UPDATED: NNPC posts N5.4 trillion net profit in 2024

The Nigerian National Petroleum Company Limited (NNPC Ltd.) announced on Monday that it recorded a net profit of N5.4 trillion as of the close of the financial year ending December 31, 2024.

Join the Premium Times WhatsApp Community For Quick Access To News and Happenings Around You.

Open in WhatsApp

The profit, according to the company, reflects a 64 per cent year-on-year growth, signalling the impact of higher production volumes, cost-cutting measures and enhanced operational efficiency across its assets.

Speaking at a press conference on Monday, the Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, said the release of the audited financial statement is a testament to the company’s commitment to transparency and accountability.

“The 2024 financial results were unveiled today. In 2024, NNPC Limited achieved a profit after tax of N5.4 trillion, representing 64 per cent year-on-year growth, supported by N45.1 trillion in revenue, representing 88 per cent year-on-year growth. The journey began in 2021 with the passage of the Petroleum Industry Act (PIA). NNPC is now largely a limited liability company.

“Our engagement today is intentional, I mean it reflects our evolving focus on becoming a truly limited liability company, a commercially driven entity as intended in the PIA. The 2024 financial results we unveiled today are more than balance sheets and performance indicators. They embody discipline, progress, and the dedication of our teams nationwide,” Mr Ojulari said.

This outcome, he said, was propelled by several critical drivers: enhanced operational efficiency across the NNPC assets, the positive impact of downstream market reforms, and its unwavering commitment to cost discipline.

“Financially, we have never been stronger or better positioned for tomorrow. Strategically, this financial capacity powers our ambitious national initiatives.

Stay Ahead with Premium Times

Add as a preferred source on Google

“We are vigorously advancing key gas infrastructure projects such as the Ajaokuta-Kaduna-Kano pipeline project, and the Obiafu-Obrikom-Oben, (OB3) pipelines, to unlock a gas-powered economy, reviewing technical and commercial viability of our refineries to strengthen domestic energy security, and pursuing a $60 billion investment pipeline to expand oil and gas output.”

Mr Ojulari said the NNPC Ltd.’s goal remains to raise crude oil production to 3 million barrels per day by 2030 and grow gas production to 12 billion cubic feet per day.

Speaking further, he said, the company recorded earnings per share of N27.07 representing a 64 per cent year-on-year growth.

The earnings, he said, highlight the positive momentum of the company’s ongoing transformation and its unwavering commitment from the workforce.

“They offer a solid foundation for the ambitious growth ahead, in line with President Bola Ahmed Tinubu’s mandate, and reaffirm our commitment to delivering value to Nigerians. Our transformation is anchored on transparency, innovation, and disciplined growth.

READ ALSO: How NNPC paid over $51 million in questionable circumstances to contractors – Auditor-General

“We are positioning NNPC Limited as a globally competitive energy company capable of delivering sustainable returns while powering the future of Nigeria and Africa,” he added.

NNPC Ltd issued its first audited accounts for the first time in 43 years in 2020 and transitioned into a limited liability company two years later as part of efforts to free the monolithic enterprise from government control.

In 2021, NNPC declared a profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss to N1.7 billion in 2019.

However, in 2020, it posted its ‘first ever’ profit of N287 billion, recorded a N674.1 billion profit in 2021, and in 2022, the profit grew to N2.5 trillion, an unprecedented achievement in its financial performance.

Last year, the company declared N3.297 trillion profit for 2023.