 1766967

These are collateral deposits paid by dealers who maintain credit facilities with the Company. These amounts are set-off o



31

The Company's exposure to liquidity risks related to security deposits is disclosed in Note 25 (b).



32

22 Dividends(a) Declared dividends

The following dividends were declared and paid by the Company during the period.June 2017 December 2016₦’000 ₦’000

xx kobo per qualifying ordinary share (Dec. 2016: ₦1.10 kobo) 0 279387.539

June 2017 December 2016₦’000 ₦’000

xx kobo per qualifying ordinary share (2015: 173 kobo) 0 439772

Dividend payableJune 2017 December 2016₦’000 ₦’000

Balance as at 1 January 411317.54237 399889Declared dividend 0 279388Payments -1021.54237 -267959.45763Unclaimed dividend written back to retained earnings (see 22(i) below) 0 0Balance as at 30 June 410296 411317.54237

(i) Unclaimed dividends transferred to retained earnings represents dividends which have remained unclaimed for over twelve

(ii) As at 30 June 2017, dividend payable held by the Company amounted to ₦410.30 million (Dec. 2016: ₦340.51 million). The b

23 Trade and other payablesJune 2017 December 2016₦’000 ₦’000

Trade payables 9090546 8303391Accrued expenses 554861 602618Amounts due to joint arrangement partners 260042 134381Advances received from customers 921679 644551Bridging allowance 3364593 4023064Amounts due to related parties 19187553 18029888Pension payable (Note 23(a)) 903 9903Statutory deductions (Note 23(b)) 346460 409042

33726637 32156838

(a) The balance on the pension payable account represents the amount due to Pension Fund Administrators which are yet to

June 2017 December 2016₦’000 ₦’000

Balance as at 1 January 9903 752Contributions during the Period 45683 73736Payments during the period -54683 -64585



33

Balance as at 30 June 903 9903



34

(b) This represents statutory deductions which are mandated by law or statute. They include Value Added Tax (VAT) and Withhold

24 Short term borrowingsJune 2017 December 2016₦’000 ₦’000

Bank overdraft (Note 18 and Note 24(a)) 3281730 0Bank borrowings (Import Finance and Short term Facilities) 6006407 18526556###Total Borrowings 9288137 18526556

(a) Interest rates on these overdraft ranged between 19% to 23.5% per annum (Dec. 2016: 18% to 20%). Where the fixed deposit

The fair value of current borrowings closely approximates their carrying amount, as the impact of discounting is not signifi

(c) Reconciliation of short term borrowings received to statement of cashflows is as follows:June 2017 December 2016₦’000 ₦’000

Changes in borrowings 0 2126090Repayments 12520149 28099488Exchange loss on borrowings 0 -10172195

12520149 20053383

25 Financial Risk Management & Financial Instruments

The Company has exposure to the following risks from its use of financial instruments:

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, polic

Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management f

The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set ap

· Credit risk· Liquidity risk· Market risk



35

The Company’s Audit Committee oversees how management monitors compliance with the Company’s risk management polici

(a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to me

Trade and other receivables

Management has credit policies in place and the exposure to credit risk is monitored on an ongoing basis by an establish

The Credit Committee reviews each customer’s credit limit in line with the customers’ performance, feedback from sales

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they

The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade an

The maximum exposure to credit risk for trade and other receivables at the reporting date by type of counterparty was:

June 2017 December 2016₦’000 ₦’000

Trade receivables5836137.82649 3735012

661620.20481999 2141636-581073 -581073

5916685.03131 5295575###20396313 2003583120651160 15202090

313610 34621247277768.03131 40879708

* Excludes advances paid to suppliers and withholding tax receivables###

- Major customers- Others- Impairment

- Due from related parties- Due from regulators (Government entities)- Others*



36

All the Company's trade receivables are due from customers within Nigeria.

As at period, the aging of trade receivables that were not impaired was as follows:June 2017 December 2016₦’000 ₦’000

Neither past due nor impaired 3388592 3161740.66512###Past due 0-30 days 44896 838519.92535Past due 31-90 days 599990 18924Past due 91 days and above 1883207 1276389.81481###

5916685 5295574.40528###

The movement in the allowance for impairment in respect of trade receivables during the period was as follows:

June 2017 December 2016₦’000 ₦’000

Balance as at 1 January 581073.485 423154Impairment loss recognised 0 342609.485Bad debt written-off 0 0Reversal of impairment losses 0 -184690Balance as at 30 June 581073.485 581073.485

The Directors have applied judgement in the Company's assessment of the recoverability of its trade and other receivable

Due from Government entities

This comprises amount due from PPPRA with respect to subsidies/PSF receivable on imported products as well as amounts

Determination of amounts due are based on existing regulations/ guidelines and impairment is only recognized when changes

Due from related parties

The Company has transactions with its parent and other related parties who are related to the Company by virtue of bei

Other receivables

Other receivables includes staff debtors and other sundry receivables. The Company reviews the balances due from this ca


Loans receivable comprise amounts loaned to some of the Company's transporters. See Note 14. All the transporters still c



37


The Company held cash and cash equivalents of ₦1.21 billion as at 30 June 2017 (Dec 2016: ₦10.91 billion), which repres###

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financia

The Company has a clear focus on ensuring sufficient access to capital to finance growth and to refinance maturing debt

Typically the credit terms with customers are more favourable compared to payment terms to its vendors in order to help p

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding

Notes Carrying amount Contractual cash fl 6 months or less₦’000 ₦’000 ₦’000

Non-derivative financial liabilities

30 June 2017Overdraft and other short-term borrowings 24 9288137 9288137 9288137Dividend payable 22 410296 410296 410296Trade and other payables* 23 32458498 32458498 32458498Security deposits 21 1954111 1954111 1954111

44111042 44111042 44111042

31 December 2016Overdraft and other short-term borrowings 24 18526556 18526556 18526556Dividend payable 22 411318 411318 411318Trade and other payables* 23 31103245 31103245 31103245Security deposits 21 1766967 1766967 1766967

51808086 51808086 51808086

* Excludes advances received from customers and tax liabilities

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices wi

The Company manages market risks by keeping costs low through various cost optimization programs. Moreover, market d



38

Currency risk

The Company is exposed to currency risk on sales and purchases and borrowings that are denominated in a currency other tha

In managing currency risk, the Company aims to reduce the impact of short-term fluctuations on earnings. The Company ha

The following significant exchange rates were applied during the period

Average rate Reporting date spot rate

June 2017 Dec. 2016 2015June 2017 Dec. 2016

₦ ₦ ₦ ₦

US Dollar 305.2093495935 252.69 305.4 304.5

Interest rate risk profile

In managing interest rate risk, the Company aims to reduce the impact of short-term fluctuations in earnings. Dividend p

At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was:

Carrying amount

June 2017 December 2016

₦’000 ₦’000

Fixed rate instruments

Bank overdraft and borrowings 9288137 18526556

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefo

(c) Capital risk management

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to

The Company’s adjusted net debt to equity ratio at the end of the reporting period was as follows:

June 2017 December 2016₦’000 ₦’000

Total borrowings (Note 24) 9288137 18526556Less: Cash and cash equivalents (Note 18) -1212722 -10910784Adjusted net debt 8075415 7615772Total equity 22867312 22163841.11Total capital employed 30942727 29779613.11



39

Adjusted net debt to equity ratio 0.3531422932437 0.3436124614954

There were no changes in the Company's approach to capital management during the period.

The Company is not subject to externally imposed capital requirements.

(d) Fair valuesFair values versus carrying amounts

The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It does not incl

The Company's financial instruments are categorised as follows:

Carrying amountLoans and Other financial Totalreceivables liabilities

30 June 2017 ₦’000 ₦’000 ₦’000

Financial assets not measured atTrade and other receivables 47277768.0313 0 47277768.03131Loans and receivables 357102 0 357102Cash and cash equivalents 1212722 0 1212722

48847592.0313 0 48847592.03131

Financial liabilities not measuredShort term borrowings 0 9288137 9288137Trade and other payables 0 32458498 32458498Security deposits 0 1954111 1954111Dividend payable 0 410296 410296

0 44111042 44111042

Carrying amountLoans and Other financial Totalreceivables liabilities

31 December 2016 ₦’000 ₦’000 ₦’000

Financial assets not measured atTrade and other receivables 40879708 0 40879708Loans and receivables 445193 0 445193Cash and cash equivalents 10910784 0 10910784

52235685 0 52235685

Financial liabilities not measuredShort term borrowings 0 18526556 18526556Trade and other payables 0 31103245 31103245Security deposits 0 1766967 1766967Dividend payable 0 422746.08474 422746.08474

0 51819514.08474### 51819514.08474

Trade and other receivables, security deposits, bank overdrafts and other short term borrowings are the Company’s short t



40

26 Related party transactions

(i) Parent and ultimate controlling entity

As at the year ended 30 June 2017, MRS Africa Holdings Limited (incorporated in Bermuda) owned 60% of the issued share c

The Company entered into the following transactions with the under-listed related parties during the period:

(a) MRS Oil and Gas Limited (MOG)

MOG is a wholly owned company of MRS Holdings Limited which is a shareholder in Corlay Global SA. Corlay Global SA

Nature of transactions June 2017 December 2016₦’000 ₦’000

Sales of goods 0 18464237.72282Staff Secondment -122784 -219723Other services 0 0Reimbursements for expenses 0 0Purchase of goods -624022 0

The value of products stored by MRS Oil and Gas Limited for the Company amounting to ₦315.99 million (Dec 2016: ₦3

Net balance due from MRS Oil and Gas Limited was ₦5.62 billion (Dec. 2016: ₦6.23 billion).

(b) Petrowest SA (Petrowest)

Patrice Albert is Non-executive director on the Board of MRS Oil Nigeria Plc. He is also a director in Petrowest SA. TJune 2017 December 2016

Nature of transactions ₦’000 ₦’000

Purchase of goods 0 -17140228.33133Goods in transit 0 0

Net balance due to Petrowest was ₦4.36 billion (Dec. 2016: ₦4.15 billion)

(c) MRS Holdings Limited

MRS Holdings Limited owns 50% of the shares in Corlay Global SA, the parent company of MRS Africa Holdings Limited.

June 2017 December 2016Nature of transactions ₦’000 ₦’000

Management fees -166184 -275500Sale of goods 82527 111607Shared services 0 32567

Net balance due to MRS Holdings Limited was ₦1.33 million (Dec. 2016: ₦27.52 million)



41

(d) Net balances due (to)/from other related entities were as follows:June 2017 December 2016₦’000 ₦’000

MRS Benin 42158 41940.60925Corlay Togo -8473 -3921.079995Corlay Benin 2962 344.09932Corlay Cote D'Ivoire -86199 -86164.1342725Corlay Cameroun -941 3770.1750075Others 0 0Total -50493 -44030.33069

The Corlay entities are subsidiaries of Corlay Global SA incorporated in Panama, the parent company of MRS Africa Holdings

All outstanding balances do not bear interest and exclude value of products stored by MRS Oil and Gas Limited for the C

(e) Summary of intercompany receivables and payables:June 2017 December 2016Receivables Payables Receivables Payables₦’000 ₦’000 ₦’000 ₦’000

MRS Oil and Gas Limited (MOG) 17689660 -12069743 17566745.930805 -11338952.55801MRS Holdings Limited 2661533 -2662860 2423029.641155 -2450550.675708Petrowest 0 -4359337 0 -4150300.018645MRS Benin 42158 0 41940.60925 0###Corlay Togo 0 -8473 0 -3921.079995Corlay Benin 2962 344.09931999997 0Corlay Cote D'Ivoire 0 -86199 0 -86164.1342725Corlay Cameroun 0 -941 3770.1750074999 0Other 0 0 0 0

20396313 -19187553 20035830.455538### -18029888.46663######

(ii) Key management personnel compensationThe Company pays short term benefits to its directors as follows:

June 2017 December 2016₦’000 ₦’000

Short term employee benefits 1250 1928

The managing director is seconded from a related party (MRS Oil and Gas Limited) as part of the management fees agr

(iii) Related Party Transactions above 5% of total tangible assets

In line with Nigerian Stock Exchange - Rules Governing Transactions with Related Parties or Interested Persons, the Compan



42

June 2017 December 2016₦’000 ₦’000

MRS Oil and Gas Limited ( See Note 26(a) above) -746806 18244514.72282Petrowest SA ( See Note 26(b) above) 0 -17140228.33133

MRS Holdings Limited (See note 26 ( c ) above -83657 -131326

27 Segment reporting

In accordance with the provisions of IFRS 8 – Operating Segments, the operating segments used to present segment informa

Segment information is provided on the basis of product segments as the Company manages its business through three pr

The Company has identified three operating segments:

(i)

(ii)

(iii)

Segment assets and liabilities are not disclosed as these are not regularly reported to the Chief Operating decision maker.

Segment revenue and cost of sales

June 2017Revenue Cost of sales Gross profit

% of Total % of Total % of TotalRetail/C&I 54931207 87.91745288 51796783 89.4435174608 3134424 68.58113578103Aviation 5588263 8.944020636 5053834 8.72704178603 534429 11.69329606152Lubes 1960965 3.138526484 1059430 1.82944075317 901535 19.72556815745Total 62480435 100 57910047 100 4570388 100

June 2016Revenue Cost of sales Gross profit₦’000 % of Total ₦’000 % of Total ₦’000 % of Total

Retail/C&I 49060384 91.2292638 44680277 92.2357641339 4380107 82.09142474809Aviation 3259430 6.061008395 2739431 5.65514648839 519999 9.745757073418Lubes 1457211 2.709727807 1021672 2.10908937772 435539 8.162818178496Total 53777025 100 48441380 100 5335645 100

28 Subsequent events

There are no significant subsequent events that could have had a material effect on the financial position of the Company

Retail/ Commercial & Industrial - this segment is responsible for the sale and distribution of petroleum products (refined products) to retail customers and industrial customers.

Aviation - this segment involves the sale of Aviation Turbine Kerosene (ATK).

Lubricants - this segment manufactures and sells lubricants and greases.

₦’000 ₦’000 ₦’000



43

29 Contingencies

(a) Pending litigations and claims

(b) Financial commitments

The Directors are of the opinion that all known liabilities and commitments, which are relevant in assessing the state of

30 PrepaymentsJune 2017 December 2016₦’000 ₦’000

Operating leases 801275 698114Other prepayments 283426 213089

1084701 911203

The Company leases a number of offices, buses, warehouses and service stations under both cancellable and non-cancellable

June 2017 December 2016₦’000 ₦’000

Non-current portion 687773 578073Current portion 396928 333130

1084701 911203

June 2017 December 2016₦’000 ₦’000

Opening balance 911203 643494Addition 419279 706747Release to P&L -245781 -439038Closing balance 1084701 911203

There are certain lawsuits and claims pending against the Company in various courts of law which are being handled by external legal counsels. The total claims in respect of pending litigations amounted to ₦19 billion as at 30 June 2017 (Dec. 2016: ₦19 billion). In the opinion of the directors and based on independent legal advice, the Company’s liabilities are not likely to be material, thus no provision has been made in these financial statements.

The

Other National Disclosures

MRS Oil Nigeria Plc.Annual Report

31 December 2016

65

Other National Disclosures

Value added statementFor the year ended 31

December 2016 % December 2015 %₦’000 ₦’000

Revenue 62480435 87099216###Bought in materials and services

- Imported -36036491 -36036491- Local -24573789 -48736549

1870155 2326176Other income 100765 1445209

Finance income 95102 1730525

Value added by operating activities 2066022 100 5501910 100

Distribution of Value Added

To Government as:Taxes and duties 431160 21 525218 10

To Employees:Salaries, wages, fringe and end of service benefits 373211 18.1 548710 10

To Providers of Finance:- Finance cost 191073 9.25 1880203 34

Retained in the BusinessTo maintain and replace: - Property, plant and equipment 760022 37 1555932 28 - Intangible assets 7082 0 56222 1Proposed dividend 0 0 279388 5To augment retained earnings 303474 14.7 656237 12

Value added 2066022 100 5501910 100

MRS Oil Nigeria Plc.Annual Report

31 December 2016

66

Other National DisclosuresFinancial summary

Statement of comprehensive income2016 2015 2014 2013 2012

₦’000 ₦’000 ₦’000 ₦’000 ₦’000Revenue 24898986 28705903 92325405 87786323 79727349Results from operating activities 307366 2123053 2431918 -1092618 1587900Profit before taxation 489475 910655 1282053 1407143 378755Profit for the year 303474 546383 746404 634418 205121Comprehensive income for the year 303474 546383 746404 634418 208846

RatiosEarnings per share (Kobo) 119.4832815 215.121007 293.872555 249.782006 80.759901Declared dividend per share (Kobo) 110 88 74.93 23.34 69.9999723Net assets per share (kobo) 9003.280272 8726.31088 7960.24517 7728.3553 7501.91331

Statement of financial position

31 Dec 2016 31 Dec 2015 31 Dec 2014 31 Dec 2013 31 Dec 2012Employment of Funds ₦’000 ₦’000 ₦’000 ₦’000 ₦’000Property, plant and equipment 18011525.28### 18402454 20212384 21351269 22013568Intangible assets 22838### 29920 57366 81320 140560Loans and receivables 0 0 0 655229 0Trade and other receivables 347922### 347922 2044 5361 7507Prepayment 687773### 578073 297014 303594 236673Net current assets 8931049### 7936267.21 5187530 3229534 3112717Employee benefit obligation -16891 -13891.2448 -16307 -15541 -218415Deferred tax liability -5116904 -5116904 -5521910 -5981619 -6238600

Net assets 22867312.28 22163841 20218121 19629147 19054010

Funds EmployedShare capital 126994 126994 126994 126994 126994Retained earnings 22740318 22036847.1 20091127 19502153 18927016

22867312 22163841.1 20218121 19629147 19054010

Date post:	28-Apr-2018
Category:	Documents
Upload:	tranminh
View:	216 times
Download:	2 times

€¦ · XLS file · Web view · 2017-11-08Exp by nature Directors fees Sheet1 Sheet2 2a....

Documents