GNPC: Direct cost up by 78.57% in 2020

Ghana National Petroleum Corporation’s (GNPC) direct costs recorded a significant increase of 78.57% in 2020.

Direct cost rose to GH¢4.2bn

Direct cost rose from GH¢2.4 billion (GH¢2,404.68 million) in 2019 to GH¢4.2 billion (GH¢4,294.19 million) in 2020.

Limited ability to meet short-term obligations

GNPC’s current ratios for both 2019 and 2020 stood at 0.80, implying a limited ability of the Corporation to meet its short-term obligations when they fall due.

2020 State Ownership report

This is contained in the 2020 State Ownership report which shines the spotlight on the performance of entities in which the state has an interest, collectively referred to as specified entities (SEs).

SOEs, JVCs, OSEs, regulatory bodies and public corporations

These entities comprise state-owned enterprises (SOEs), joint venture companies (JVCs) and other state entities (OSEs) such as regulatory bodies and public corporations.

GH¢2.49m free cash flow

The report said free cash flow position of GNPC increased from negative GH¢5.83 million in 2019 to GH¢2.49 million in 2020.

Debt-to-equity

The report showed that debt-to-equity was 3.33 while debt-to-assets ratio was 0.33 for 2020.

GH¢3.5bn revenue in 2020

According to the report, GNPC reported a revenue of GH¢3.5 billion (GH¢3,562.78 million) for 2020, an increase of 1.53% compared to revenue of GH¢3.5 billion (GH¢3,509.08 million) in 2019.

Total revenue up by 49% per annum between 2016-2020

Per the report, GNPC’s total revenue increased by an average of 49% per annum between 2016 and 2020.

7.65% increase in revenue from operations

It showed that revenue from operations increased by 7.65% from GH¢3.2 billion (GH¢3,288.33 million) in 2019 to GH¢3.5 billion (GH¢3,539.97 million) in 2020.

GH¢179.63m spent on corporate social responsibility

Approximately GH¢179.63 million was spent on corporate social responsibility (CSR) activities in the areas of education and training, environment and social amenities, economic empowerment, sports, scholarships and sponsorships.

Financing of 3 artificial turfs

From the report, CSR programmes for the year included construction of three artificial turfs, which were donated towards construction of a sports complex at Hohoe, and two AstroTurfs at Bantama and Beposo.

3 school blocks, lecture hall and administration block

GNPC also completed two six-unit classroom blocks at Kpando, three-unit classroom blocks at Akwanserem and Nkonsa in the Adansi Asokwa District and a lecture hall and administration block at the Bibiani College of Nursing and many others.

11 sanitary facilities with water system

Eleven sanitary facilities with water system were completed while it awarded foreign scholarships to 65 applicants for the 2020/2021 academic year.

 1,264 million barrels of oil equivalent

GNPC achieved 1.2 million (1,264) million barrels of oil equivalent (MMboe) of reserves which was approximately 0.56% above the target 1,257 MMboe set for 2020.

182,860 barrels per day

The Corporation produced an average daily crude oil of 182,860 barrels, 2.27% above the average daily oil target 178,800 barrels.

241.85 million standard cubic feet per day

GNPC exported an average daily gas of 241.85 million standard cubic feet per day (MMScf/d) which was 1.29% below the average daily gas.

Wells drilled

The Corporation drilled two development wells and completed one well while exploratory drilling was deferred and three completion wells did not happen due to the impact of COVID-19 pandemic.

Overall, GNPC delivered slightly above a standard performance index of 3.06 for the 2020 financial year based on a five-point scoring scale.

GNPC scored on average 0.46 under the financial/economic dimension. Weighted score for the dynamic efficiency dimension was 1.00.

Dynamic efficiency measures the extent to which GNPC is investing in actions which ensure its long-term viability. GNPC achieved a 1.60 average weighted score for management improvements and project implementation dimension.

This reflects GNPC’s efficiency in project implementation and efforts towards good corporate governance practices.

GNPC is the national oil company. The company’s mandate is to undertake the exploration, development, production and disposal of Ghana’s hydrocarbon resources.

GNPC serves as the national gas sector aggregator as well as the partner by virtue of being the vehicle for the state’s 10 per cent carried and participatory interest in all petroleum agreements in Ghana