BREAKING: After Posting N6.8tn Profit In Four Years, NNPC Ltd Reveals Readiness For Initial Public Offer
After four consecutive years of profitability under the leadership of the Group Chief Executive Officer, Mele Kyari, the Nigerian National Petroleum Company Limited (NNPC Ltd) on Thursday said it is at the final stage of getting listed in the capital market.
The move is in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The company’s Chief Finance and Investor Relations Officer (CFIO), Mr. Olugbenga Oluwaniyi, revealed this at a consultative meeting with partners at the NNPC Towers, Abuja.
He said NNPC Ltd. was currently engaging with prospective partners in an exercise tagged “NNPC Ltd. IPO Beauty Parade” in line with capital market regulations before the commencement of the Initial Public Offer (IPO).
According to the CFIO, the aim of the ‘IPO Beauty Parade’ is to access potential partners and determine in what ways they could be of support to the company.
He listed the areas of partnership required to include investor relations, IPO readiness advisers, and investment bank partners.
He said the company with the best offer in terms of project partnership would be selected for each of the three categories.
An IPO is a public offering in which shares of a company are sold to institutional investors. The PIA provides for NNPC Ltd. to list its shares in the capital market in line with the provisions of the Companies and Allied Matters Act (CAMA) 1990.
The Nigerian National Petroleum Company Ltd had continued its impressive records of profitability as it posted a profit after tax of N3.3tn in the 2023 financial period.
The N3.3tn represents an increase of N749bn or 28 per cent when compared to the N2.54tn posted in the 2022 financial period.
The company also declared a dividend of N2.1tn to its shareholders.
From a loss position of N1.7bn in 2019, the management of the NNPC has been able to reverse the trend by posting a profit of N287bn in 2020, N674.1bn in 2021, and N2.54tn in 2022 before hitting the current figure of N3.29tn in 2023.
This means that within the last four years, the NNPC Ltd., under the leadership of the Group Chief Executive Officer, Mele Kyari, has made N6.8tn in profit.
Gross revenue during the period was N23.99bn, while total assets were N246.8 trn during the period.
Despite mounting operational and economic challenges, NNPC Ltd., since becoming a CAMA company, has shown that it is ready to compete among its peers globally.
Experts have said that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act 2021, and by extension, as expected by the company’s shareholders.
