The Nigerian National Petroleum Company Ltd (NNPCL) has announced a historic net profit of N3.3 trillion for the 2023 financial year, marking a significant 27.6% increase from the N2.58 trillion reported in 2022. This achievement represents the highest profit in NNPCL’s history since its transition to a profit-oriented entity following the enactment of the Petroleum Industry Act (PIA) in 2020.
The results were revealed during the company’s Annual General Meeting (AGM) on Monday, underscoring NNPCL’s financial strength and strategic growth. Mele Kyari, the Group Chief Executive Officer (GCEO), highlighted the corporation’s sustained profitability as a testament to its operational efficiency and strategic foresight, positioning NNPCL as a thriving entity in the global energy sector.
Executive Vice President and Chief Financial Officer Umar Ajiya Isa pointed out that NNPCL generated an impressive N23.99 trillion in revenue in 2023, supported by robust market positioning and efficient operations. The company reported a gross profit of N7.04 trillion and an operating profit of N4.34 trillion, culminating in a net profit of N3.3 trillion. These figures reflect a net profit margin of 14% and an operating profit margin of 18%.
NNPCL’s 2023 financial results also demonstrated a 12% return on equity (ROE) and a balanced current ratio of 1:1, indicating sound asset and liability management. The company maintained a debt-to-assets ratio of just 1.8%, highlighting its prudent financial management. Additionally, NNPCL’s noncurrent assets doubled, driven by strategic investments and the transfer of joint venture (JV) assets in line with the PIA, bringing total assets to N246.82 trillion.
The company declared a final dividend of N2.101 trillion, following an interim dividend of N536.64 billion, resulting in a dividend payout ratio of 80%. With earnings per share (EPS) of N16.49 and a dividend per share (DPS) of N11.11, NNPCL provided substantial returns to its shareholders.
Looking ahead, NNPCL is focused on achieving an oil production target of 2,000,000 barrels per day and is actively collaborating with security stakeholders to combat oil theft and pipeline vandalism, in line with directives from President Bola Tinubu.