NNPC’s most valuable subsidiary grows profit by 125% to N2.83tn

The National Petroleum Investment Management Services, a subsidiary of the Nigerian National Petroleum Corporation, more than doubled its profit to N2.83 trillion last year, its newly released 2019 financial statement has shown.

NAPIMS is a corporate services unit in the Exploration and Production Directorate of the NNPC charged with the responsibility of managing the Nigerian government’s investment in the upstream sector of the oil and gas industry.

The corporation’s most profitable subsidiary grew its profit by 124.6 percent last year from N1.26 trillion in 2018.

Its revenue declined to N4.16 trillion last year from N4.72 trillion in 2018 while its cost of sales tumbled to N727.47 billion from N1.74 trillion.

The company’s total assets rose to N17.91 trillion as of December 2019 from N17.38 trillion a year ago while its total liabilities fell to N5.60 trillion from N6.63 trillion.

The NNPC released its 2019 audited financial statement and those of its subsidiaries on Thursday, saying its loss profile dropped by 99.7 percent from N803 billion in 2018 to N1.7 billion in 2019.

A statement by the corporation’s spokesman, Dr Kennie Obateru, quoted the Chief Financial Officer, Mr Umar Ajiya, as saying that the improved performance in the 2019 financial year was driven mainly by cost optimisation, contracts renegotiation and operational efficiency.

He said, “The 2019 AFS goes further to demonstrate our unwavering commitment to the principle of Transparency, Accountability and Performance Excellence while the outlook for 2020 looks promising in view of the management’s strong drive to prune down running cost and grow revenues.”

The statement noted that the Group Managing Director of NNPC, Mallam Mele Kyari, had promised to sustain the publication of the corporation’s audited financial statement as part of efforts to deepen transparency and accountability and keep stakeholders abreast of NNPC operations.