NNPC records N2.68bn trading surplus, returns to profitability

NNPC records N2.68bn trading surplus, returns to profitability

The Nigerian National Petroleum Corporation, NNPC, has announced a trading surplus of N2.68 billion for the month of May 2020.

This brings the corporation back to profitability, when compared to a deficit of N30.81 billion recorded in April 2020.

In a statement on the release of its May 2020 Monthly Financial and Operations Report, the NNPC also stated that the country earned N92.58 billion from the sale of white petroleum products in the month under review, comprising premium motor spirit, PMS, also known as petrol; kerosene and diesel.

As a result, Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, said its operating revenue appreciated by 15.33 per cent or N31.68 billion to N238.33 billion, compared to N206.65 billion recorded in April 2020.

Accordingly, he added that the NNPC’s expenditure decreased by 0.76 per cent or N1.81 billion to stand at N235.66 billion in May, from N233.85 billion recorded in April.

He said, “The May 2020 report indicated a trading surplus of N2.68 billion compared to the N30.81 billion deficit posted in April 2020 when the effect of COVID-19 was at the peak, leading to reduced demand with fluctuating prices.

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“The NNPC report said the 109 per cent upturn this month is the cumulative result of improved performances by some of the corporation’s Strategic Business Units.

“While the Nigerian Petroleum Development Company (NPDC) posted a surplus due to substantial growth in the market fundamentals as demand began a slight recovery; the Nigerian Gas Marketing Company (NGMC) recorded 257 per cent increased profit attributed to improved debt collection.

“Similarly, Petroleum Products Marketing Company’s, PPMC, surplus rose 250 per cent from investment dividend received and significant drop in average product landing cost.

“In addition, Corporate Headquarters deficit ebbed by 47 per cent in May, according to the report, compared to last month’s, while NNPC Retail, Integrated Data Services Limited (IDSL), NNPC Shipping and Ventures also contributed positively to the month’s performance, leading to the significant NNPC Group surplus position during the period under review.”

Obateru further stated that total white petroleum products sold by the PPMC in May 2020, stood at N92.58 billion.

In addition, he disclosed that total revenue generated from the sales of white products for the period May 2019 to May 2020, stood at N2.394 trillion, where PMS contributed about 98.84 per cent of the total sales with a value of N2.366 trillion.

According to him, the NNPC had continued to diligently monitor the daily stock of Premium Motor Spirit (PMS), otherwise called petrol, to achieve smooth distribution of the products, and also to ensure zero fuel queue across the nation.

He said, “Towards this end, 950.67 million litres of white products were sold and distributed by the corporation’s downstream subsidiary, the PPMC, in May 2020. This comprised 950.67 million litres of PMS only with no Automotive Gas Oil, AGO, or Dual Purpose Kerosene, DPK, adding that there was no sale of special product in the month.

“Total sale of white products for the period May 2019 to May 2020 stood at 19.865 billion litres and PMS accounted for 19.704 billion litres or 99.19 per cent.”

Obateru said the NNPC recorded an encouraging 43 per cent drop in cases of willful damage of its oil pipeline infrastructure by suspected oil thieves in May 2020.

He explained that 37 pipeline points were vandalized representing about 43 per cent decrease from the 65 points recorded in April 2020.

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A further breakdown, according to him, showed that Mosimi-Ibadan pipeline axis accounted for 38 per cent of the vandalized points while Atlas Cove—Mosimi axis recorded 19 per cent of the breaks.

 

In addition, he stated that Suleja-Kaduna logged 16 per cent of the breaks, while other locations made up for the remaining 27 per cent.

 

He added that the NNPC in collaboration with the local communities and other stakeholders, would continuously strive to bring the malaise under control.

 

In the gas sector, Obateru noted that natural gas production in May 2020 increased by 2.38 per cent at 226.51billion cubic feet, BCF, compared to output in April 2020; translating to an average daily production of 7,480.36million Standard Cubic Feet of gas per day (mmscfd).

 

“Likewise, the daily average natural gas supply to gas power plants increased by 5.87 per cent to 834 mmscfd, equivalent to power generation of 3,128 MW,” he added.

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