The Nigerian National Petroleum Corporation (NNPC) has, barely five months after publishing its 2018 Audited Financial Statement (AFS), released its 2019 Audited Financial Statement in which losses were reduced from the ₦803 billion recorded in 2018 to ₦1.7 billion in 2019.
According to the Corporation, this translates to a 99.7percent reduction in its 2019 loss profile compared with 2018 figures.
Giving insight into the 2019 AFS, the NNPC’s Chief Financial Officer (CFO), Mr. Umar Ajiya, disclosed that general administrative expenses also witnessed a 22percent dip from ₦894 billion in 2018 to ₦696 billion in 2019.
According to Ajiya, majority of the subsidiaries posted improved performance in 2019 compared with 2018 performance, such as the Nigerian Petroleum Development Company Limited (NPDC) which recorded ₦479 billion profit in 2019 compared to ₦179billion in 2018 representing 167percent increase.
Others are the Integrated Data Sciences Limited (IDSL) which recorded ₦23 billion profit in 2019 compared to ₦154 million in 2018 representing 14966percent increase and the Petroleum Products Marketing Company (PPMC) which recorded ₦14.2 billion profit in 2019 compared to ₦9.3 billion in 2018 representing 52percent increase.
However, the Refineries which recorded a combined loss of N154 billion in 2018, have maintained the same level of losses, the Corporation stated, however, expressing the hope that the losses 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.”
In a statement, Mr. Ajiya, said the 2019 Audited Financial Statement will be published on the Corporation’s website 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.
It would be recalled that the Group Managing Director of NNPC, Mr. 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.