NPDC posts N179.1bn profit in 2018 — Report

The Nigerian Petroleum Development Company (NPDC), an upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), made N179.1 billion profit after tax from its operations in 2018.

The NNPC disclosed this in its 2018 Audited Financial Statements (AFS), released in Abuja.

It was reported that the corporation’s account was last audited in 2016 under the watch of Dr Ibe Kachikwu as the Group Managing Director of the Corporation.

“The AFS of the NPDC indicated that a profit after tax of over N179.1 billion came as significant improvement from the 2017 profit after tax of over N157.4 billion.

“During the period, NPDC posted revenue of over N1.3 trillion compared to the 2017 revenue of over N882.3 billion,” it said.

It added that the National Engineering and Technical Company (NETCO), another upstream subsidiary of the corporation, indicated a profit after tax of over N4.5 billion for 2018, a remarkable improvement from the previous year record of over N2.4 billion.

The AFS further indicated that the NNPC flagship subsidiary had a total asset of over N5.3 trillion within the period, compared to the N4.007 trillion asset recorded in 2017.

It noted that the Nigeria Gas Company (NGC), recorded a profit after tax of over N13.2 billion with a comprehensive annual income of about N19.9 billion.

It valued the NGC total assets in 2018 at over N251.7 billion compared to N196 billion in 2017.

In the Downstream Sector, the Petroleum Products Marketing Company (PPMC) for the first time, recorded gross profit of N24.3 billion in the year under review.

According to the report, NNPC Retail Limited posts profit after tax of over N2.2 billion compared to the N1.8 billion recorded in the preceding year.

The AFS also indicated that National Petroleum Investment Management Services (NAPIMS), posted revenue of N5.04 trillion in 2018 and profit of N1.01 trillion, with total assets under the portfolio of the service valued at N18.6 trillion.

“NNPC and its partners are considering modalities to cap crude oil cost per litre at 10 dollars by 2021, in order to ensure that Nigeria benefits more from the nation’s hydrocarbon resources.

“The Integrated Data Services Limited (IDSL), an NNPC Subsidiary in charge of acquisition and interpretation of seismic data, posted a total comprehensive income of about N3.2 billion with profit of about N154 million within the period.

“In all, the audited financial statements of the 19 subsidiaries and the corporate service unit(NAPIMS), were laid bare in a novel move to enshrine high level transparency and accountability in the National Oil Company,’’ it added.

The AFS named the key achievements recorded in the year under review to include, Recapitalization of PPMC through transfer of the negative revenue reserve to CHQ.

It said that NNPC achieved a second straight year without incurring additional cash call arrears and repayment of over 2.7 billion dollars of total cash call arrears due to industry operators.

These entities, it said included, NAPIMS, IDSL, NPDC, NETCO, Port Harcourt Refining Company (PHRC), Warri Refining and Petrochemicals Limited (WRPC), and Kaduna Refining and Petrochemicals Company (KRPC).

Others were, Duke Oil Services (UK) Limited, Duke Oil Incorporated, Duke Global Energy Investment Limited, The Wheel Insurance, Petroleum Products Marketing Company (PPMC) Nigerian Pipelines and Storage Company (NPSC) NNPC Retail Limited and NIDAS UK Agency.

Also, NIDAS Shipping Services, NIDAS Marine FS, Nigerian Gas Marketing Company (NGMC), Nigerian Gas Company (NGC), and N-Gas among the entities.

The 2018 AFS covered the corporation’s 19 Strategic Business Units (SBUs), and a Corporate Services Unit (CSU).

It also revealed that the release of the AFS was in compliance with the directive of President Muhammadu Buhari and his Administration’s commitment to accountability and transparency by way of full disclosures of government agencies’ transactions.

“It is also in accordance with International Financial Reporting Standards, apart from being a requirement for the Companies and Allied Matters Act (CAMA).

“The 2018 reports which posted positives in many of the National Oil Company’s Upstream going concerns, however, recorded low figures in the Midstream.

“This was unsurprisingly because of the long downtime of the nation’s four refineries in Port Harcourt, Warri and Kadunam,’’ it said.

However, the report revealed that the corporation had begun the process of comprehensive diagnostic assessment of the refineries that would culminate into their thorough rehabilitation, starting with Port Harcourt and Warri refineries.

It added that proposals to change the refineries’ business models to that similar to Nigeria Liquefied Natural Gas Limited’s (NLNG), which had been a success story over the years, was also afoot.

It added that the 2019 Audited account report was already being prepared and expected to be ready in a couple of months.