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NNPC posts N43.57bn trading surplus in April

NGMC empowers 40 rural women in Delta, Edo

The Nigerian National Petroleum Corporation (NNPC) has posted a trading surplus of N43.57 billion in April 2021.

The amount represents a 23.64 percent increase over the N35.24 billion surplus it recorded in the previous month of March 2021.

The figure is contained in the 69th edition of the NNPC Monthly Financial and Operations Report (MFOR) for April 2021, according to a statement by Kennie Obateru, group general manager, group public affairs division of the corporation.

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

According to the report, the NNPC operating revenue in April 2021 compared to March 2021, increased by 17.73 percent or N80.67 billion to stand at N535.61 billion.

Similarly, expenditure for the month increased by 17.24 percent or N72.34 billion to stand at N492.05 billion, while expenditure as a proportion of revenue stood at 0.92, same as last month.

The report linked the rise in trading surplus to the activities of NNPC’s upstream subsidiary – the Nigerian Petroleum Development Company (NPDC), such as crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as an increase in gas sales.

It noted that the positive outlook was further consolidated by the robust gains of two other subsidiaries namely: Duke Oil and the National Engineering and Technical Company (NETCO).

Read also: NNPC records N234.63bn petroleum product sales in March

“In the downstream, to ensure uninterrupted supply and effective distribution of fuel across the country, a total of 1.67 billion litres of Premium Motor Spirit (PMS) translating to 55.79 million litres per day were supplied in the month under review.

“The report further showed a 34.29 percent reduction in the number of pipeline points vandalized from 70 in the previous month of March 2021 to 46 in April 2021. While the Port Harcourt area accounted for 54 percent, Mosimi area accounted for 46 percent of the vandalized points.

“In the gas sector, a total of 209.27 billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 6,975.72million standard cubic feet per day (mmscfd).

“For the period of April 2020 to April 2021, a total of 2,902.52bcf of gas was produced, representing an average daily production of 7,369.76mmscfd during the period.

“Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07 percent, 19.95 percent and 17.98 percent respectively to the total national gas production.

“In terms of natural gas off-take, commercialisation and utilisation, out of the 206.40bcf supplied in April 2021, a total of 126.83bcf of gas was commercialised consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.

“This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94mmscfd of gas supplied to the export market for the month.

“This implies that 61.45 percent of the average daily gas produced was commercialized while the balance of 38.55 percent was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74 percent for the month under review (i.e. 670.19mmscfd) compared with average gas flare rate of 7.42 percent (i.e. 542.22mmscfd) for the period of April 2020 to April 2021.

“A total of 795mmscfd was delivered to gas-fired power plants in the month of April 2021 to generate an average power of about 3,416 MW.”