NNPC’s Trading Surplus Increases To N39.85bn
The Nigerian National Petroleum Corporation, on Thursday, announced a N39.85bn trading surplus for February 2021, representing a 314.24 per cent rise from the N9.62bn surplus it recorded in the preceding month.
The NNPC disclosed this in its February 2021 edition of its monthly financial and operations report.
Trading surplus or trading deficit is derived after deduction of the expenditure from the revenue for the period under review.
The report stated that in February, NNPC’s group operating revenue increased by 35.64 per cent or N152.07bn to N578.79bn, compared to January.
It said expenditure for the month increased by 29.21 per cent or N121.83bn to s N538.94bn, while expenditure as a proportion of revenue was 0.93 per cent as against 0.98 per cent in the previous month.
The increase in trading surplus was attributed to the reconciled accounts by the corporation’s downstream subsidiary, the Petroleum Products Marketing Company, using the Petroleum Products Pricing Regulatory Agency pricing template.
Other factors that boosted the trading surplus figure, according to the corporation, include the performance of Duke Oil, Nigerian Gas Company and Nigerian Gas Marketing Company, which recorded gains as a result of increased debt collection and cost optimisation measures.
The report, however, stated that during the period under review, 54 pipeline points were vandalised, representing 50 per cent increase from the 27 points recorded in January 2021.
The Warri area accounted for 50 per cent and Mosimi area accounted for 39 per cent of the vandalised points, while Kaduna and Port Harcourt areas accounted for seven and four per cent respectively.
In the period under review, the corporation supplied a total of 1.41 billion litres of Premium Motor Spirit (petrol) translating to 50.52 million litres/day.
In terms of natural gas offtake, commercialisation and utilisation, out of the 206.05 billion cubic feet produced in February 2021, a total of 133.06BCF was commercialised consisting of 40.15BCF and 92.91BCF for the domestic and export market respectively.
This translates to a total supply of 1,433.75 million standard cubic feet per day of gas to the domestic market and 3,318.25mmscfd of gas supplied to the export market for the month.
This implies that 64.48 per cent of the average daily gas produced was commercialised while the balance of 35.52 per cent was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 7.67 per cent for the month under review (i.e. 565.52mmscfd) compared with average gas flare rate of 7.12 per cent (i.e. 529.20mmscfd) for the period of February 2020 to February 2021.