TheCable

The Nigerian National Petroleum Corporation (NNPC) has announced various measures adopted to achieve its N287 billion profit after tax (PAT) in the 2020 financial year.

Mele Kyari, NNPC group managing director, gave the insight during a recent press conference at the national oil company towers in Abuja.

On August 26, NNPC posted N287 billion profit for the year ended December 31, 2020.

Kyari attributed the turnaround from a loss of N803 billion in 2018 to a profit of N287 billion in 2020 to “the aggressive implementation of cost-cutting measures, improved efficiency through business automation, emphasis on commercially-focused investments and non-interference in the management of the Corporation from any quarters.

“The Corporation saved a lot of cost through contract renegotiation by up to 30% on the heels of the Covid-19 pandemic, introduction of technology that drastically cut travel cost through reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses”.

The GMD added that the prioritisation of investment and staff welfare also helped in boosting the corporation’s overall productivity and bottom line.

In his remarks, Timipre Sylva, minister of state for petroleum resources, congratulated Kyari, NNPC’s management and staff on the feat of posting profit for the first time since its incorporation in 1977.

Sylva said NNPC’s emergence from loss into profitability is coming shortly after the signing of the Petroleum Industry Act (PIA) into law.

NNPC had also announced that it is considering an initial public offer (IPO) of its shares after declaring N287 billion profit.

However, Kyari said: “There is no date on it, but there is a possibility of doing this. Obviously because you have made profit today doesn’t mean you are ready for IPO. It is a very, very long, tedious process”.