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NNPCL declares N674b profit after tax …says major crude oil trunk lines shut down in Niger Delta

NNPCL declares N674b profit after tax ...says major crude oil trunk lines shut down in Niger Delta

NNPCL declares N674b profit after tax …says major crude oil trunk lines shut down in Niger Delta 

The Group Chief Executive Officer, Nigerian National Petroleum Company Limited, Mele Kyari, on Tuesday, announced that the NNPC as a corporation grew its profit after tax and assets from N287bn and N15.86tn in 2020, to N674bn and N16.3tn in 2021, respectively.

Kyari, who disclosed this at a press conference in Abuja, said the 2021 profit was contained in the Group Audited Financial Statement of the oil firm for the year ended December 31, 2021.

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He also told journalists that all major trunk lines conveying crude oil to export terminals were currently shut down in order to avert further oil theft in the Niger Delta.

He was, however, quick to state that efforts by the oil firm, security agencies and surveillance contractors were paying off, as about 400,000 barrels of crude would be added to the country’s output in the next few days.

The NNPC boss said, “In September 2021, Mr. President graciously approved the publication of the 2020 NNPC Group Audited Financial Statement, in which NNPC declared a profit after tax of N287bn for the first time in its 44 years.

“Despite our challenging operating environment, we strongly believe that NNPC has the potential to sustainably deliver better value to its esteemed shareholders.

“Today I am happy to announce that the Board of NNPC Limited has approved 2021 audited financial statements, and NNPC progressed to a new performance level, from N287bn profit in 2020 to a N674bn profit after tax in 2021, climbing higher by 134.8 per cent year-on-year profit growth.”

He added, “The group’s financial position recorded an increase in total assets from N15.86tn in 2020 to N16.27tn in 2021, while our total liabilities decreased by 8.3 per cent from N14.68tn in 2020 to N13.46tn in 2021.

“Our shareholders fund position grew to N2.81tn, representing 144 per cent year-on-year. The performance would have been greater if the operations in the year under review were free from incessant vandalism, crude oil and products’ theft among others.”

Asked to state the main drivers of the profit, Kyari replied, “Our core business is upstream, gas and power. So the key drivers to this performance are coming from the upstream and the gas and power.”

Kyari insisted that the above scenario did not mean that 600,000bpd of oil was stolen, describing it as opportunity lost because of the shutdown of production facilities.

“But I’m happy to also say that the interventions that we have seen in terms of the security measures we have taken, in collaboration with the government security agencies, with the private surveillance and security contractors, and the investments that we have done, we believe that in the next couple of days we will be able to bring back the Trans Niger Pipeline,” he said.

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