NNPC Moves From N37.46bn Trading Deficit To N142bn Surplus

The Nigerian National Petroleum Company (NNPC) Limited has announced a huge leap in trading surplus of N141.96bn recorded in June 2021 compared to a deficit of N37.46bn in May 2021.

This is contained in the June 2021 figures of the NNPC Monthly Financial and Operations Report (MFOR).

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

In June this year, NNPC Group operating revenue as compared to May 2021, decreased by 9.07 per cent or N89.27bn to stand at N894.64bn.

Similarly, expenditure for the month decreased by 29.32 per cent or N299.44bn to stand at N721.93bn.

Thus, in the period under review, expenditure as a proportion of revenue was 0.81 per cent, compared to the figure in May which stood at 1.04 per cent.

The report, according to a statement from Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of the NNPC noted that the increase in trading surplus was due mainly to the increased sales of crude oil and gas by the Nigerian Petroleum Development Company (NPDC), an Upstream subsidiary of the NNPC.

The increase was also as a result of a rise in gas sales and depreciation postings by the Nigerian Gas Company (NGC).

“The positive outlook was further bolstered by the performance of Duke Oil and the Nigerian Gas Marketing Company (NGMC) which also added to the improved bottom line.

“Trading surplus or trading deficit is derived after deduction of the expenditure
profile from the revenue for the period under review,” the statement added.

To ensure continuous supply and effective distribution of Premium Motor Spirit (PMS) across the country, a total of 1.63bn litres of PMS translating to 54.50mn liters/day were supplied in June 2021.

The report indicated that in June this year, 47 pipeline points were vandalized representing 26.56 per cent decrease from the 64 points recorded in May this year.

It added that Port Harcourt Area accounted for 43 per cent, while Mosimi and Kaduna Areas accounted for 51 per cent and six per cent respectively of the vandalized points.

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

For the period of June 2020 to June 2021, a total of 2,890.11bcf of gas was produced representing an average daily production of 7,321.36mmscfd during the period.

In line with its commitment to transparency and accountability, NNPC has continued to sustain effective communication with stakeholders through this report via publications on its website, independent online news portals and in national dailies.