Amidst the challenging operating environment which has tested the resilience of institutions and businesses globally, the Nigerian National Petroleum Company Ltd has continued to weather the storm by posting its second consecutive year of profit of N674.1billion in the 2021 financial period.
Announcing the result on Tuesday in Abuja, the NNPC Group Chief Executive Officer, Mele Kyari, said, “Today I’m happy to announce that the Board of NNPC has approved 2021 audited financial statements and NNPC has progressed to a new performance level,from N287billion profit in 2020 to N674billion profit after tax in 2021,climbing higher by 134.8% YoY profit growth.”
In spite of a tough and volatile operating environment, the NNPC Group’s investment strategy proved resilient and enabled the National Oil Company to deliver favourable outcomes as shown by the 2021 financial statement.
For instance, the NNPC Group which became a CAMA Company in 2021 following the implementation of the Petroleum Industry Act, grew its profit from N287billion in 2020 to N674billion in 2021.
The NNPC’s Group Account was audited by PriceWaterhouseCoopers, SIAO, and Muntari Dangana Accounting Firms.
The N674billion profit posted by the NNPC Group in the 2021 financial period represents an increase of N387bn or 134.8 per cent when compared to the N287billion recorded in 2020.
The 2021 financial year made it the fourth consecutive years that the NNPC will be making its Audited Financial Statement public. This was one of the innovations made by Kyari when he took over the helms of affairs of the National Oil Company.
In 2018 when the NNPC first made public its Audited Financial Statement, it made a loss of N803.9bn.
Three components were responsible for the poor and worse performance of the Group ever. They were increase in cost of sales, specifically increase in crude cost; increase in the general and admin expense which almost doubled from N474billion to N894billion; and increase in impairment of receivables and other assets in the year by almost 300 per cent.
In 2019 when the NNPC Group Audited Account was released, the loss position had reduced to just N2.3billion.
But with the reforms implemented by the NNPC Boss, the loss position was reversed in the 2020 financial period when the NNPC posted its first profit in 44 years of N287billion.