The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of N43.57 billion in April 2021, representing a 23.64 percent increase over the N35.24 billion it recorded in the preceding month.
The corporation’s just published April 2021 edition of Monthly Financial and Operations Report (MFOR) indicated that its Group operating revenue in the month under review rose to N535.61bn, representing around N80.67bn or 17.73 percent higher than the group’s gross revenue in March 2021.
The report further showed that the group’s expenditure in April increased by 17.24% or N72.34bn to peak at N492.05bn, while expenditure as a proportion of revenue stood at 0.92, same as the preceding month’s figures.
The report attributed the increase in trading surplus to the activities of the corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), from crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as increase in gas sales.
A statement by the Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru, on the report reflected that the corporation’s positive outlook was further consolidated by the gains of two other subsidiaries, namely Duke Oil and the National Engineering and Technical Company (NETCO).
According to the report, to ensure uninterrupted supply and effective distribution of fuel across the country, the corporation supplied a total of 1.67billion litres of Premium Motor Spirit (PMS) translating to 55.79mn litres per day in the month under review.
The report also indicated that vandalized pipelines dropped by 34.29 percent in April to 46 as against the 70 points vandalized in the previous month.
A further analysis of the MFOR reflected that in the gas sector, a total of 209.27billion 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).
From April 2020 to April 2021, the corporation reported that 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%, 19.95% and 17.98% respectively to the total national gas production.
Also, in terms of natural gas off-take, commercialization and utilization, out of the 206.40bcf supplied in April 2021, a total of 126.83bcf of gas was commercialized 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.
The figures implied that 61.45% of the average daily gas produced was commercialized while the balance of 38.55% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74% for the month under review (i.e. 670.19mmscfd) compared with average gas flare rate of 7.42% (i.e. 542.22mmscfd) for the period of April 2020 to April 2021.
Trading surplus or trading deficit is derived after deduction of the expenditure from the accrued revenue for the period under review.
NNPC started publishing its Monthly Financial and Operation Report in October 2015, making the April 2021 edition the 69th in the series.
