NNPC cuts 2019 losses by 99.7%

Business a.m. - - FRONT PAGE - Sto­ries by Ben Egu­zozie

STATEOWNED NIGERIAN NA­TIONAL PETROLEUM COR­PO­RA­TION (NNPC) says it has re­duced its huge fi­nan­cial losses by 99.7 per­cent to N1.7 bil­lion in 2019, against the N803 bil­lion it in­curred in 2018. The com­pany gave this in its just re­leased 2019...

Losses: 2019 = N1.7bn; 2018 = N803bn But ad­min­is­tra­tive ex­penses still high at N696bn Re­finer­ies con­tinue with peren­nial losses

STATEOWNED NI GERIAN NA­TION AL PETROLEUM COR­PO­RA­TION (NNPC) says it has re­duced its huge fi­nan­cial losses by 99.7 per­cent to N1.7 bil­lion in 2019, against the N803 bil­lion it in­curred in 2018. The com­pany gave this in its just re­leased 2019 au­dited fi­nan­cial state­ment.

Ac­cord­ing to the cor­po­ra­tion’s spokesman, Ken­nie Obateru, quot­ing the NNPC chief fi­nan­cial of­fi­cer (CFO), Umar Ajiya, the 2019 au­dited fi­nan­cial state­ment was con­cluded five months af­ter the re­lease of the 2018 au­dited ac­count of the com­pany. He said the re­port will be pub­lished on the cor­po­ra­tion’s web­site for all to see 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 the NNPC is a part­ner.

How­ever, while the NNPC’s gen­eral ad­min­is­tra­tive ex­penses in the 2019 au­dited fi­nan­cial state­ment (AFS) dipped by 22 per­cent from 2018 fig­ure of N894 bil­lion, many in­dus­try ex­perts said it is still high at N696 bil­lion in the year un­der re­view.

Ajiya said ma­jor­ity of the NNPC sub­sidiaries posted im­proved per­for­mances, in­clud­ing: Nigerian Petroleum De­vel­op­ment Com­pany Lim­ited (NPDC), which recorded N479 bil­lion profit in 2019 com­pared to N179 bil­lion in 2018, rep­re­sent­ing a 167 per­cent in­crease; In­te­grated Data Sciences Lim­ited (IDSL), which recorded N23 bil­lion profit in 2019 against N154 mil­lion in the pre­vi­ous year, rep­re­sent­ing 14,966 per­cent in­crease; Petroleum Prod­ucts Mar­ket­ing Com­pany (PPMC) posted N14.2 bil­lion profit in the year un­der re­view (2019), against N9.3 bil­lion in the pre­vi­ous year (2018), rep­re­sent­ing 52 per­cent in­crease.

Mean­while, the four re­finer­ies, with name­plate pro­duc­tion ca­pac­ity of 445,000 bar­rels per stream day (bpsd) man­aged by NNPC have con­tin­ued in their peren­nial losses. Each of them main­tained the same level of losses as in 2018.

But Ajiya said the losses “will re­duce sig­nif­i­cantly in 2020, due to cost op­ti­miza­tion drive.”

He ex­plained that NNPC’s im­proved per­for­mance in the 2019 fi­nan­cial year was driven mainly by cost op­ti­miza­tion, con­tracts rene­go­ti­a­tion and op­er­a­tional ef­fi­ciency.

“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,” he said.

Mele Kyari, NNPC’s group manag­ing di­rec­tor, 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.

The NNPC, es­tab­lished in April 1977, is the oil cor­po­ra­tion through which the Nigerian fed­eral gov­ern­ment reg­u­lates and par­tic­i­pates in the coun­try’s petroleum in­dus­try. The NNPC busi­ness op­er­a­tions are man­aged through strate­gic busi­ness and cor­po­rate ser­vices units in di­verse lo­ca­tions across Nige­ria.

L - R: Bola Ade­tayo, di­rec­tor, strat­egy and busi­ness de­vel­op­ment, Green Ea­gles Agribusine­ss So­lu­tions Lim­ited; Taiwo Oluwadahun­sola, chief ex­ec­u­tive of­fi­cer; Em­manuel Ijew­ere, di­rec­tor and board mem­ber; Osiefa Ak­in­bayo of La­gos State Min­istry of Com­merce In­dus­try and Co­op­er­a­tives; and Tasala Osi­nowo, manag­ing di­rec­tor, Green Ea­gles, at the Sym­po­sium or­ga­nized for co­op­er­a­tives in La­gos State re­cently

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