Corporation's subsidiary declares N15.8bn profit after tax in 2016

The Nigerian National Petroleum Corporation (NNPC) says Nigerian Gas Processing and Transportation Company Ltd. (NGPTC), one of its subsidiary companies, has declared a profit after tax of N15.81 billion in 2016.

The NNPC disclosed this in Abuja on Sunday in a statement by the corporation’s Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu.

Ughamadu explained that the profit was due to the write-back of deferred tax of N8.05 billion in 2015 and part of the dividends of the ongoing transformation.

The Chief Operating Officer and Chairman of NGPTC, Mr Saidu Mohammed, disclosed that the profit before tax for the year ended Dec. 31, 2016 was N24.4 billion as against N20.9 billion in 2015.

“This represents an increment of 16.8 per cent, while the profit after tax reduced from N22.6 billion in 2015 to N15.81 billion in 2016.

“Also, earnings per share reduced from N4,510 in 2015 to N3,163 for 2016.

“The total revenue generated from gas sold and transmitted during 2016 amounted to N219.5 billion as against N155.5 billion in 2015, representing a 41 per cent increase over the previous year,” he said.

Ughamadu said that the increase was due to revenue generated from application of higher transportation tariff and new commercial customers that came on stream.

“An overview of NGPTC’s business performance for the year 2016 shows that 307 billion standard cubic feet (bscf) of gas was sold and transmitted as against the planned 463 bscf, thereby achieving 66.4 per cent of its target.

“The year 2016 also reveals a performance of four per cent below the volume of 319.25 bscf sold in 2015,” the public affairs manager said.

He noted that the company was confronted with the challenges of incessant vandalism of the Escravos-Lagos Pipeline System 1 (ELPS 1), Trans Forcados pipeline and evacuation bottleneck of condensate in 2016.

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He acknowledged the continued support of NGPTC’s host communities for the sustained peace and tranquility in the company’s areas of operation.

The NGPTC, formerly Nigerian Gas Company (NGC) Ltd., a fully-owned subsidiary of the NNPC, was incorporated in 1981 and commenced business in 1988.

NGC was renamed NGPTC in 2016 with a mandate to process and transport natural gas domestically and for export.