By Oludare Mayowa
The Nigerian National Petroleum Corporation (NNPC) on Thursday said it has narrowed its loss by 99.7 percent at the end of 2019 to N1.7 billion from N803 billion in the previous financial year.
The state-run oil firm said in a statement that the improved performance in the 2019 financial year “was driven mainly by cost optimization, contracts renegotiation and operational efficiency.”
Quoting the corporartion’s Chief Financial Officer (CFO), Umar Ajiya, the statement said; “the 2019 AFS goes further to demonstrate our unwavering commitment to the principle of Transparency, Accountability and Performance Excellence while the outlook for 2020 looks promising in view of Management’s strong drive to prune down running cost and grow revenues.”
The CFO also disclosed that general administrative expenses also witnessed a 22 percent dip to N696bn in 2019 from N894 billion in 2018.
Ajiya said the majority of the subsidiaries posted improved performance namely, the Nigerian Petroleum Development Company Limited (NPDC) posted N479 Billion profit in 2019 compared to N179 Billion posted in 2018, indicating 167 percent increase.
The Integrated Data Sciences Limited (IDSL), the statement said also posted improved performance with a total of N23 billion profit in 2019 against the N154 million in the previous year, while the Petroleum Products Marketing Company (PPMC) recorded N14.2 billion at the end of last financial year compared N9.3 billion posted in the previous year, indicating a 52 percent increase.
However, the corporate said all the four refineries continue to make losses as it was in the previous year.
“The Refineries have maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimization drive,” the NNPC statement said.