NNPC Releases Audited Financial Statements for 2020 with Recorded Gains

NNPC Releases Audited Financial Statements for 2020 with Recorded Gains

NNPC has consolidated on the remarkable achievement by publishing the Audited Financial Statements (AFS) on its official website, following President Muhammadu Buhari's recent announcement that the Nigerian National Petroleum Corporation (NNPC) will declare a profit after tax (PAT) of 287 billion Naira (N287bn) in 2020

President Muhammadu Buhari, who is also the Minister of Petroleum Resources, announced the remarkable achievement a little over a couple of weeks ago, saying: "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."

The NNPC has met this critical statutory duty by publishing its Audited Financial Statements in September 2021, in accordance with the President's direction.

The Corporation's group profit, which increased from a loss of N1.7 billion in 2019 to a profit of N287 billion in 2020 for the first time in 44 years, is one of the highlights of the 2020 AFS.

Since the President's announcement of profit, the NNPC's Group Managing Director, Mal. Mele Kyari, has ascribed the turnaround to aggressive cost-cutting, system automation, and contract renegotiation downwards by around 30%, among other severe measures.

The AFS also indicated that, while the Corporation's total current assets climbed by 18.7% in 2019 compared to the previous year, total current liabilities increased by 11.4 percent.

The group's working capital remained below the line in 2020, at N4.56 trillion, compared to N4.44 trillion in 2019, according to the AFS.

Similarly, the Corporation's group income for the 2020 financial year was N3.718 trillion, down from N4.634 trillion in 2019, owing to a drop in crude oil production and pricing as a result of the global impact of the Covid-19 epidemic.

The NNPC has published its Audited Financial Statements for the third year in a row, after doing so in 2018 and 2019.

The NNPC 2020 AFS is available in its entirety on the Corporation's website.