Despite 20% decline in topline, NNPC profit increase in 2020

The Nigerian National Petroleum Corporation (NNPC) posted a profit after tax of N287.23 billion in 2020, representing a significant growth compared to a loss of N1.76 billion recorded in the previous year.

This is contained in the recently released audited financial statements for the group, published on its website.

According to the result, NNPC recorded profit growth despite a 20% decline in its revenue for the year. Specifically, its revenue declined from N4.63 trillion recorded in 2019 to N3.72 trillion in 2020. This could be attributed to the downturn caused by the covid-19 pandemic, which affected global crude oil prices.

Notably, revenue from sales of crude oil and petroleum products declined from N2.58 trillion recorded in the previous year to N2.13 trillion in 2020. This represents a 17% year-on-year decline in crude revenue. Recall that the cost of crude oil in the global market slumped to a record low in the year 2020, during the heat of the pandemic.A breakdown of the revenue from customers shows that a total of N2.28 trillion was made from the sales of petroleum products, accounting for 61.2% of the recorded revenue. NNPC generated N828.13 billion from the sales of crude oil, representing 22.3% of the total revenue.