NNPC Posts N3.3trn Profit, N2.1trn Dividend For 2023

The Nigerian National Petroleum Company (NNPC) Limited has declared a net profit of N3.297 trillion at the close of the financial year which ended in December 2023.

This indicated an increase of N700 billion or 28 per cent compared to the 2022 profit of N2.548 trillion.

The NNPC said it has pledged 221,000 barrels per day (bpd) to meet its debt financing obligations, totalling $5.5 billion.

Data obtained from the 2023 Audited Financial Statement (AFS) of the national oil firm indicated that 90,000 barrels per day was pledged to service a $3.3 billion loan for Project Gazelle Forex stabilisation arranged and coordinated by the African Import Export Bank (AfreximBank).

The company also said it also pledged another 35,000bpd for a $1 billion loan to finance the Acquisition of Dangote Refinery equity stake (now fully repaid) while 67,000 barrels per day was pledged to service a $1 billion debt for the rehabilitation of old & new Port Harcourt Refinery, with 210 barrels per day refining capacity;

For Projects Brogues and Eagle 2, the report showed that 8,000bpd and 21,000bpd were pledged as payment for $0.3 billion and $0.950 billion loans to finance OML 86/88 Acquisition (now fully repaid) by the NNPC E&P Limited (NEPL) and General Corporate Purpose loan to NEPL respectively.

The NNPC, announced the release of its 2023 Audited Financial Statement (AFS), on Monday, declared a net profit of N3.297 trillion at the close of the financial year which ended in December 2023.

This indicated an increase of N700 billion or 28 per cent compared to the 2022 profit of N2.548 trillion.

The NNPC, which announced the release of its 2023 Audited Financial Statement (AFS), in Abuja on Monday, said it is targeting 2mbpd crude oil production by December 2024.

Chief financial officer of the company, Umar Ajiya, who made these known said the NNPC Ltd will announce Initial Public offer (IPO) once the shareholders and Board make a decision.

NNPCL, said the CFO, in the period under review recorded “N243.99 trillion revenue, gross revenue of N243.99 trillion, gross profit of N7 trillion, operating profit of N4.3 trillion, Profit Before Tax of N5.9 trillion and Net Profit of N3.29 trillion.”

He said the profit grew by 28% from the N2.54 trillion recorded in 2022, N674.1 billion in 2021, N287.0 billion in 2020, N-1.7billion in 2019, and N-1.7billion.

 

“Now, in 2023, profit has also grown by 28” from N2.5 trillion to N3.297 trillion, said Ajiya.

 

The CFO depicted the profit as a reflection of the commitment and hard work of management and staff of NNPCL who have worked day and night to ensure this company is sustainable and in growth trajectory.

 

He said the 2023 figure is the highest since the inception of the company. He said the profit is a reflection of the company’s 12 agenda.

 

Ajiya said in the period under review, consequently, NNPCL has declared N2.10 trillion dividends.

 

On the assets side, he said in 2019, NNPC was literally holding an asset base of N8 trillion and then moved to N9.5 trillion in 2020, by 2021 under the transfer of the JV assets the company’s assets grew to N15.3 trillion.

 

He added that by 2022, resulting from the transfer of the asset, it grew to N37 trillion of assets.

 

Ajiya said “That has doubled in 2023, resulting from investments. We are expected to produce our financial statement in dollars and translate it to Naira.”

 

He revealed that NNPC has fully repaid $1billion equity stake to Dangote Petroleum Refinery with 35,000barrel per day of crude oil.

 

The CFO added that “We took  $1billion from Afreximbank to rehabilitate Port Harcourt Refinery. That is still ongoing.”

 

Asked when the company will sell its shares to the public and the quantity of shares, he said only the board and shareholders can give NNPC the approval to sell shares and the volume to sell.

 

Ajiya said, “At the end of 2024, you will have sufficient profitability indices to share with our investors. But of course, determining the amount of quantum to divest, is the prerogative of the shareholders and the board. We as a company cannot tell you this is the time shares will be sold but the company will go public or this is the amount that will be sold.

 

“We have a board and the board also reports to shareholders. So that kind of decision is for shareholders and the board and we will execute.”

 

He said NNPC has never paid subsidies to anyone.

 

Speaking, executive vice president Upstream, Oritsemeyiwa Eyesan said the company has succeeded in reducing the cost of crude oil production from $34/barrel to $30/barrel.

 

She said NNPC, which is currently producing 1.7million barrels per day of crude oil and condensate, is targeting 2mb/d by the end of 2024.

 

“We have sufficient crude oil. We do not need to import for our refineries, ” she added.

 

Continuing on crude oil production, she said, “We increased production to as much as 1.7mb/d in August. “This is just one snap shot represented. But if I am taking my year to date production, it is 1.558mb/d of crude and condensate. The condensate amount there is 229,000 b/d.”

 

Meanwhile, executive vice president, Power and New Energy, Lekan Ogunleye said the total gas production in Nigeria is about 26.289billion standard cubic feet (bscuf) per day.

 

He further noted that about 45 per cent of this total quantum is the amount for the export market from the NLNG.

 

He added that about 2.799bscuf/d is directed towards export.

 

The domestic market, according to Ogunleye, gets the daily quantum of about 1.474bscuf per day.

 

He said the company is expecting 25% growth in the next 12 months

 

The executive vice president, Downstream, Dapo Segun  said its 60,000 barrels Port Harcourt Refinery will get approval to distribute products to the public in September 2024.

 

He said the refinery will not release its off-spec production, which should be ready in the next few days to the public until NNPC gets the NMDPRA.

 

He recalled that NNPCL did the mechanical completion of the refinery last year, urging Nigerians to be patient.

 

He revealed 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 declared that “So, 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.

 

“So 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.

 

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.

 

Segun said “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.”