NNPC records N2.2 trillion from petrol sales in one year

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Nigerian National Petroleum Corporation (NNPC)

The Nigerian National Petroleum Corporation (NNPC) on Thursday said it generated a total of N2.197trillion from the sale of petrol between December 2019 to December 2020.

In the period under review, the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, who broke the news in a press statement, said the corporation raked in a total of N2.217 trillion from the total sales of white products.

The statement that was on the December 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR), said

“Total revenues generated from the sales of white products for the period December 2019 to December 2020 stood at ?2.217triilion, where petrol contributed about 99.09 percent of the total sales with a value of ?2.197trillion”.

According to Obateru, NNPC announced an increase of 80.12 per cent in trading surplus for the month of December 2020 which stands at ?24.19billion compared to the ?13.43billion surplus recorded in November 2020.

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

According to the report, the operating revenue of the NNPC Group in December 2020 as compared to November 2020 increased by 33.44 per cent or N137.00billion to stand at N546.65billion. Similarly, expenditure for the month increased by 27.54 per cent or N112.81billion to stand at N522.47billion.

The statement noted that the December 2020, expenditure as a proportion of revenue is 0.96 per cent as against 0.97 per cent in November 2020.

The report indicated that the 80.12 per cent increase is due mainly 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 Downstream, 2.26billion litres of white products were sold and distributed by PPMC in the month of December 2020 compared to 1.72billion litres in the month of November 2020.

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

On the sale of white products, NNPC said “Total sale of white products for the period of December 2019 to December 2020 stood at 18.456billion litres and petrol accounted for 18.325billion litres or 99.29 per cent.

“In monetary terms, the volume translates to a value of ?288.77billion recorded on the sale of white products by PPMC in the month of December 2020 compared to ?226.08 billion sales in November 2020”.

In December 2020, according to the statement, 43 pipeline points were vandalized representing about 18.60 per cent increase from the 35 points recorded in November 2020.

NNPC said Mosimi Area accounted for 56 per cent of the vandalized points while Kaduna Area and Port Harcourt accounted for the remaining 33 per cent and 12 per cent respectively.

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

The statement reads in parts; “The daily average natural gas supply to power plants increased by 3.52 per cent to 816mmscfd, equivalent to power generation of 3,445MW.

“Out of the 208.61BCF of gas supplied in December 2020, a total of 146.72BCF was commercialized; 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 per cent of the average daily gas produced was commercialized while the balance of 29.67 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 6.80 per cent for the month under review (i.e. 457.25 mmscfd) compared to average gas flare rate of 7.15 percent (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”.