NNPC’s oil, non-oil assets grow to N4.67trn – Report

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The Nigerian National Petroleum Corporation (NNPC) has released the 2019 audited financial statement showing that the net value of its oil and non-oil assets appreciated by 18.53 per cent to N4.67 trillion in 2019, up from N3.94 trillion recorded in the 2018 financial year.

NNPC’s oil and non-oil assets, according to the report include evaluation and exploration assets, oil and gas properties, other property, plant and equipment.

The corporation put the cost of the assets as of January 1, 2019 at N4.9 trillion.

As of December 31, 2019, the report said the cost rose to N5.84 trillion in comparison to net book value of N4.01 trillion as of January 1, 2018 and N4.9 trillion as of December 31, 2018.

The value of depreciation of the assets stood at N1.18 trillion as at December 31, 2019, compared with N967.24 billion as at December 31, 2018, while the net book value, also known as net assets value, stood at N4.67 trillion as at December 31, 2019, compared to N3.94 trillion as at December 31, 2018.

Giving a breakdown of the assets, the audited report stated that the net assets value of the evaluation and exploration assets stood at N891.01 billion, compared to N542.04 billion in 2018; oil and gas properties dropped to N3.12 trillion in 2019, from N3.17 trillion recorded in 2018; while other property, plant and equipment’s net book value stood at N657.32 billion in 2019, compared to N3.94 trillion recorded in 2018.

Under its oil and gas properties, the NNPC valued its gas pipelines and other facilities at N334.37 billion in 2019, compared to N247.24 billion in 2018; while decommissioning cost stood at N557.43 billion in 2019, compared to N531.73 billion.

The NNPC puts the value of its oil pipelines/storage and depot system at N258.43 billion in 2019, compared to N280.22 billion in 2018; oil wells were valued at N981.15 billion in 2019, compared to N796.34 billion; Kaduna Refinery, Warri Refinery and Port Harcourt refinery were valued at N146.18 billion, N101.16 billion and N265.19 billion in 2019, respectively, compared to their net book value of N156.41 billion, N108.31 billion and N274.89 billion in 2018, respectively.

In addition, the net book value of Kaduna Petrochemical Company, Warri Petrochemical Company and assets in progress stood at N36.19 billion, N30.62 billion and N406.48 billion in 2019, respectively; compared to N38.46 billion, N32.06 billion and N702.6 billion in 2018, respectively.

Furthermore, while the NNPC said its loss for the year 2019 stood at N1.76 billion, its Group’s total comprehensive loss stood at N20.18 billion, compared with N68.95 billion in 2018.

While the NNPC posted revenue of N4.63 trillion in the 2019 financials, compared to N4.74 trillion in 2018, its major cost centres included cost of sales, which stood at N3.92 trillion in 2019, compared to N4.14 trillion; general and administrative expenses dropped to N695.95 billion in 2019 from N894.28 billion in 2018 while net impairment loss on financial assets stood at N273.61 billion, from N468.08 billion in 2018.

As a result, the NNPC posted an operating loss of N301.61 billion in 2019, compared with N771.64 billion in 2018.

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