NNPC’s UK subsidiary grows PAT by 251% to £53,725

Ike Amos

Dublin, Ireland — NNPC Trading Services (UK) Limited, the United Kingdom subsidiary of the Nigerian National Petroleum Corporation, announced a profit after tax of £53,725 for its 2022 financial year, rising by 251.14 per cent from after-tax profit of £15,300 recorded in the 2021.

Using current exchange rate of N1881 to a pound sterling as published by the Central Bank of Nigeria (CBN), the profit after tax declared for 2022 was equivalent to N101.057 million, compared with N28.779 million recorded in the preceding year.

In its audited financials for the year ended, December 31, 2022, submitted to the UK authorities, the company announced that its revenue grew by 73.07 per cent from £61,999 in 2021 to £107,303 in 2022, while administrative expenses rose by 152.5 per cent to £108,854, from £43,110 in the previous year.

In addition, the company posted operating profit of £66,335 in 200, compared with 18,889 in 2021; while tax on profit on ordinary activities stood at £12,610 in 2022 from £3,589 in 2021.

The report noted that the company had on November 22, 2022, through a special resolution, changed its name from Duke Oil Services (UK) Limited to NNPC Trading Services (UK) Limited on 22 November 2022.

The company also listed its principal activities in the year under review, as provider of administrative services to NNPC Trading S.A (formerly known as Duke Oil Company Incorporated – DOCI ) – a trading company registered in Panama.

The company’s current assets depreciated by 28.06 per cent, from £2.459 million in 2021 to £1.769 million in 2022; current liabilities also dipped by 60.34 per cent to £489,673 in 2022, from £1.233 million in the previous year; while total assets grew by 4.4 per cent from £1.226 million in 2021 to £1.279 million in 2022.

Giving a breakdown of related party transactions, the company reported that in the financial year under review, it charged service fees of £107,303, (compared with £61,999 in 2021) to NNPC Trading S.A (formerly known as Duke Oil Company Incorporated), while in the same year, amount payable to NNPC Trading S.A stood at £429,662, compared with £2.22 million in 2021.

The company added that as at 31 December 2022 £71,489 (2021: £71,489) remained payable to the Nigerian National Petroleum Company Limited (NNPCL), noting that the NNPC was a related party by virtue of being the ultimate parent undertaking of the company.

Continuing, the company said: “Our ultimate parent undertaking, The Nigerian National Petroleum Company Limited (NNPCL), has confirmed that it is its current intention to support the business financially for the foreseeable future and for no less than 12 months from the date of approval of these financial statements. Therefore, the directors consider it appropriate to prepare the financial statements on a going concern basis.

“Should the financial support mentioned above not be forthcoming, the going concern basis used in preparing the company’s financial statements may be invalid and adjustments would have to be made necessary should this basis not continue to be appropriate.”

NNPC Trading Services (UK) Limited’s directors for the financial year under review, according to the report, are: Mallam Mele Kyari; Mr. Umar Ajiya; Philomena Ikoko; Lawrencia Ndupu, Lawal Sade, who was also listed as the Managing Director; Muhammad Suleiman and Adokiye Tombomieye.