Analysts, including accountants, auditors and other financial experts who have held reservations over the historical N278 billion 2020 profit after tax announced by state-owned oil giant, Nigerian National Petroleum Corporation (NNPC) have now been given an opportunity to take a closer look at the numbers with the publication of the audited financial statement for the year under review.
Not a few of them across different platforms on social media had marvelled at the substantial figure released as after tax profit for the year and expressed a desire for clarification or for the statement to be made available for their own examination.
Now, following up on President Muhammadu Buhari’s recent announcement of the declaration of N278 billion as its first profit after tax (PAT) in 44 years, the Nigerian National Petroleum Corporation (NNPC), has consolidated on the achievement, by publishing its audited financial statements (AFS) on its official website.
The AFS further gives the national oil company out as one of the NOCs poised for operation as a going company.
Many oil industry watchers have welcomed the Nigerian NOC’s decided self probity, especially as Mele Kyari, the CEO, has announced the NOC’s decision to embark on an initial public offering (IPO) by 2024.
While announcing the feat a little over a fortnight ago, President Muhammadu Buhari, who is also the minister of petroleum resources, said he had further directed the NNPC to timely publish its audited financial statements in line with the requirements of the law; and as a follow up to his commitment to ensuring transparency and accountability by public institutions.
In compliance with the President’s directive, the national oil company has fulfilled the statutory requirement by publishing its AFS for the 2020 financial year.
Among the highlights of the 2020 AFS is the corporation’s group profit which rose from a loss position of N1.7 billion in 2019 to a profit of N287bn in 2020, for the first time in 44 years.
The group managing director of NNPC Kyari, had at various times since the President’s declaration of profit, attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.
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 group’s working capital remained below the line at N4.56 trillion in 2020 as against N4.44 trillion in 2019, the AFS further revealed.
Similarly, the national oil company’s group revenue for the 2020 financial year stood at N3.718 trillion as against N4.634 trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the Covid-19 pandemic.
This is the third consecutive year that the NNPC is publishing its AFS, having done so for 2018 and 2019.