NNPC’s trading surplus declines 70% to N3.95bn in one month

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Abuja — A significant decline was recorded in the bottom line figures of the Nigerian National Petroleum Corporation, NNPC, in November 2019, as it posted trading surplus of N3.95 billion, dropping by 70.14 per cent from a surplus of N13.23 billion recorded in the previous month.

The NNPC, according to its Monthly Financial and Operations Report for November 2019, blamed the dip in its trading surplus on the increasing expenditure profile of the corporate headquarters, the country’s moribund refineries and unimpressive financial performance of the corporation’s downstream subsidiaries.

Specifically, the NNPC announced group operating revenue of N330.80 billion, dropping by 16 per cent or N61 billion from N391.8 billion recorded in October 2019; expenditure depreciated by 14 per cent to N326.85 billion, from N378.573 billion in October; while it declared trading surplus of N3.95 billion in November 2019, compared to N13.23 billion recorded in the preceding month.

“The 70 per cent decline for the month is due largely to increased deficit posted by the refineries, corporate headquarters and the downstream sector, particularly; NNPC Retail. However these weak performances were dominated by the surplus posted in the upstream sector to arrive at a net group surplus,” the NNPC noted.

The corporation further stated that in November 2019, total crude oil production in Nigeria further increased by 1.58 million barrels or 2.55 per cent to average 63.68 million barrels with daily average of 2.05 million barrels per day.

It said, “Production was disrupted by shutdown of the Trans Forcados Pipeline (TFP) at Forcados for repairs while Bonny Nembe Creek Trunkline (NCTL) was shut down due to leaks on Right-of-Way (ROW) near Boro / Awoba as well as at the Krakama axis. Production was also interrupted at Agbami, Akpo, Egina, Escravos, Usan, Amenam, Ima and Qua Iboe due to lube oil loss, pump issues, loss of power, riser protector replacement, pipeline repairs and flare management.”

The NNPC noted that national gas production in November decreased by 3.23 per cent at 228.65 billion cubic feet (BCF), compared to output in October 2019; translating to an average daily production of 7.622 bllion standard cubic feet per day (SCFD).

The NNPC, however, added that the daily average natural gas supply to gas power plants increased by 16.53 per cent to 645 million SCFD, equivalent to power generation of 2,178 megawatts (MW).

It added that to “Ensure continuous increased premium motor spirit (PMS) supply and effective distribution across the country, a total of 0.84 billion litres of PMS translating to 27.99 million liters per day were supplied for the month; in the downstream sector.

“The Corporation has continued to diligently monitor the daily stock of Premium Motor Spirit (PMS) to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.

“In November 2019, a total of 68 pipeline points were vandalized representing about 94% increase from the 35 points vandalized in October 2019. Out of the vandalized points, 15 failed to be welded while only two pipeline points were ruptured.

“Mosimi-Ibadan axis accounted for 31% of the breaks, ATC-Mosimi witnessed 19% while Ibadan-Ilorin and other routes accounted for 15% and 35% respectively. NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.”

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