Daily Trust

NNPC cuts losses by N801.3bn in 2019

- By Zakariyya Adaramola Business · Nigeria News · Petroleum · Fuel · Industries · Nigerian National Petroleum Corporation · Nigerian National Petroleum Corporation (NNPC)

The Nige­rian Na­tional Pe­tro­leum Cor­po­ra­tion (NNPC) has re­leased its 2019 Au­dited Fi­nan­cial State­ment (AFS) with 99.7% re­duc­tion in its loss pro­file from 803 bil­lion in 2018 to 1.7bn in 2019.

This is com­ing barely five months af­ter pub­lish­ing its 2018 AFS, a state­ment by the cor­po­ra­tion’s spokesman, Dr. Ken­nie Obateru, said.

NNPC Chief Fi­nan­cial Of­fi­cer (CFO) Mr. Umar Ajiya said the lat­est re­port 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) to which it is a part­ner.

Giv­ing fur­ther in­sight into the 2019 AFS, the CFO dis­closed that gen­eral ad­min­is­tra­tive ex­penses also wit­nessed a 22% dip from 894bn in 2018 to 696bn in 2019.

Ac­cord­ing to Ajiya, ma­jor­ity of the sub­sidiaries posted im­proved per­for­mance; namely, the Nige­rian Pe­tro­leum De­vel­op­ment Com­pany Lim­ited (NPDC) which recorded 479bn profit in 2019 com­pared to 179bn in 2018 rep­re­sent­ing 167% in­crease; the In­te­grated Data Sciences Lim­ited (IDSL) that recorded 23bn profit in 2019 com­pared to 154 mil­lion in 2018 rep­re­sent­ing 14,966% in­crease; and the Pe­tro­leum Prod­ucts Mar­ket­ing Com­pany (PPMC) which recorded 14.2bn profit in 2019 from 9.3bn in 2018 rep­re­sent­ing 52% in­crease.

How­ever, the re­finer­ies main­tained the same loss level as in 2018 but that is ex­pected to re­duce sig­nif­i­cantly in 2020 due to cost op­ti­miza­tion drive, he said.

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