NNPC Subsidiary, PPMC Grows Profit By N12bn

One of the subsidiaries of the Nigerian National Petroleum Company Ltd, the Petroleum Products Marketing Company has posted a profit of N12.95bn in the 2021 financial period.

The profit of the company represented a 260 per cent increase over its net profit of N3.59bn in 2020.

The Alternate Chairman of PPMC Board of Directors and Chief Financial Officer (CFO) of NNPC Ltd, Mr Umar Ajiya, disclosed this during the company’s 32nd Annual General Meeting which was held in Abuja.

Ajiya said that the rise in profit was due to the adoption of a commercial mindset in the company’s operation, adding that this was required for survival in today’s business environment.

He disclosed that the company also achieved 85 per cent reduction in demurrage cost from $64.9m in 2020 to $9.46m in 2021 due to effective vessels/cargo programming and increased Premium Motor Spirit demand.

He noted that the figure surpassed the target of 50 per cent demurrage cost reduction that had been set for the year.

Ajiya listed some of the company’s achievements for the 2021 financial year to include sustenance of products supply sufficiency, zero fuel queues throughout the year with peaceful industrial harmony, and automation of business processes.

On the outlook for the future, the CFO said that the PPMC was looking at expanding its products portfolio.

The PPMC was set up with the objective to provide excellent customer services by transporting crude oil to the refineries and moving white petroleum products to the existing and future markets efficiently and at low cost through a safe and well-maintained network of pipelines and depots.

It is also part of the objectives of the company to profitably and efficiently market refined petroleum products in the domestic as well as export markets especially in the ECOWAS sub-region, provide marine services and also maintain uninterrupted movement of refined petroleum products from the local refineries.