Nigerian National Petroleum Company Limited (NNPC Ltd) announced Monday it recorded a net profit of N3.297 trillion at the close of the financial year ending December 2023. It said the profit is the highest-ever by the firm.
“The NNPC Limited has released its 2023 Audited Financial Statement (AFS), declaring a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, an increase of over N700 billion (28 per cent) when compared to the 2022 profit of N2.548 trillion,” the statement said.
According to the statement, the Chief Financial Officer of the Company, Umar Ajiya, said the release of the audited financial statement is a testament to the company’s commitment to transparency and accountability.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Mr Ajiya said.
Mr Ajiya explained that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the company’s shareholders.
Explaining that the NNPC Ltd will announce Initial Public offer (IPO) once the shareholders and Board make a decision, Mr Ajiya also claimed that the corporation was not paying subsidy on petrol, saying the company was only taking care of petrol importation shortfall between it and the federation.
Speaking earlier at a press conference, according to the statement, the Chairman of the NNPC Ltd Board, Pius Akinyelure, said that the increased profit came as the fruit of the PIA 2021, the commitment of the board, management and staff of the company.
Mr Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1 trillion in line with PIA 2021 provisions.
In her remarks, the Executive Vice President, Upstream, Oritsemeyiwa Eyesan said with improvements witnessed as a result of the renewed vigor in the war against crude oil theft and pipeline vandalism, NNPC Ltd is targeting 2 million barrels per day crude oil production by the end of the year.
On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Dapo Segun, appealed for understanding from Nigerians, saying that the company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.
NNPC Ltd issued its first audited accounts for the first time in 43 years in 2020 and transitioned into a limited liability company two years later as part of efforts to free the monolithic enterprise from government control.
In 2021, NNPC declared profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.
“However, in 2020, it posted its ‘first-ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548 trillion, an unprecedented achievement in its financial performance.
“The N3.297 trillion profit declared for 2023 is the highest since the company’s inception, 46 years ago,” the statement said.
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