NNPC Records 80.12% Trading Surplus In December 2020

The Nigerian National Petroleum Corporation said it recorded an increase of ₦24.19billion trading surplus in December 2020. The amount is an 80.12 percent increase compared to the ₦13.43billion surplus recorded in November of the same year.

Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.

The Corporation disclosed this in its Monthly Financial and Operation Report (MFOR) for the Month of December 2020, adding that the operating revenue of the NNPC Group in December as compared to November, increased by 33.44 per cent or N137.00billion to stand at N546.65billion.

“Similarly, expenditure for the month increased by 27.54 per cent or N112.81billion to stand at N522.47billion.

“The December 2020 expenditure as a proportion of revenue is 0.96 as against 0.97 in November 2020,’’ it said.

The report also indicated that the 80.12 per cent increase was mainly due to the significant rise in the profit of NNPC’s Upstream entity, the Nigerian Petroleum Development Company (NPDC) amid improved market fundamentals and strong global demand for crude oil.

Other contributory factors include the improved performance by the Nigerian Gas Marketing Company (NGMC), the Petroleum Products Marketing Company (PPMC), the National Engineering and Technical Company (NETCO) and Duke Oil Incorporated which recorded noticeable gains in their operations.

In the Downstream, the report noted that 2.26billion litres of white products were sold and distributed by PPMC in December compared to 1.72billion litres distributed in the month of November.

Breakdown of Report

A breakdown indicated that the products comprised 2.254billion litres of petrol, translating to 72.72million litres/day, 11.40 million litres of Automotive Gas Oil (diesel) and 0.48 million litres of kerosene.

“Total sale of white products for the period of December 2019 to December 2020 stood at 18.456billion litres and petrol accounted for 18.325billion litres or 99.29 per cent.

“In monetary terms, the volume translates to a value of ₦288.77billion recorded on the sale of white products by PPMC in the month of December 2020 compared to ₦226.08 billion sales in November.

“Total revenues generated from the sales of white products for the period December 2019 to December 2020 stood at ₦2.217triilion, where petrol contributed about 99.09per cent of the total sales with a value of ₦2.197trillion,’’ it said

On the oil Pipelines, i 43 pipeline points were vandalised in the month under review, representing about 18.60 per cent increase from the 35 points recorded in November.

“Mosimi Area accounted for 56 per cent of the vandalised points while Kaduna Area and Port Harcourt accounted for the remaining 33per cent and 12 percent respectively,’’ it said.

Also, in the gas sector, it said that natural gas production in December stood at 213.34Billion Cubic Feet (BCF) translating to an average daily production of 6,881.83million standard cubic feet of gas per day (mmscfd).

According to the report, the daily average natural gas supply to power plants increased by 3.52 per cent to 816 mmscfd, equivalent to power generation of 3,445MW.

“Out of the 208.61BCF of gas supplied in December, a total of 146.72BCF was commercialised; consisting of 42.90BCF and 103.82BCF for the domestic and export market respectively,” it said.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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