Thread by @FinPlanKaluAja1

NNPC 2020 Results: Income Statement

1. Revenues down
2. NNPC Corporation made operational Loss
3. "Profit" is a one-time accounting write back of past impairments.

NNPC 2020 results: Balance Sheet

Current Liabilities exceed Current Assets, translation? NNPC will have difficulties meeting short-term obligations.

Note: the 5-year summary also shows negative current assets

NNPC 2020 results: CashFlow Statement

The Corporation and Group were able to show positive cash due to cash "infusion" from Federal Government.

The cash infusion is more than cash generated from the Operations of the Corporation.

Remember, Cash is King

NNPC 2020 results.

One way to make an Operational "profit" ?.

You can write back bad loans. NNPC is saying the Federation will pay her obligations, thus it posts those obligations previously categorized as "doubtful" as "good" thus it goes straight to income.

To be clear, this is legal and correct. it is an Accounting profit, keyword "Accounting".

The question is should a Corporation that has a negative short-term position can post billions in accounting "profits".

That is above my pay grade.

Among the receivables, which are assets are NAPIMS, essentially, NNPC is saying the Federation owes it. Will the Federation pay?

Then this...

Remember NNPC balance sheet has Cash as an asset, but it's "double counting" cash for TAM of refineries and N662b of NLNG and NPDC cash.

That cash is not owned by NNPC, it is material and should have been excluded.

Again, legal but......

Everything here is legal, but would I buy a stock that holds cash in "trust" and posts negative current assets?

NNPC can build on this result and possibly get a technical partner with cash. They need capital, they have assets.

Godspeed