NNPC trading surplus rises by 860% to N20.4bn in one month

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By Michael Eboh 

The Nigerian National Petroleum Corporation, NNPC, Thursday, announced a trading surplus of N20.36 billion in July 2020, rising by 860 per cent from a surplus of N2.12 billion recorded in June.

In a statement on its Monthly Financial and Operations Reports for July 2020, Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, stated that significant increase in its bottom line was largely due to the 178 per cent rise in the surplus posted by the NNPC’s upstream subsidiary, the Nigerian Petroleum Development Company, NPDC.

Obateru explained that NPDC’s impressive result was bolstered by the continuous improvement in global crude oil demand for the third consecutive month. 

He added that the NNPC’s financials was further impacted by the 739 per cent increase in the profit of Integrated Data Services Limited, IDSL, and a 51 per cent growth in performance by Duke Oil Incorporated, both companies of NNPC. 

According to him, returns from NNPC Retail Limited and Nigerian Gas Marketing Company, NGMC, during the period under review also grew by 28 per cent and 24 per cent respectively, owing to increased sales and improved debt collection. 

Furthermore, in the downstream sector, Obateru added that to ensure continuous stability in Premium Motor Spirit, PMS, supply and effective distribution across the country, 1.02 billion litres of PMS, translating to 32.95 million liters per day were supplied for the month. 

He said: “The corporation has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the nation. 

“The report noted that during the period under review, 36 pipeline points were vandalized, representing about nine per cent increase from the 33 points recorded in June 2020. 

“Atlas Cove-Mosimi and Aba-Enugu network accounted for 28 per cent each, while PHC-Aba and the other locations recorded 14 per cent and the remaining 31 per cent respectively. NNPC in collaboration with the local communities and other stakeholders continuously have strived to reduce the menace of pipeline vandalism.

” In the gas sector, Obateru noted that gas production in July 2020 increased by 2.19 per cent at 236.34 billion cubic feet (BCF), compared to output in June 2020; translating to an average daily production of 7,623.98 million Standard Cubic Feet of gas per day (mmscfd). 

Likewise, he explained that the daily average natural gas supply to gas power plants stood at 707 mmscfd, equivalent to power generation of 2,421 megawatts, MW. 

“For the period July 2019 to July 2020, 3,079.64BCF of gas was produced, representing an average daily production of 7,812.11mmscfd during the period. 

“Period-to-date production from Joint Ventures, JV, Production Sharing Contracts, PSC, and NPDC contributed about 70.88 per cent, 20.37 per cent and 8.75 per cent respectively to the total national gas production,” the NNPC spokesperson noted.