State oil company, the Nigerian National Petroleum Company Ltd (NNPCL) has reported a record-breaking net profit of N3.3 trillion for the 2023 financial year.

This marks a substantial 27.6% increase from the N2.58 trillion in the corresponding period of 2022.

It also signifies the highest profits ever declared in NNPC Limited’s history, and since it transitioned to a profit-making entity in 2020 after the enactment of the PIA into law.

This achievement was unveiled at the company’s Annual General Meeting (AGM) on Monday, emphasising NNPC Limited’s financial success and strategic growth.

Mele Kyari, NNPC’s GCEO, remarked that 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.

In his comments on the results, Umar Ajiya Isa, Executive Vice President and Chief Financial Officer of NNPCL, emphasized NNPCL’s exceptional performance in the 2023 Financial Year. According to him, NNPC Limited 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 results signify a net profit margin of 14% and an operating profit margin of 18%.

In addition, NNPC Limited’s 2023 financial 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.

The year 2023 also saw NNPC Limited doubling its noncurrent assets, building on a remarkable 141% growth from the previous year. This 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. In its results, NNPCL declared a final dividend of ₦2.101 trillion, following an interim dividend of ₦536.64 billion.

This brought the dividend payout ratio to 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 further 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