Three subsidiaries of the Nigerian National Petroleum Corporation (NNPC) has made profits worth N516.29 billion in 2019 financial year.
Details of the report showed that majority of the subsidiaries of the Corporation posted improved performance.
The report said that the Nigerian Petroleum Development Company Limited (NPDC) recorded N479 billion profit in 2019 compared to N179 billion in 2018 representing 167 per cent increase while the Integrated Data Sciences Limited (IDSL) recorded ₦23 billion profit in 2019 compared to N154 million in 2018 representing 14966 per cent increase and the Petroleum Products Marketing Company (PPMC) recorded ₦14.2Billion profit in 2019 compared to N9.3 billion in 2018 representing 52 per cent increase.
However, the Refineries maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimization drive.
A statement by the Corporation’s spokesman, Dr. Kennie Obateru, quoted the NNPC Chief Financial Officer (CFO), Mr. Umar Ajiya, as saying that the 2019 Audited Financial Statement, which was concluded five months after the release of the 2018 Audited Financial Statement, 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 it is a partner.
Giving further insight into the 2019 AFS, the CFO disclosed that general administrative expenses also witnessed a 22 per cent dip from N894 billion in 2018 to N696 billion in 2019.
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.”