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NNPC Post N39.85bn Trading Surplus in February

Ebuka Daniel

The Nigerian National Petroleum Corporation (NNPC) has announced a N39.85bn trading surplus for the month of February 2021.

The surplus, according to the latest edition of the NNPC Monthly Financial and Operations Report, represents a 314.24 per cent increase from the ₦9.62bn surplus recorded in January 2021.

The report shows that the Corporation’s operating revenue stood at N578.79bn compared to N152.07bn in January 2021.

Similarly, expenditure for the month increased by 29.21 percent or N121.83bn to stand at N538.94bn.

It added, “The expenditure for the month as a proportion of revenue was 0.93 per cent as against 0.98 percent the previous month.

“The significant increase in trading surplus is attributed mainly to reconciled accounts by the Corporation’s downstream subsidiary, the Petroleum Products Marketing Company (PPMC), using the Petroleum Products Pricing Regulatory Agency (PPPRA) pricing template.

“Other factors that boosted the trading surplus figure, according to the Corporation, included the performance of Duke Oil, Nigerian Gas Company (NGC) and Nigerian Gas Marketing Company (NGMC) which recorded robust gains as a result of increased debt collection and cost optimization measures.”

Conversely, during the period under review, 54 pipeline points were vandalized representing 50 percent increase from the 27 points recorded in January 2021.

According to the report, the Warri Area accounted for 50 per cent and Mosimi Area accounted for 39 percent of the vandalized points while Kaduna and Port Harcourt Areas accounted for 7 percent and 4percent respectively.

“NNPC continues to work in collaboration with the local communities and other stakeholders to eliminate the menace of pipeline vandalism,” it said.

The Corporation according to the report, supplied a total of 1.41bn litres of Premium Motor Spirit (petrol) translating to 50.52m litres/day in the period.

In terms of natural gas offtake, commercialization and utilization, out of the 206.05 Billion Cubic Feet (BCF) produced in February 2021, a total of 133.06BCF was commercialized consisting of 40.15 BCF and 92.91 BCF for the domestic and export market respectively.

This translates to a total supply of 1,433.75Million Standard Cubic Feet Per Day (mmscfd) of gas to the domestic market and 3,318.25mmscfd of gas supplied to the export market for the month.

“This implies that 64.48 percent of the average daily gas produced was commercialized while the balance of 35.52 percent was re-injected, used as upstream fuel gas or flared.

“Gas flare rate was 7.67 percent for the month under review (i.e. 565.52mmscfd) compared with average gas flare rate of 7.12 percent (i.e. 529.20mmscfd) for the period of February 2020 to February 2021,” it stated.

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