NNPC Ltd posts highest profit in 46 years
…Declares N2.1trn dividend
…Targets 2mbpd Crude Oil Production by Dec 2024
…Appeals for calm amid fuel scarcity
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has declared a net profit of N3.3 trillion at the close of the financial year which ended in December 2023.
This represents an increase of over N700 billion (28 percent) when compared to the 2022 profit of N2.548 trillion.
Chief Financial Officer of NNPC Ltd., Alhaji Umar Ajiya who addressed journalists on Monday in Abuja on the development, said that this was the highest profit declared by the company since inception, 46 years ago.
Ajiya said the release of the NNPC Ltd. 2023 Audited Financial Statement (AFS) was a testament to the company’s commitment to ensure transparency and accountability.
He said the company enrolled itself into the Nigeria Extractive Industries Transparency Initiative (NEITI) and global Extractive Industries Transparency Initiative (EITI) to ensure transparency.
He said that NNPC Ltd. produced its first profit of N287 billion in 2020, just one year after the taking over a new management in 2019.
“In 2021, NNPC Ltd. recorded N674.1 billion profit.
“In 2022, the profit jumped to N2.548 trillion, the same year we had the Joint Venture (JV) assets transferred to the company,” Ajiya said.
The CFO of NNPC Ltd. disclosed that the 141 percent increase in non-current assets in 2022 was as a result of the transfer of JV assets to the NNPC Ltd. in line with the Petroleum Industry Act (PIA).
He said that the company was literally holding an asset base of N8 trillion in 2019 which slightly moved to N9 trillion in 2020 but by 2021 following the movement of JV assets to the company the non-current assets grew to N15.3 trillion.
By 2022 resulting from the investment, the assets grew from N15.3 trillion to N37 trillion and now N74 trillion in 2023.
According to him, the 100 per cent increase from 2022 to 2023 is mainly due to translation differences and additional investment.
He further said that the total assets position stood at N246 trillion, as the interim dividend paid within the year amounted to N536.6 billion, while the final dividend amounted to N2.1 trillion.
He revealed that the government’s take in the form of taxes, levies and statutory deductions from the company stood at N8.6 trillion.
Ajiya said that the N8.6 trillion comprised of N537 billion which was paid as interim dividend, while N2.1 trillion stood for final dividend declared.
“Our fiscal performance reflects both strategic foresight and operational resilience.
“In spite of the inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company.
“Posting such impressive returns demonstrates NNPC Ltd.’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the PIA and by extension, as expected by the Company’s shareholders,” Ajiya said.
He said that the NNPC Ltd. would announce its Initial Public Offer (IPO) once the shareholders and NNPC Ltd. Board finalise on when shares would be sold.
Ajiya also refuted claims on subsidy payment, adding that the NNPC Ltd. was only taking care of Premium Motor Spirit (PMS) importation shortfall between it and the Federation.
Earlier, the Chairman of the NNPC Ltd. Board, Chief Pius Akinyelure, said that the said the excellent performance was as a result of the sheer hard-work and commitment of the Board, management and staff of the company.
Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.
The Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan, said the NNPC Ltd. was targeting two million barrels per day crude oil production by the end of 2024.
She said the improvements being witnessed was as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism.
On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Mr Dapo Segun, appealed for understanding from Nigerians, adding that supply challenges were being addressed.
It would be recalled that in 2021, NNPC Ltd. declared profit in its operations for the first time.
From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.
