The Nigerian National Petroleum Corporation (NNPC) has posted a N287 billion profit after tax for 2020, shattering its business performance record in the past 44 year.
The figure is contained in the corporation’s Audited Financial Statements (AFS) published on its official website.
New spokesman, Mr Garba Deen Mohammed stated that the publication of the corporation’s financial results follows President Muhammadu Buhari’s recent announcement of the results and directed the NNPC to publish the results timely.
President Muhammadu Buhari is also the Minister of Petroleum Resources.
“I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial Statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions,” he stated while announcing the corporation’s financial performance for 2020.
Mr Garba Deen Mohammed said NNPC has fulfilled the very important statutory requirement by publishing its Audited Financial Statements in compliance with the President’s directive.
Among the highlights of the 2020 AFS, he said, is the corporation’s group profit which rose from a loss position of N1.7 billion in 2019 to a profit of N287 billion in 2020, for the first time in 44 years.
The Group Managing Director of the NNPC Mal. Mele Kyari, had at various times since the President’s declaration of profit, attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.
Further highlights of the AFS revealed that while the Corporation’s group financial position increased in total current assets by 18.7% compared to that of 2019, its total current liabilities increased by 11.4% within the same period.
The group’s working capital remained below the line at N4.56trillion in 2020 as against N4.44trillion in 2019, the AFS further revealed.
Similarly, the Corporation’s group revenue for the 2020 financial year stood at N3.718trillion as against N4.634trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the Covid-19 pandemic.
This is the third consecutive year that the NNPC is publishing its AFS, having done so for 2018 and 2019.