Nigerian National Petroleum Corporation NNPC has disclosed that its general administrative expenses witnessed a 22 per cent dip from ₦894bn in 2018 to ₦696bn in 2019.
The Corporation’s spokesman Dr. Kennie Obateru who made this known in a statement yesterday in Abuja explained that it was part of Audited Financial Statement report for 2019.
Obateru also quoted the NNPC Chief Financial Officer CFO, Mr. Umar Ajiya, as saying that the 2019 Audited Financial Statement, which was concluded five months after the release of the 2018 Audited Financial Statement, will be published on the Corporation’s website for all to see in keeping with Management’s commitment to transparency and accountability and in consonance with the principles of the Extractive Industries Transparency Initiative EITI of which it is a partner.
According to Ajiya, majority of the subsidiaries posted improved performance namely, the Nigerian Petroleum Development Company Limited NPDC which recorded ₦479 billion profit in 2019 compared to ₦179 billion in 2018 representing 167 per cent increase; the Integrated Data Sciences Limited IDSL recorded ₦23 billion profit in 2019 compared to ₦154 million in 2018 representing 14966 per cent increase; the Petroleum Products Marketing Company PPMC recorded ₦14.2 billion profit in 2019 compared to ₦9.3 billion in 2018 representing 52 per cent increase; while 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 CFO explained that the improved performance in the 2019 financial year was driven mainly by cost optimization, contracts renegotiation and operational efficiency.
The report also revealed that the 2019 Audited Financial Statement with a 99.7 per cent reduction in its loss profile from ₦803billion in 2018 to ₦1.7billion in 2019.
He said “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.”