Barely five months after publishing its 2018 Audited Financial Statement, the Nigerian National Petroleum Corporation (NNPC) has released its 2019 Audited Financial Statement with a 99.7% reduction in its loss profile from ₦803bn in 2018 to ₦1.7bn in 2019.
A statement by NNPC’s spokesman, Dr. Kennie Obateru, quoted the NNPC Chief Financial Officer, 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 & in consonance with the principles of the Nigeria Extractive Industries Transparency Initiative of which it is a partner.
Giving further insight into the 2019 AFS, the CFO disclosed that general administrative expenses also witnessed a 22% dip from ₦894bn in 2018 to ₦696bn in 2019.
According to Ajiya, majority of the subsidiaries posted improved performance namely, the Nigerian Petroleum Development Company Limited (NPDC) which recorded ₦479Billion profit in 2019 compared to ₦179Billion in 2018 representing 167% increase; the Integrated Data Sciences Limited (IDSL) recorded ₦23Bn profit in 2019 compared to ₦154Mn in 2018 representing 14966% increase; the Petroleum Products Marketing Company (PPMC) recorded ₦14.2Bn profit in 2019 compared to ₦9.3Bn in 2018 representing 52% increase while the Refineries have maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimization drive.
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 & Performance, Excellence while the outlook for 2020 looks promising in view of Management’s strong drive to prune down running cost & grow revenues”