Market Report: NNPC to Declare Dividends for the First Time in 44 Years

Oil platform on the ocean. Offshore drilling for gas and petroleum or crude oil. Industrial 3D render

NIGERIA

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Alhaji Mele Kyari disclosed that the Corporation would declare dividends for the first time in its 44 year history. Alhaji Kyari mentioned this while speaking at the 2021 edition of the Nigeria Annual International Conference and Exhibition organized by the Society of Petroleum Engineers. Alhaji stated that NNPC 2020 financial statements would be made available in the third quarter of 2021 for the first time in the corporation’s history, and dividends will be declared, as it is poised to make a profit. This is the third year running that NNPC disclosed its financials to the public in line with the Transparency, Accountability and Performance Excellence policy followed throughout Kyari’s successful tenure as the Group Managing Director of the NNPC.

The Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva, said that the Federal Government of Nigeria had approved the NNPC purchase of a 20% stake in the 650,000-barrel-per-day Dangote oil refinery for the sum of $2.76 billion. Minister Sylva disclosed that the Government approved the National oil companies’ acquisition of the stake during a cabinet meeting. Furthermore, he added that the cabinet meeting approved two state-owned refineries- the Warri and Kaduna refineries to be upgraded and modernized.

The NNPC reported in June that it had signed term sheets with the Dangote Group for the proposed acquisition of a 20% stake but noted that it would require the government’s approval of the plan. Based on this disclosure from the Minister, NNPC is set to have its approval and will move forward with obtaining the financing needed to fund the planned acquisition.

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Source: EnergyCapitalPower

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