By John Ikani
The Nigerian National Petroleum Corporation (NNPC) has published its Audited Financial Statements (AFS) for the year 2020 on its website.
According to the result, NNPC recorded profit growth despite a 20% decline in its revenue for the year. Specifically, its revenue declined from N4.63 trillion recorded in 2019 to N3.72 trillion in 2020.
A statement by the Group General Manager, Public Affairs Division, Garba Deen Muhammad, attributed the revenue downturn to covid-19 pandemic which affected global crude oil prices.
Recall that the cost of crude oil in the global market slumped to a record low in the year 2020, during the heat of the pandemic.
He said, “In compliance with the president’s directive, the NNPC has fulfilled this very important statutory requirement by publishing its Audited Financial Statements.
“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 N287 billion in 2020, for the first time in 44 years.”
A breakdown of the revenue from customers shows that a total of N2.28 trillion was made from the sales of petroleum products, accounting for 61.2% of the recorded revenue. NNPC generated N828.13 billion from the sales of crude oil, representing 22.3% of the total revenue.
Other items on the breakdown of the revenue include, sales from natural gas at N524.4 billion and revenue from services at N89.96 billion.
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 N4.56trillion in 2020 as against N4.44trillion in 2019, the AFS further revealed