NNPCL FY’23: Kyari Stands tall in spite of Disruptors’ Intrigues

By Julius Akpovire

Mele Kyari, the group chief executive officer of the Nigerian National Petroleum Company Limited, NNPCL, has again demonstrated the words of American Singer and actor, Frank Sinatra that “the best revenge is massive success.”

Despite the multiple campaigns of calumny, lies, plots and character assassination sponsored by the nation’s oil saboteurs against the NNPCL, Kyari has continued to show professionalism and excellence with visible and outstanding results in the Nigerian oil and gas sector.

We are familiar with individuals who take over bourgeoning establishments and further increase their worth on face value along the line, but it sounds like a fairy tale to have a professional who takes over a near-comatose, demoralized, and corrupt-laden organization and makes a corporate giant out of it. This best describes the transparent reformer and hardworking NNPCL GCEO’s strides at the national oil company.

While detractors and forces of evil in the nation are busy plotting against the NNPCL chief because of their personal interests, Kyari has remained resilient, professional and focused in his bid to change the bad narratives of the oil and gas sector. He has painstakingly introduced several innovations into the oil company, which had since positioned the NNPCL on an upward trajectory.

With his TAPE Agenda (Transparency, Accountability and Performance Excellence), Kyari has turned around the oil company, making it competitive at the global market and thereby increasing the nation’s prosperity.

Kyari’s efforts have also rekindled investor confidence in the sector. He has been able to reduce pipeline vandalization and crude oil thefts in the Niger Delta areas. As against the trend, today, Nigeria’s crude oil production has increased to approximately 1.78 million barrels per day (inclusive of condensate).

Kyari’s programmes and policies have enhanced transparency and efficiency in the operations of the company which has led to its continued growth in profitability since he assumed office in 2019 – a drastic turn from consistent losses the NNPC had suffered before 2019.

Despite challenging economic conditions, NNPCL, on Monday, announced a remarkable milestone by reporting a record-breaking net profit of N3.3 trillion for the 2023 financial year, marking a substantial 27.6% increase from the N2.58 trillion in the corresponding period of 2022.

The declaration is the highest profits ever made in NNPC’s history, and since it transitioned to a profit-making entity in 2020 after the enactment of the PIA into law.

It’s worthy of note that in 2022, the company posted its second consecutive year of ‘profit’ announcing N674.1 billion in the 2021 financial period and growing it from N287 billion in 2020. The figure represented an increase of N387 billion or 134.8% when compared to the previous N287 billion recorded in 2020.

NNPC’s sustained profitability reflects a corporation that is not merely surviving but thriving, demonstrating robust outcomes that underscore NNPCL’s operational efficiency and strategic foresight.

Speaking on the company’s 2023 results, Umar Ajiya Isa, executive vice president and chief financial officer of NNPCL, noted that the NNPCL achieved a remarkable ₦23.99 trillion in revenue, showcasing its robust market position and operational efficiency. With a gross profit of ₦7.04 trillion and an operating profit of ₦4.34 trillion, NNPCL achieved a net profit of ₦3.3 trillion at the end of 2023.These impressive results signify a solid net profit margin of 14% and an operating profit margin of 18%, demonstrating the company’s adeptness at converting revenue into substantial profits. In addition, the results showcased a 12% return on equity (ROE) as of FY2023 and maintained a current ratio of 1:1, reflecting a balanced approach to asset and liability management. Notably, the company’s debt-to-assets ratio stood at a mere 1.8%, highlighting prudent financial management and a robust balance sheet.

Furthermore, the national oil company doubled its non-current assets, building on a remarkable 141% growth from the previous year. NNPCL noted that the asset expansion was primarily driven by strategic investments and the transfer of joint venture (JV) assets in alignment with the Petroleum Industry Act (PIA). The company’s total assets now stand at ₦246.82 trillion, reinforcing its status as a formidable player in the global energy sector.

NNPCL also declared a final dividend of ₦2.101 trillion, following an interim dividend of ₦536.64 billion. This brought the dividend payout ratio to an impressive 80%, reflecting the company’s strong profitability and confidence in its continued success. With earnings per share (EPS) of ₦16.49 and a dividend per share (DPS) of ₦11.11, shareholders have reaped significant returns from their investment in NNPC Limited.

On NNPCL’s future outlook, Ajiya stated that NNPCL has set its sight on achieving oil production of 2,000,000barrels/day and is currently working with the relevant security stakeholders to curb oil theft and pipeline vandalism in line with President Bola Tinubu’s directives.

Ajia who also hinted that the NNPC Ltd will announce Initial Public Offer once the shareholders and board make a decision, debunked claims on subsidy payment, saying that no oil marketer has been paid fuel subsidy in the last eight to nine months by the company.

In conclusion, Kyari, the silent achiever, has done well for Nigeria. Rather than victimizing him out of hate, he should be applauded for his sacrificial efforts in revolutionizing the oil and gas sector. It’s obvious Kyari and his energetic team at the NNPCL mean well for the nation.

Nigerians should, therefore, be wary of the antics of some elements who are bitter because their evil businesses in the oil and gas sector have been truncated and also those on political vendetta.

Oil saboteurs must not be allowed to have a grip on the sector any longer if Nigeria must rise again as crude oil and gas constitute 70 per cent of Nigeria’s budget revenues and 95 per cent of our foreign exchange earnings.

We all must join hands to make Nigeria great again!

– Akpovire, a journalist, writes from Lagos, Nigeria.