NAIRAMETRICS
Nigeria’s state oil company, NNPC Limited, has released its 2023 full-year audited results, showing a profit after tax of N3.29 trillion.
This represents a significant increase from the N2.5 trillion profit reported in 2022, marking a 31.6% year-on-year growth and the largest corporate profit reported by any Nigerian company, according to Nairametrics records.
Total revenue generated for the year was N23.9 trillion or $26.4 billion using the exchange rate of N907/$1 which was the closing rate used for the year 2023.
Revenue from Nigeria amounted to N21.3 trillion , representing 89.1% of total revenue, indicating that the corporation earned the majority of its income domestically rather than from international operations.
Key highlights
- Revenue – N23.9 trillion vs N8.8 trillion (171.5%)
- Gross Profit – N7 trillion vs N2.1 trillion (233%)
- Operating Expenses – N3.1 trillion vs N1.7 trillion (80.9%)
- Operating Profit – N4.3 trillion vs N694.2 billion (525%)
- Pre-tax Profit – N5.9 trillion vs N1.8 trillion (227%)
- Income Tax – N2.69 trillion
- Profit after tax – N3.29 trillion vs N2.5 trillion (30.6%)
- Total Assets – N246.8 trillion vs N58.5 trillion (321%)
- Cash and Bank Balances – N7.1 trillion vs N2.3 trillion (200%)
- Cash flow from operations – N10 trillion vs N4.6 trillion (117.3%)
- Cash flow from investing – N3.7 trillion vs N2.1 trillion (76.1%)
- NNPC Ltd reported that it does not have any external loans.
Total Assets surpass Nigeria’s nominal GDP
Even more remarkable is the company’s total assets, which were reported at a staggering N246.8 trillion ($272 billion using N907/$1 or $154 billion using N1,600/$1 as of August 2024) surpassing Nigeria’s nominal gross domestic product (GDP).
According to the National Bureau of Statistics, Nigeria’s nominal GDP was N229.9 trillion in the year ended December 2023.
The significant size of the oil company’s total assets was driven by its trade and other receivables, which stood at N162.9 trillion, and fixed assets (property, plants, and equipment) valued at N67.8 trillion, bringing the total to N230.7 trillion.
The increase in the value of trade and other receivables, as well as fixed assets, can be attributed to the impact of foreign currency translation, as most of the company’s assets are denominated in dollars.
Additionally, NNPC Ltd’s revenue from crude oil sales is also dollarized, which likely contributed significantly to the rise in naira terms.
The company reported that its currency translation rate for fixed assets was N907.1/$1 compared to N448.4/$1 in 2022.
For revenue, the company used an average rate of N644.2/$1, compared to N431.3/$1 in the previous year.
A cursory review of the results reveals that the company’s revenue of N23.9 trillion is the largest it has ever reported.
