By Obas Esiedesa
The Nigerian National Petroleum Corporation (NNPC) has released its 2019 Audited Financial Statement with key subsidiaries recording rise in profits for the year.
The new financial statement came barely five months after publication of its 2018 Audited Financial Statement.
The Corporation in a statement by its Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru in Abuja on Thursday said the state owned National Oil Company recorded 99.7 percent reduction in its overall loss profile from N803 billion in 2018 to N1.7 billion in 2019.
Dr. 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 percent dip from N894 billion in 2018 to N696bn in 2019.
According to him, majority of the subsidiaries posted improved performance namely, the Nigerian Petroleum Development Company Limited (NPDC) which recorded N479 billion profit in 2019 compared to N179 billion in 2018 representing 167% increase; the Integrated Data Sciences Limited (IDSL) recorded N23 billion profit in 2019 compared to N154 million in 2018 representing 14966% increase; the Petroleum Products Marketing Company (PPMC) recorded N14.2 billion profit in 2019 compared to N9.3 billion 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 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.