The Nigerian National Petroleum Corporation (NNPC), on Sunday said its subsidiary- the Nigerian Gas Processing and Transportation Company Limited (NGPTC), formerly Nigerian Gas Company (NGC) suffered N6.79bn or 30.04% decline in net profit for the year ended December 31, 2016.
A statement by Ndu Ughamadu, Group General Manager, Group Public Affairs Division at the corporation said the company’s net profit dropped to N15.81bn from N22.6bn in the corresponding full year of 2015, despite a N64bn or 41.15% growth in sales revenue.
Even then, Ughamadu continued, the 2016 profit was due to the write-back of deferred tax put at N8.05bn in 2015, quoting Engr. Saidu A. Mohammed, Chief Operating Officer of NNPC’s Gas and Power Autonomous Business Unit and Chairman of NGPTC, as saying at its Annual General Meeting in Abuja last week that the net profit translated to Earnings Per Share (EPS) of N3,163; as against prior year’s N4,510.
Continuing, Engr. Saidu said the company’s total revenue from gas sold and transmitted during 2016 amounted to N219.5bn as against N155.5bn in 2015, out of which profit before tax for the year rose 16.8% to N24.4 billion from N20.9 billion in 2015.
Earnings growth, he explained further was due to revenue generated from application of higher transportation tariff and new commercial customers that came on stream.
“An overview of NGPTC’s business performance for the year 2016 shows that 307 billion standard cubic feet (bscf) of gas was sold and transmitted as against the planned 463 bscf, thereby achieving 66.4% of its target. The year 2016 also reveals a performance of 4% below the volume of 319.25 bscf sold in 2015.”
He noted that the Company was confronted with the challenges of incessant vandalism of the Escravos-Lagos Pipeline System 1 (ELPS 1), Trans Forcados pipeline and evacuation bottleneck of condensate in 2016.
Saidu acknowledged the continued support of NGPTC’s host communities for the sustained peace and tranquility in the Company’s areas of operation.
Speaking at the event, Managing Director of NGPTC, Babatunde Bakare, stated that the corporate culture of the Company was hinged on the unwavering commitment to excellence, best ethics and team work.
He applauded stakeholders for their support to the NGPTC, adding that the 22nd AGM financial statement for 2016 would enable the Company to sustain its record of excellent corporate standing.
“Indeed, 2016 was historic given that Nigerian Gas Company (NGC) changed its name to Nigerian Gas Processing and Transportation Company Limited (NGPTC) to better reflect NGPTC’s new business focus and the birth of a new gas marketing company, Nigerian Gas Marketing Company (NGMC),” Bakare stated.