NNPC posts N3.3trn profit, declares N2.1trn dividend

cover, Financial Markets

The Nigerian National Petroleum Company, NNPC, Limited has released its 2023 Audited Financial Statement, AFS, declaring a net profit of N3.297 trillion for the fiscal year.

This indicates an increase of 28 percent (over N700 billion) compared to the N2.548 trillion recorded in 2022.

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The N3.297 trillion profit declared for 2023 is very symbolic as it is the highest ever to be recorded since the company’s inception, 46 years ago.

In a world press conference at the NNPC Towers in Abuja, the Chief Financial Officer of the Company, Mr. Umar Ajiya said the release of the AFS is a testament to the Company’s commitment to transparency and accountability.

He said: “Our fiscal performance reflects both strategic foresight and operational resilience. Despite the inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company.”

Ajiya said 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.

He explained that NNPC Ltd will announce an Initial Public offer (IPO) once the shareholders and Board make a decision.

Dividends

Also, Ajiya debunked claims on subsidy payment, saying the Company was only taking care of PMS importation shortfall between it and the Federation.

Similarly, the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure said that the excellent performance came as the fruit of the PIA 2021, the commitment of the Board, Management and staff of the company.

Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.

On her part, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd is targeting two million barrels per day crude oil production by the the end of the year.

Commenting on the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Mr. Dapo Segun appealed for understanding from Nigerians, saying that the Company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.

It would be recalled that 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.

2020 records

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, an unprecedented achievement in its financial performance.

In a report obtained from its website, the Company added that “By enhancing our upstream production, expanding our gas processing and transportation services for domestic consumption, and exports.

“We will also revamp and expand our refining assets portfolio through greenfield projects with chemicals production integration and leverage equity partnerships.

“This will ensure we have sufficient capacity to meet local and international demand for premium energy products and services.”