Nigerian Gas Company Ltd (NGC), a subsidiary of NNPC Group reported revenue of N139.2 billion for the year ended December 2021 representing a 28% growth from the N109 billion reported a year earlier.
This was disclosed in the company’s 2021 full-year annual audited reports published on the website of the NNPC.
The Company is involved in the transportation of Natural Gas and the delivery to major industrial users and utility distribution companies in Nigeria.
Some of NGC’s customers include power generating companies such as those supplying to the national grid, embedded power generators, captive power, etc.
The company’s impressive revenue gain appears to have helped push salaries paid to employees from N5.4 billion to N17.6 billion up 225%. Total salaries for the period rose to N48.2 billion in 2021 from N31.8 billion same period in 2020.
Dissecting the result
Revenue: The company operates just one major segment, gas transportation, and earned a total of N139.2 billion from the segment during the year. Other income earned the company N8.9 billion down from N35 billion a year earlier. The major reason for the drop is its income from foreign exchange gain which went from N31.3 billion to N8.8 billion.
Cost of Sale: NGC reported a higher cost of sale during the year, reporting N11.4 billion as against N9.6 billion. The cost of sale includes the other direct expenses are; depreciation of pipelines, material shortage, generator maintenance, and safety consumables.
Operating Cost – Largely driven by an increase in salaries and emoluments, the company reported total operating expenses of N75 billion compared to N54 billion same period last year.
Salaries and emoluments made up about 57% of the company’s value-added as the company increased the total amount paid to its employees during the year.
In fact, “management monetized benefits” rose from N941 million to N1.7 billion during the year while employee benefit plans also increased from N3.1 billion to N6.4 billion.
NGC has about 295 employees out of which 240 are senior staff and 33 are management staff and 22 are Junior staff.
Profits – At the end of the year, the company reported a profit after tax of N36.9 billion compared to N58.9 billion a year earlier.
Other matters – The company reported that it deposited N67.6 billion which represents NGC’s 50% Share Subscription for Equity Funding Contribution in ANOH Gas Processing Company Limited. the total equity for the development of ANOH Gas Processing Company is $420,000,000, to be shared in equal basis between NGC and Seplat. The Shares Subscription Agreement is between NNPC(NGC) and.
Seplat Plc on 50:50 basis for the development of ANOH Gas Processing Company Ltd. The amount in Deposit for investment represents NGC share of $210,000,000. The company has not started operations.
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