Abuja — The Nigerian National Petroleum Corporation (NNPC) has disclosed its intention to stop funding the operational activities of one of its subsidiaries, the Integrated Data Services Limited (IDSL), from its corporate headquarters' budget.
NNPC stated that this was necessitated by IDSL's reported impressive financial performances which has seen it grow its annual revenue from N5.5 billion in 2016 to N19.033 billion in 2018.
A statement from the corporation, quoted the Chief Operating Officer (COO), Upstream of the NNPC, Mr. Roland Ewubare, to have made this disclosure at the 23rd Annual General Meeting of IDSL which he also chairs.
The statement was signed by NNPC's acting Group General Manager, Group Public Affairs Division, Mr. Samson Makoji. It explained that IDSL, which was established in 1988 as an upstream company offering services in seismic data acquisition, processing and reservoir engineering as well as data storage and management services has now become financially self-reliant.
It stated that in 2016, the company made N5.5 billion profit from its operations; in 2017 it rose to N7.6 billion; and then N19.033 billion in 2018.
Ewubare, described the performance as very impressive, and said that the subsidiary had become self-reliant and would not require any subvention from the corporate headquarters anymore.
"If anything, IDSL now contributes to the center; we will continue to give them the needed support to ensure that they sustain this growth trajectory," he said.
It equally quoted the Chief Financial Officer (CFO) of the corporation, Mr. Umar Ajiya, to have commended IDSL's management on the performance streak.
Ajiya, in this regards said, "the only way we can grow is when businesses like this deliver positive results, to enable us collectively overcome our financial challenges."
He affirmed that the management of NNPC would give all the necessary supports to all its subsidiaries with capacity and prospect to deliver, including recapitalisation where necessary and helping them to secure profitable business opportunities across the industry value chain.
The statement equally stated that the Managing Director of IDSL, Mr. Diepriye Tariah, attributed the impressive performance of the company to the reorientation of the staff who, he said, had become more commercially focused and efficient.