The Nigerian National Petroleum Corporation has reported a 99.7 per cent reduction in its loss profile from ₦803bn in 2018 to ₦1.7bn in 2019, the company’s 2019 audited financial statement stated.
A statement by NNPC’s spokesman, Dr. Kennie Obateru, quoted the corporation’s Chief Financial Officer, Umar Ajiya, as saying that the 2019 report will be published on its website.
According to the CFO, further insight into the report indicated that general administrative expenses witnessed 22 per cent reduction from ₦894bn in 2018 to ₦696bn in 2019, even as the majority of the subsidiaries posted improved performance.
The Nigerian Petroleum Development Company Limited recorded an increase of 167 per cent profit or ₦479bn in 2019 compared to ₦179bn in 2018, while the Integrated Data Sciences Limited recorded ₦23bn profit in 2019 compared to ₦154bn in 2018.
Also, while the Petroleum Products Marketing Company recorded an increase of 52 per cent or ₦14.2bn profit compared to ₦9.3bn in 2018, the refineries have maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimization drive, according to Ajiya.
He attributed the improved performance in the 2019 financial year to have been driven mainly by cost optimisation, contracts renegotiation, and operational efficiency.
Ajiya stated, “The 2019 AFS goes further to demonstrate our unwavering commitment to the principle of ‘Transparency, Accountability and Performance Excellence’ while the outlook for 2020 looks promising in view of NNPC management’s strong drive to prune down running cost and grow revenues.”
The Group Managing Director of NNPC, Mallam Mele Kyari, had promised to sustain the publication of the corporation’s financial statement as part of efforts to deepen transparency and accountability and keep stakeholders abreast of NNPC’s operations.