NNPC Releases 2020 Audited Financial Statements, posts profit growth in 2020 despite 20% decline in topline

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The Nigerian National Petroleum Corporation (NNPC) has published its Audited Financial Statements (AFS) for the year 2020.

In a statement by the Group General Manager, Public Affairs Division, Garba Deen Muhammad, the Corporation’s group revenue for 2020 was N3.718 trillion, down from N4.634 trillion in 2019.

He attributed the decrease to decline in production and fall in the price of crude oil due to the global impact of COVID-19.

Further highlights of the AFS revealed that while the corporation’s group financial position increased in total current assets by 18.7% compared to that of 2019, its total current liabilities increased by 11.4% within the same period.

The NNPC was able to post positive bottom line despite the decline in revenue due to the significant increase recorded in other income for the period compared to the previous year. Notably, Other income at N675.66 billion rose by 154% in the review period from N266.1 billion in 2019.

A cursory look at the breakdown of the other income earned by the petroleum group showed that it received a sum of N20.79 billion in management fees, which represents 2% charges in respect of capital expenditure budget of NAPIMS.

Also, a significant increase in sundry income drove the bottom line up. A total of N157.1 billion was recovered from the Federation relating to strategic alliance balances compared to N76.3 billion recorded in the previous year.

Other items on the list, which contributed to the profit growth include, refunds from the federation (N110.63 billion), variation in crude stock (N250.17 billion), demurrage (N14.24 billion), Freight income (N44.32 billion), amongst others.

It is worth noting that refund from federation relates to the amount received from the federation for expenses incurred on their behalf which had been previously written off.

Meanwhile, recall that the Group Managing Director of NNPC, Mele Kyari revealed that it will be issuing an IPO by 2024. The recent profit declaration is a step in the right direction as this will help boost investors confidence in the firm.




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