NNPC Retail Limited has announced a loss of N395.5 billion for 2024 financial year.
Gatekeepers News reports that the company reported a deficit in its annual report and consolidated financial statements for the year ending December 31, 2024.
The record showed that the loss was in contrast to a profit of N20.18 billion posted in 2023. As of December 31, 2024, the company’s financial statement placed it in a net liability position of N278.8 billion, a sharp rise from N79.51 billion in 2023.
NNPC Retail also had net current liabilities of N423.6 billion compared to net current assets of N29.62 billion recorded in 2023.
The report further included financial details of NNPC Retail and its subsidiaries, Apapa SPM Limited and NNPC Retail Limited Togo S.A, collectively referred to as the group.
For 2024, the group posted a loss after tax of N391.1 billion, reversing the N20.08 billion profit recorded in 2023. The financials also showed that by the end of 2024, the group was in a net liability position of N269.7 billion, compared to net assets of N82.25 billion in 2023, with net current liabilities standing at N434.1 billion, against net current assets of N28.96 billion in the previous year.
The directors of the group explained that the massive losses were due to non-recurring transactions. They noted that the decline was mainly driven by an impairment of receivables worth N117 billion and reconciliation differences on intercompany ledger balances amounting to N133.9 billion, which were expensed in the current year. They added that these items are not expected to occur again in subsequent periods.
The report also stressed that the group has historically operated profitably, both under the defunct NNPC Retail Limited and the rebranded NNPC Retail Limited (formerly OVH Energy Marketing Limited).
According to the directors, profitability is expected to return in the foreseeable future, supported by the group’s strong market presence in sourcing, distributing, retailing, and marketing petroleum products in Nigeria.
They further revealed that a large portion of the group’s liabilities, about 38 percent of the total, came from balances with related parties, amounting to N526.6 billion.
Excluding these balances, the group would have maintained a positive net current asset position. The related parties are under the common control of NNPC Limited, which has confirmed that it will continue to provide financial support for at least the next 12 months.
In 2022, NNPC completed the acquisition of OVH Energy in what it described as a strategic decision to expand its downstream operations and attract more investments into Nigeria’s oil sector.
By August 2024, the national assembly called for a forensic probe into alleged irregularities and corruption tied to the deal. A year later, a federal capital territory (FCT) high court approved a suit seeking the recovery of more than N140 billion allegedly linked to the OVH acquisition.
