NNPC Declares Massive Profit of over N3trn, Highest in 46 Years, Gives Breakdown

• The Nigerian National Petroleum Company has declared a profit of over N3 trillion, the highest ever in 2023
• The oil company also said that its revenue for 2023 is impressive, as it hits over N24 trillion from oil sales, others
• NNPCL said the results are a reflection of the commitment and hard work of the management and staff of the company

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPCL) has announced a net profit of N3.29 trillion for 2023.

The new figure is the highest ever since 1977 and a 28% or N700 billion increase from the N2.54 trillion profit declared for 2022.

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Umar Ajiya, the chief financial officer (CFO) of NNPCL, disclosed the figures at a press conference in Abuja.

Providing a breakdown, Ajiya said that the profit reflects the commitment and hard work of the NNPCL staff.

His words:

"“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company"

Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021 and, by extension, as expected by the company’s shareholders.

Breakdown of NNPCL profits over the years

• 2023: N3.297 trillion
• 2022: N2.54 trillion
• 2021: N674.1 billion
• 2020: N287.0 billion
• 2019: Loss of N1.7 billion

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Furthermore, Ajiya said that NNPCL will announce its Initial Public offer (IPO) once the shareholders and Board make a decision.

He also debunked claims on subsidy payment, saying the company was only taking care of the shortfall in the importation of petrol between it and the Federation.

Here is a breakdown of NNPC financial earnings 2023

• Revenue - N23.9 trillion
• Gross profit - N7 trillion
• Operating profit - N4.3 trillion
• Profit before tax - N5.9 trillion
• Net profit - N3.2 trillion
• Cash & equivalents - N7.7 trillion
• Final dividend - N2.1 trillion

Oil production to increase

In her remarks at the briefing, Oritsemeyiwa Eyesan, the executive vice president of Upstream, said that the improvements witnessed were a result of the renewed vigour in the fight against crude oil theft and pipeline vandalism.

She noted that NNPC Ltd. was targeting 2 million barrels per day of crude oil production by the end of the year.

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NNPC transition into a new company

Legit.ng previously reported that NNPCL changed its operations and became a different company starting Friday, July 1, 2022.

The state-owned corporation's name was changed to the Nigerian National Petroleum Company Limited (NNPC Ltd.).

This development was in line with the Petroleum Industry Act (PIA) provisions, signed by former President Muhammadu Buhari.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng