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Business News of Friday, 16 October 2020

Source: The Nation

NNPC cuts loss to N1.7b

The Nigerian National Petroleum Corporation (NNPC) has recorded a 99.7 per cent reduction in its loss profile from N803billion in 2018 to N1.7billion in 2019, according to its 2019 Audited Financial Statement (AFS), released on Thursday.

The report is due to be published on the Corporation’s website in line with the transparency and accountability in its operation promised by Group Managing Director Mele Kyari, according to its spokesman Dr Kennie Obateru.

The 2019 Report came five months after the 2018 AFS report was published.

Kyari added that running a transparent NNPC is in consonance with the principles of the Extractive Industries Transparency Initiative (EITI) of which it was a partner.

A breakdown of the report shows that general administrative expenses witnessed a 22 per cent dip from N894 billion in 2018 to N696 billion in 2019.

The Corporation said majority of the subsidiaries posted improved performance.

The subsidiaries are the Nigerian Petroleum Development Company Limited (NPDC) which recorded N479 billion profit in 2019 compared with N179billion in 2018, representing 167 per cent increase.

The Corporation’s Chief Financial Officer (CFO), Mr Umar Ajiya said: “The Integrated Data Sciences Limited (IDSL) recorded N23billion profit in 2019 compared with N154million in 2018, representing 14966 per cent increase and the Petroleum Products Marketing Company (PPMC) recorded N14.2billion profit in 2019 compared with the N9.3billion 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.”

He added that the improved performance in the 2019 financial year was driven mainly by cost optimisation, contracts renegotiation and operational efficiency.

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

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