GNPC records $10.6m profit in 2021; a 106.5% improvement from the $163m loss posted in 2020
The Ghana National Petroleum Corporation (GNPC) has stunned investors with an impressive financial performance in 2021, as it recorded a noteworthy profit of $10.681 million. This significant achievement marks a staggering 106.5% improvement compared to the previous year’s loss of $163.391 million.
According to the esteemed 2022 Auditor General Report, GNPC experienced a commendable upswing in its total income, witnessing a remarkable 23.5% increase from $781.105 million in 2020 to an impressive $964.738 million in 2021.
The corporation’s revenue showed robust growth, with a substantial 23.6% surge from $758.537 million in 2020 to a noteworthy $937.689 million in 2021. This remarkable increase in revenue was primarily propelled by an exceptional 47.5% surge, equivalent to $94.286 million, in the net share of gas sales.
Despite a marginal 1.0% rise in total expenditure, reaching $954.057 million in 2021 from $944.497 million in 2020, the corporation managed to contain costs effectively. The increase in total expenditure was primarily due to a 5.9% rise in cost of sales, which reached $800.853 million in 2021.
The balance sheet also paints a promising picture, showcasing the corporation’s sound financial management. Non-Current Assets registered a commendable 1.4% growth, totaling $1.139 billion in 2021, compared to $1.123 billion in 2020. Notably, this increase was mainly attributable to a substantial $165.594 million boost in investment in subsidiaries, specifically Jubilee Oil Holding Company Limited.
Current Assets exhibited an impressive surge, soaring by an astounding 39.4% to $1.152 billion in 2021 from $826.830 million in the previous year. The driving force behind this growth was a remarkable 152.1% increase, equivalent to $567.622 million, in prepayments.
On the liability front, Current Liabilities experienced a notable decline of 43.4% from $941.315 million in 2020 to $533.057 million in 2021. This impressive decrease was primarily attributed to a significant $341.449 million, or 54.8%, reduction in trade and other creditors.
The current ratio, a key indicator of short-term financial health, surged from 0.9:1 to 2.2:1 in 2021. This remarkable increase underscores GNPC’s ability to fulfill its short-term obligations promptly and efficiently.
The Ghana National Petroleum Corporation’s transformational performance in 2021 has not only cemented its position as a key player in the energy sector but has also reinvigorated investor confidence. As the corporation continues to navigate the dynamic energy landscape, its impressive financial results stand as a testament to its resilience and strategic prowess.
