Home Companies&Markets NNPC reports a N1.7 billion loss in 2019 but subsidiaries post improved...

NNPC reports a N1.7 billion loss in 2019 but subsidiaries post improved performances

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NNPC

By Audrey Lotechukwu

THUR, OCT 15 2020-theG&BJournal-The Nigerian National Petroleum Corporation (NNPC) has released its 2019 audited financial statement reflecting a loss of N1.7 billion in 2019, 99.7% in the red when compared to N803 billion reported in 2018.

The 2019 audited financial statement comes barely five months after publishing its 2018 audited financial statement.

The Corporation’s Chief Financial Officer (CFO) Umar Ajiya revealed that majority of the subsidiaries however posted improved performance including Nigerian Petroleum Development Company Limited (NPDC) which reported 167% increase in profit to N479 billion in 2019 compared to N179 billion in 2018, the Integrated Data Sciences Limited 9IDSL) recorded N23 billion profit in 2019 compared to N154 million in 2018. The Petroleum Products Marketing Company (PPMC) also recorded a 52% increase in profit in 2019, from N9.3 billion in 2018 to N14.2 billion in 2019.

Ajiya said the improved performance in 2019 financial year was driven mainly by cost optimization and operational efficiency.

He disclosed in a statement released by NNPC’s spokesman Dr Kennie Obateru today, that the general administrative expenses of the Corporation also witnessed a 22% dip from N894 billion in 2018 to N696 billion in 2019.

According to Ajiya, the refineries have maintained the same level of losses as in 2018 but expect that to significantly reduce in 2020 due to cost optimization drive.

The CFO said the 2019 audited financial statement goes further to demonstrate the NNPC’s unwavering commitment to the principle of transparency, accountability and performance excellence.

‘’The outlook for 2020 looks promising in view of management’s strong drive to prune down running cost and grow revenues,’’ he said.

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