NNPC Assets Hit N246.8trn, Rakes N14trn from Crude Oil Sales

By Adedapo Adesanya

The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it got N14 trillion from crude oil sales in 2023 versus N3.5 trillion in the preceding year, with its total assets reaching N246.8 trillion versus N58.5 trillion in the 2022 financial year, indicating a 321 per cent increase.

The company disclosed this information in its 2023 full-year audited results, which were released to the public on Tuesday after a press briefing on Monday in Abuja.

Details of the results showed significant increases in profit after tax, revenue generated, and operating profit as well as zero external loans in the period under review.

Recall that President Bola Tinubu announced an end to payment of subsidy on premium motor spirit (PMS), commonly known as petrol, on May 29, 2023. This declaration has increased product sales as evident in the NNPC numbers.

Analysis revealed that NNPC posted a post-tax profit of N3.29 trillion last year compared with the N2.5 trillion profit reported in 2022, though lower in Dollar terms due to the devaluation of the Naira.

In the results, the oil firm disclosed that the total revenue generated for the year went up by 171.5 per cent to N23.9 trillion from N8.8 trillion in 2022, while operating expenses were up by 80.9 per cent to N3.1 trillion from N1.7 trillion in 2022.

NNPC gross profit rose by 233 per cent to N7 trillion from N2.1 trillion, as operating profit leapt by 525 per cent to N4.3 trillion from N694.2 billion, amounting to a pre-tax profit of N5.9 trillion against N1.8 trillion, indicating a 227 per cent growth while income tax amounted to N2.69 trillion.

Cash and bank balances stood at N7.1 trillion versus N2.3 trillion, with cash flow from operations at N10 trillion compared with the previous year’s N4.6 trillion, as cash flow from investing stood at N3.7 trillion, in contrast to N2.1 trillion a year earlier.

The increase in the value of trade and other receivables, as well as fixed assets, can be attributed to the spate of devaluations of the Naira in the year under review as most of the company’s assets are denominated in Dollars.

It was observed that revenue from petroleum product sales like fuel, kerosene, diesel, naptha, and other related products was N7.1 trillion compared to N4.5 trillion the previous year, while natural gas sold to third parties amounted to N2.3 trillion versus N683 billion in the previous year.