Oil giant declares N3.3tr profit
The Nigerian National Petroleum Company Limited (NNPCL) posted a net profit of N3.297 trillion for 2023.
It announced that its shareholders will be given N2.1trillion as dividends.
The figure, it said, represented an increase of over N700 billion or 28 per cent when compared to the 2022 profit of N2.548 trillion. The firm also released its 2023 Audited Financial Statement (AFS).
In a statement Chief Corporate Communications Officer, Olufemi Soneye, quoted the Chief Financial Officer of the company, Umar Ajiya, as saying that the release of the AFS is a testament to the company’s commitment to transparency and accountability.
“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 stated.
He added that posting such impressive returns demonstrates NNPCL’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.
Explaining that the NNPCL will announce Initial Public offer (IPO) once the shareholders and Board make a decision, Ajiya also debunked claims on subsidy payment, saying the company was only taking care of premium motor spirit (PMS) or petrol importation shortfall between it and the Federation.
Executive Vice President, Mr. Dapo Segun made this known at the 2023 Audited Financial Statement presentation in Abuja.
He recalled that NNPCL did the mechanical completion of the refinery last year, urging Nigerians to be patient.
He explained that currently, the Crude Distillation Unit (CDU) that is the primary producing unit is now working.
According to him, the CDU, which is a kettle, was fired up early this month.
He explained: “The CDU of the Port Harcourt Refinery is working as we speak.”
When will we get the product out? He said: “That is the combination of the process of testing. We will test. You don’t get perfect production immediately when you start your refinery. You are going to get off-spec production.
“We should be getting some off-spec production coming into town in the next few days. But we will not be able to get that to the public until we get off-spec production, which has been certified by NMDPRA.
Daily crude production rises by 80,000 barrels on improved security, says NNPCL
“The process of getting that to the public and getting it certified by NMDPRA, if I don’t make a mistake we should reach that point of getting it certified and getting our approval for Port Harcourt Refinery as fit for distribution by NMDPRA by some times in September.
“But as it is now the unit is working. We are getting products. It is not an authorized spec yet.”
On scarcity of petrol, Segun attributed it to a distribution challenge occasioned by rains and thunderstorms that have endangered the loading of the product.
He also said the roads are part of the distribution challenges hindering the product supply.
He said: “A number of the causes are outside our control but we do our best to manage. We do not like to make excuses but you will imagine, for example, since the rains began some channels have been difficult to navigate through.
“We have vessel to vessel going out there because of the situation and that has really hindered our ability to bring in petrol products particularly PMS of the country.
“You also understand that the rain also brings a situation where our ability to discharge petroleum products is challenged.
“When you have lightning and thunderstorms, you have to suspend not just the discharge of petroleum products offshore but also the evacuation from the tank farms. Such has been the situation.
“We have also had issues with the road network and that also gives challenges in bringing the product to the country. The terminal in Lagos was built to address a very short supply gap. Vessels are in Lagos now discharging as I speak. A number of these combined to create a nightmare situation for us but I can assure you we are doing everything in making sure we get petroleum products to the nooks and crannies of the country.”
Speaking earlier at the press conference where the announcement was made, the Chairman of the NNPCL Board, Chief Pius Akinyelure, said the excellent performance came as the fruit of the PIA 2021, the commitment of the board, management and staff of the company. Akinyelure added that the company’s shareholders have since approved a final dividend of N2.1trillion in line with PIA 2021 provisions.
In her remarks, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPCL is targeting two million barrels per day (mbpd) crude oil production by the end of the year.
On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Dapo Segun, appealed for understanding from Nigerians, saying the company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.
It would be recalled from a loss position of N803 billion in 2018, the NNPCL reduced the loss further down to N1.7 billion in 2019. However, in 2020, it posted its ‘first ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548tr, an unprecedented achievement in its financial performance. The N3.297 trillion profit declared for 2023 is the highest since the company’s inception, 46 years ago.
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