The Nigerian National Petroleum Corporation (NNPC) on Thursday, declared a loss of N1.7 billion following the release of its 2019 Audited Financial Statement.
According to the NNPC, the N1.7 billion loss represents a 99.7 per cent decline from a loss of N803 billion recorded in 2018.
The NNPC, in a statement in Abuja, further stated that general administrative expenses also reduced by 22 per cent from N894 billion in 2018 to N696 billion in 2019.
Presenting the report, Chief Financial Officer, CFO, of the NNPC, Mr. Umar Ajiya, said that the impressive performance of the firm in the 2019 financial year was enhanced by cost optimization, contracts renegotiation and operational efficiency.
“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 per cent increase; the Integrated Data Sciences Limited, IDSL, recorded about N230 billion profit in 2019 compared to N154 million in 2018 representing 14,966 per cent increase.
“The Petroleum Products Marketing Company, PPMC, recorded N14.2 billion profit in 2019 compared to N9.3 billion in 2018, representing 52 per cent 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.”
Concerning 2020, Ajiya assured that the outlook looked promising in view of the NNPC management’s strong drive to prune down running cost and grow revenues.
He explained that the 2019 audited financial statement goes further to demonstrate the NNPC’s unwavering commitment to the principle of Transparency, Accountability and Performance Excellence, TAPE.
The 2019 Audited Financial Statement, which was concluded five months after the release of the 2018 Audited Financial Statement, would be published on the NNPC’s website for all to see in keeping with the 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, Mr Ajiya noted.
The NNPC said the release of the result was in line with the promise of its Group Managing Director, Mallam Mele Kyari, 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.