The Nigerian National Petroleum Corporation (NNPC) has published its audited financial statements which showed that the group’s assets’ value rose by 18.7percent amid devastating impacts of the COVID-19 pandemic on broad sectors of Nigeria’s economy.
The publication of the corporation’s financial statement for the 2020 year on its website was in compliance with Federal Government’s statutory requirement for all government-owned entities.
One of the key highlights of the state-owned oil entity’s 2020 financial statements is the surge in the Group’s profit to N287 billion from a loss position of N1.7 billion in 2019, a feat achieved for the first time in 44 years.
Other highlights of the financial statements showed that while the corporation’s group financial position grew in total current assets by 18.7% compared to the value recorded in the preceding year, its total current liabilities, however, increased by 11.4% within the same period.
Also, the Group’s working capital marginally increased to N4.56 trillion in 2020 as against N4.44trillion in 2019. Similarly, the NNPC Group’s revenue for the financial year under review stood at N3.718 trillion as against N4.634 trillion raked in the preceding year 2019.
Industry analysts believe that the slump in revenue accruals during the 2020 financial year is partly attributable to the drop in the crude oil production and price due to the global impact of the COVID-19 pandemic on the international oil market supply and demand.
It would be recalled that President Muhammadu Buhari, who also oversees the operations of the Petroleum Resources Ministry had, about two weeks ago, announced the N287 billion Profit-After-Tax (PAT) posted by the corporation in the 2020 financial year.
The president said: “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.”
Reflecting on the state-owned oil company’s performance in the 2020 financial year, its Group Managing Director, Mallam Mele Kyari, attributed the corporation’s improved performance to cost reduction, automation of the system and downwards review of contracts by about 30 per cent, among other prudential measures.
