The NNPC Limited, a dynamic global energy company with businesses and operations across the entire energy value chain, released its 2023 Audited Financial Statement (AFS) on Monday, declaring a net profit of N3.297 trillion at the end of the fiscal year that ended in December 2023, a 28% increase (more than N700 billion) from the N2.548 trillion recorded in 2022.
The N3.297 trillion profit stated for 2023 is highly symbolic because it is the largest ever recorded since the company’s beginning 46 years ago. However, in a world press conference held at the NNPC Towers in Abuja, the Company’s Chief Financial Officer, Mr. Umar Ajiya, stated that the release of the AFS demonstrates the company’s commitment to transparency and accountability.
He stated, “Our fiscal performance demonstrates both strategic forethought and operational resiliency. Despite the inherent limitations of our operational and economic climate, we have increased the productivity and financial performance of this outstanding organisation.
Ajiya stated that such strong results indicate NNPC Ltd’s commitment to maintaining profitability and promoting national energy security, as mandated by the Petroleum Industry Act (PIA) 2021 and, by extension, as expected by the Company’s shareholders.
Ajiya explained that the NNPC Ltd will announce an Initial Public Offering (IPO) after the shareholders and Board make a decision. He also denied charges of subsidy payment, stating that the Company was merely addressing the PMS importation shortfall between it and the Federation.
Similarly, Chief Pius Akinyelure, Chairman of the NNPC Ltd Board, stated that the great performance was the result of the PIA 2021 and the dedication of the company’s Board, Management, and Staff. Akinyelure noted that the company’s shareholders had since authorised a final dividend of N2.1trn in accordance with PIA 2021 rules.
Mrs. Oritsemeyiwa Eyesan, Executive Vice President, Upstream, stated that with improvements seen as a result of renewed zeal in the campaign against crude oil theft and pipeline vandalism, NNPC Ltd aims to produce 2 million barrels per day of crude oil by the end of the year.
Commenting on the current fuel queues in parts of Lagos and the FCT, Executive Vice President, Downstream, Mr. Dapo Segun, urged Nigerians to be patient, stating that the Company is working with relevant stakeholders to address distribution, evacuation, and logistics challenges. It should be noted that in 2021, NNPC reported a profit for the first time.
From a loss of N803 billion in 2018, it decreased the loss to N1.7 billion by 2019. However, in 2020, it earned its ‘first ever’ profit of N287 billion, followed by a profit of N674.1 billion in 2021 and N2.548 billion in 2022, an unprecedented feat in its financial performance.
In a report obtained from its website, the Company added that “By enhancing our upstream production, expanding our gas processing and transportation services for domestic consumption and exports, and revamping and expanding our refining assets portfolio through greenfield projects with chemicals production integration and leverage equity partnerships, we will ensure sufficient capacity to meet local and international demand for premium energy products and services.
