…As Corporation Reduces Loss By 99.7% In 2019
The Nigerian National Petroleum Corporation, NNPC, has brought down operational losses by 99 per cent, returning key subsidiaries to profitability.
The Corporations 2019 Audited Financial Statement which was just released in Abuja showed a 99.7 per cent reduction in its loss profile from ₦803bn in 2018 to ₦1.7bn in 2019.
The report is coming barely five months after it published its 2018 Audited Financial Statement.
Details of the report showed that majority of the subsidiaries of the Corporation posted improved performance.
The report said that the Nigerian Petroleum Development Company Limited (NPDC) recorded ₦479Billion profit in 2019 compared to ₦179Billion in 2018 representing 167 per cent increase while the Integrated Data Sciences Limited (IDSL) recorded ₦23Billion profit in 2019 compared to ₦154Million in 2018 representing 14966 per cent increase and the Petroleum Products Marketing Company (PPMC) recorded ₦14.2Billion profit in 2019 compared to ₦9.3Billion in 2018 representing 52 per cent increase.
However, the Refineries maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimization drive.
A statement by the Corporation’s spokesman, Dr. Kennie Obateru, quoted the NNPC Chief Financial Officer (CFO), Mr. Umar Ajiya, as saying that the 2019 Audited Financial Statement, which was concluded five months after the release of the 2018 Audited Financial Statement, will be published on the Corporation’s website for all to see in keeping with Management’s commitment to transparency and accountability and in consonance with the principles of the Extractive Industries Transparency Initiative (EITI) of which it is a partner.
Giving further insight into the 2019 AFS, the CFO disclosed that general administrative expenses also witnessed a 22 per cent dip from ₦894bn in 2018 to ₦696bn in 2019.
The CFO explained that the improved performance in the 2019 financial year was driven mainly by cost optimization, contracts renegotiation and operational efficiency. He said “the 2019 AFS goes further to demonstrate our unwavering commitment to the principle of Transparency, Accountability and Performance Excellence (TAPE) while the outlook for 2020 looks promising in view of the Management’s strong drive to prune down running cost and grow revenues.”
It would be recalled that the Group Managing Director of NNPC, Mallam Mele Kyari, had promised to sustain the publication of the Corporation’s Audited Financial Statement as part of efforts to deepen transparency and accountability and keep stakeholders abreast of NNPC operations.