News - Oil & Gas - December 13, 2021

After a deficit, NNPC reports ₦135.3 bn trading surplus in June

By Bassey Udo

After a ₦37.46 billion deficit previously in May 2021, the Nigerian National Petroleum Company (NNPC) Limited has reported a quantum leap in trading surplus of about ₦135.25 billion from its operational activities for June 2021.

This is contained in the June 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR) released on Sunday in Abuja.

The latest publication, which is the 71st edition of the MFOR, highlights NNPC’s activities for the period of June 2020 to June 2021.

The Group General Manager,
Group Public Affairs Division
NNPC, Garba Deen Muhammad, said the publication is in line with company’s commitment to transparency and accountability.

He said it is also to sustain the company’s effective communication with stakeholders through publications on its website, independent online news portals and in national dailies.

A trading surplus or trading deficit is the result after deducting the company’s expenditure profile from its operations revenue for the period under review.

In June 2021, NNPC Group total operating revenue stood at about N894.64 billion compared with its expenditure figure for the month of about N721.93 billion.

The implication is that the company earned a trade surplus of about N172.71 billion, or about N135.25 billion increase, when compared with the deficit trading figure of N37.46 billion recorded in the preceding month of May 2021 (about 461.01 percent increase).

The report attributed the increase in company’s trading surplus mainly to the increase in sales volume of crude oil and gas by its upstream industry subsidiary, the Nigerian Petroleum Development Company (NPDC), and the increased gas sales and depreciation postings by another of its subsidiaries, the Nigerian Gas Company (NGC).

The positive outlook, the report added, was further bolstered by the performance of two other of the company’s trading arms, the Duke Oil, which handles the trading of Nigeria’s crude oil in the international market, and the Nigerian Gas Marketing Company (NGMC), the subsidiary in charge of marketing of gas.

To ensure continuous supply and effective distribution of Premium Motor Spirit (PMS), popularly called petrol across the country, the report said a total of 1.63bilion litres of the commodity, translating to about 54.50million litres per day, were supplied in June 2021.

Also, the report said during the month about 47 pipeline points were vandalized, representing about 26.56 percent decrease from about 64 points recorded in May 2021.

Details of the vandalized poinys showed that the Kaduna Area recorded the highest incidence (about 51 percent), followed by Port Harcourt Area, which accounted for about 43 percent of the total figure, while Mosimi recorded about 6 percent.

In the gas sector, a total of 223.77 billion cubic feet (bcf) of natural gas was produced in the month of June 2021, translating to an average daily production of 7,459.88 million standard cubic feet per day (mmscfd).

Besides, a total of 2,890.11 billion cubic feet of gas was produced during the month, representing an average daily production of 7,321.36 million scfd during the period.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 59.84 percent, 20.26 percent and 19.90 percent respectively to the total national gas production.

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