NNPC Cuts Loss by 99.7 Percent to N803 Billion, Down from N1.7 Billion in 2018

The Nigerian National Petroleum Corporation (NNPC) has said it reduced loss profile by 99.7 percent from N1.7 billion in 2018 to N803 billion in 2019.

The corporation disclosed this in its 2019 Audited Financial Statement (AFS) released on Thursday in Abuja by Dr Kennie Obateru, the spokesman, NNPC.

Further analysis of the report revealed that administrative expenses also reduced by 22 percent from N894 billion posted in the corresponding year to N696 billion in 2019.

According to the report, most of the corporation subsidiaries posted positive results during the period under review.

For instance, the Nigerian Petroleum Development Company Limited (NPDC) posted a 167 percent increase in profit from N179 billion in 2018 to N479 billion in 2019.

“The Integrated Data Sciences Limited (IDSL) recorded ₦23billion profit in 2019 compared with ₦154million in 2018, representing 14966 per cent increase and the Petroleum Products Marketing Company (PPMC) recorded ₦14.2billion profit in 2019 compared with the ₦9.3billion recorded in 2018, representing 52 per cent increase.

“Also, the refineries maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimisation drive,” the CFO said.

The report added that the positive performance was as a result of the effective cost optimisation, contracts renegotiation and operational efficiency strategies enforced in 2019.

“The 2019 AFS goes further to demonstrate our unwavering commitment to the principle of Transparency, Accountability, and Performance Excellence while the outlook for 2020 looks promising in view of the management’s strong drive to prune down running cost and grow revenues,” it stated.