NNPC Records N2.68bn Trading Surplus In May

…Says Oil Pipeline Vandalism Drops By 43%

The Nigerian National Petroleum Corporation operating revenue for the Month of May rose by 15.33 or cent or N31.68bn to N238.33bn.

The Corporation stated this in its Monthly Financial and Operations Report.

The NNPC stated that compared to the month of April, it’s expenditure for the month decreased by 0.76 per cent or N1.81bn to N235.66bn.

The May 2020 report indicated a trading surplus of ₦2.68bn compared to the ₦30.81bn deficit posted in April 2020 when the effect of COVID-19 was at the peak, leading to reduced demand with fluctuating prices.

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

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

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

The Report stated that Oil pipeline vandalism by suspected oil thieves in Nigeria dropped by 43 per cent in May.

The Monthly Report indicated that 37 pipeline points were vandalized representing about 43 per cent decrease from the 65 points recorded in April 2020.

A further breakdown 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.

Suleja-Kaduna logged 16 per cent of the breaks, while other locations make up for the remaining 27 per cent

NNPC stated in the May report that in collaboration with the local communities and other stakeholders, it would continuously strive to bring the malaise under control.

The May MFOR noted that the corporation had continued to monitor the daily stock of Premium Motor Spirit to achieve smooth distribution of the products and ensure zero fuel queue across the nation.

It stated that towards this end, 950.67 million litres of white products were sold and distributed by the corporation’s Downstream subsidiary, the Petroleum Products Marketing Company in May this year.

White product include benzene, kerosene, and gasoline.

The Report stated that total sale of white products for the period May 2019 to May 2020 stood at 19,865.80 million litres while PMS accounted for 19,704.49 million litres or 99.19 per cent.

The report stated that ₦92.58bn was made on the sale of white products by PPMC in May 2020.

Total revenue generated from the sales of white products for the period May 2019 to May 2020 stood at ₦2.39trn, out of which PMS contributed about 98.84 per cent of the total sales with a value of ₦2.36trn

In the gas sector, natural gas production in May 2020 increased by 2.38 per cent at 226.51 billion Cubic Feet compared to output in April 2020.

This translates to an average daily production of 7.48 billiobn Standard Cubic Feet of gas per day.

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