Ajiya: 2023 performance function of revenue growth, cost optimisation
The Chief Financial Officer of the Nigerian National Petroleum Company Limited, Umar Ajiya says the company’s 2023 performance which recorded a net profit of 3.3 trillion naira is as a result of revenue growth, cost optimization and a shift from the Treasury Single Account regime. In a chat with CNBC Africa, he notes the plan is to sweat some assets while highlighting shareholders are not averse to selling down.
Mon, 26 Aug 2024 11:51:07 GMT
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AI Generated Summary
- The NNPCL achieved a net profit of 3.3 trillion naira in 2023 through a combination of revenue growth, cost optimization, and a shift from the Treasury Single Account regime.
- The company is focusing on optimizing its debt and equity structure by sweating assets, bringing in partners, or selling underperforming assets.
- NNPCL is considering an initial public offering (IPO) pending shareholder approval and is committed to transparency, corporate governance, and maximizing returns for shareholders.
The Chief Financial Officer of the Nigerian National Petroleum Company Limited (NNPCL), Umar Ajiya, recently sat down with CNBC Africa to discuss the company's impressive 2023 financial performance and its future plans for growth. Ajiya attributed the company's net profit of 3.3 trillion naira in 2023 to a combination of factors, including revenue growth, cost optimization, and a shift from the Treasury Single Account regime. He emphasized that the company has been on an upward trajectory since 2021 and highlighted the importance of diversifying income streams. Ajiya also addressed concerns about the company's balance sheet, noting that while current liabilities slightly exceed current assets, the company is still able to meet its obligations on time. He mentioned plans to optimize the company's debt and equity structure by either sweating assets, bringing in partners, or selling off assets that cannot be maximized. In terms of future plans, Ajiya mentioned that an initial public offering (IPO) is on the horizon, pending shareholder approval. He expressed confidence in the company's profitability trajectory and shareholder readiness to sell down. Ajiya also discussed the company's commitment to transparency and corporate governance, highlighting the NNPCL's membership in the Extractive Industries Transparency Initiative (EITI) and its investment in automated business processes. He reassured stakeholders that the company has robust governance frameworks in place to ensure accountability and performance evaluation. Finally, Ajiya addressed a proposal to deposit oil sales proceeds directly into an account with the Central Bank of Nigeria, expressing willingness to work with the central bank while acknowledging past challenges with the Treasury Single Account system. Looking ahead to 2024, Ajiya provided a positive forward guidance, anticipating continued growth and improved performance for the NNPCL. He indicated that the company is focused on maximizing returns on its assets and delivering value to shareholders.
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