Nigeria Oil Company Records 80% Increase In Trading Surplus

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The Nigerian National Petroleum Corporation (NNPC) has recorded an increase of 80.12% in trading surplus in a month. This increase was recorded between the month of December 2020 and November 2020 which stood at 63,532,499.89 USD and 35,272,487.54 USD surplus respectively.

According to the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru this increase was captured in the month of December 2020 edition of the NNPC Monthly Financial and Operations Report [MFOR]

The trading surplus figure is usually derived after deducting the expenditure profile from the revenue in the period under review. It is also known as the trading deficit.

The report also shows an increment of the operating revenue of the NNPC Group in December 2020 by 33.44% or 359,816.14USD as compared to November 2020 to stand at 1,435,718,936.08USD

Similarly, expenditure for the month increased by 27.54% or 296,283,642.51USD to stand at 1,372,212,700.14USD

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

According to the report the trading surplus increase recorded of 80.12% is mainly attributed to the significant rise in the profit of NNPC,s flagship Upstream entity, the Nigerian Petroleum Development Company (NPDC) amid improved market fundamentals and strong global demand for crude oil.

Other contributory factors to the robust trading surplus recorded in the month under review 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 month of December last year 2.26 billion litres of white products were sold and distributed by PPMC as compared to 1.72 billion litres in the month of November same year 2020.

This comprised 2.254 billion litres of petrol, translating to 72.72 million litres/day, 11.40 million litres of Automotive Gas Oil (diesel) and 0.48 million litres of kerosene.

The cumulative sale of white products alone for the period of December 2019 to December 2020 stood at 18.456billion litres with petrol accounting for 18.325 billion litres or 99.29%.

In monetary terms, the volume translates to a value of 758,424,141.90USD recorded on the sale of white products by PPMC in the month of December 2020 compared to 593,775,426.82USD sales in November 2020.

Petrol largely contributed to Total revenues generated from the sales of white products for the period December 2019 to December 2020 which stood at 5,822,718,158.40USD, with 99.09% of the total sales translating to a value of 5,770,190,254.40USD

In December 2020, 43 pipeline points were vandalized representing about 18.60% increase from the 35 points recorded in November 2020. Mosimi Area accounted for 56% of the vandalized points while Kaduna Area and Port Harcourt accounted for the remaining 33% and 12% respectively.

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In the Gas Sector, natural gas production in December 2020 stood at 213.34 Billion Cubic Feet (BCF) translating to an average daily production of 6,881.83million standard cubic feet of gas per day (mmscfd).

During the period of review the daily average natural gas supply to power plants increased by 3.52% to 816mmscfd, equivalent to power generation of 3,445MW.

A total of 146.72BCF was commercialized Out of the 208.61BCF of gas supplied in December 2020, consisting of 42.90BCF and 103.82BCF for the domestic and export market respectively.

This translates to a total supply of 1,383.93mmscfd of gas to the domestic market and 3,349.00mmscfd of gas supplied to the export market for the month.

This implies that 70.33% of the average daily gas produced was commercialized while the balance of 29.67% was re-injected, used as upstream fuel gas or flared. Gas flare rate was 6.80% for the month under review (i.e. 457.25 mmscfd) compared to average gas flare rate of 7.15% (i.e. 538.59 mmscfd) for the period December 2019 to December 2020.

The 65th edition of the NNPC, MFOR highlights the Corporation’s activities for the period of December 2019 to December 2020.

In line with the Corporation’s commitment of becoming more accountable and transparent, the Corporation has continued to sustain effective communication with stakeholders through the MFOR which is published on Corporation’s website, national dailies, as well as independent online news portals.

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