NNPC declares ₦674 billion profit after tax for 2021

The Nigerian National Petroleum Company (NNPC) Limited on Tuesday, October 04, 2022, declared a profit after tax of N674bn.

Group Chief Executive Officer (GCEO) of NNPC Limited, Engr. Mele Kyari, who made the announcement via the verified Twitter handle of the company on Tuesday, said the development followed the approval of the 2021 audited financial statements by the Board of the oil company.

He added that the NNPC Limited has progressed to a new performance level from N287bn profit in 2020 to N674bn profit after tax in 2021, moving higher by 134.8% year on year profit growth.

Kyari wrote: “Today I’m happy to announce that the Board of NNPC has approved 2021 audited financial statements and NNPC has progressed to a new performance level, from N287bn profit in 2020 to N674bn profit after tax in 2021, climbing higher by 134.8% YoY profit growth.”

The mathematics: Kyari said the significant increase in revenue and a less proportionate increase in the cost of sales resulting in a 1,556 percent increase in gross profit.

“Other factors that contributed to the high profitability of the NNPC Group is the outcome of the N173.7 billion arising from reconciliation with Federal Inland Revenue Service (FIRS), a stronger emphasis on performance management, rationalisation of non-essential expenditure and implementation of the transparency and accountability agenda", he added.

What you should know: According to NNPC, total assets increased by 2.6 percent from N15.86 trillion in 2020 to N16.27 trillion, while total liabilities decreased by 8.3 percent from N14.68 trillion in 2020 to N13.46 trillion in 2021.

It added that the shareholders’ fund position of the NNPC Group also followed an upward trend as it rose to N2.81 trillion in 2021, as against N1.15 trillion in 2020. This represents a 144 per cent increase at the end of December 2021.