Major subsidiaries of the Nigerian National Petroleum Corporation (NNPC) have recorded over 50 percent increase in the 2019 Audited Financial Statement.
The NNPC Chief Financial Officer (CFO), Umar Ajiya, identified the subsidiaries as Nigerian Petroleum Development Company Limited (NPDC), Integrated Data Sciences Limited (IDSL), and Petroleum Products Marketing Company (PPMC).
The NPDC recorded ₦479 billion profit in 2019 compared to the ₦179 billion in 2018, representing 167 per cent increase.
Ajiya noted that the profit of IDSL grew from N154 million in 2018 to N23 billion in 2019, while the PPMC’s profit grew by 52 percent from ₦9.3 billion in 2018 to ₦14.2 billion in 2019.
On the nation’s refineries, the CFO said they maintained the same level of losses in 2018 and 2019 but expressed optimism that it will reduce significantly in 2020 due to cost optimization drive.
“The national oil company achieved a 99.7 per cent reduction in its loss profile from ₦803 billion in 2018 to ₦1.7bn in 2019, adding that general administrative expenses also witnessed a 22 per cent dip from ₦894bn in 2018 to ₦696bn in 2019,” the NNPC officer said.
He explained that the improved performance in the 2019 financial year was driven mainly by cost optimisation, contracts renegotiation and operational efficiency.
“The 2019 Audited Financial Statement 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,” he said.
InsideBusiness.ng recalls that the Group Managing Director of NNPC, 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.
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