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NNPC posts 34% rise in trading surplus for December

By Obas Esiedesa

The Nigerian National Petroleum Corporation (NNPC) has disclosed that it recorded a rise trading surplus of N5.28 billion in its December 2019 operations compared to the N3.95 billion surplus posted in November last year.

NNPC’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, in a statement in Abuja explained that details of the surplus were captured in the December 2019 edition of NNPC’s Monthly Financial and Operations Report (MFOR), which, among others, showed that the 34 per cent increase for the period resulted from improved performances by some of its entities both in the Upstream and Downstream sectors.

Mr. Obateru listed NNPC’s subsidiaries with notable improved positions to include: Integrated Data Services Limited (IDSL), Nigeria Gas Marketing Company (NGMC), Nigerian Pipeline and Storage Company (NPSC) and Duke Oil Incorporated.

He explained that in general terms, the performance was impacted positively by the reduced deficit posted by NNPC corporate Headquarters during the period under review; adjustments to previously understated revenues by IDSL and Duke Oil; and reduction in the costs of pipeline repairs/Right of Way maintenance and gas purchases by NPSC and NGMC respectively.

In the Gas sector, out of the 239.29billion Cubic Feet (BCF) of gas supplied in December 2019, a total of 148.32BCF of gas was commercialized, consisting of 34.78BCF and 113.54BCF for the domestic and export market respectively.

According to him, this translated to a supply of 1,121.77 million standard cubic feet per day (mmscfd) of gas to the domestic market and 3,662.70mmscfd of gas supplied to the export market for the month.

The corporation noted that 62.22 per cent of the average daily gas produced was commercialized, while the balance of 37.78 per cent was re-injected, used as Upstream fuel gas or flared, adding that gas flare rate was 7.78 per cent for the month under review i.e. 598.03mmscfd, compared with the average gas flare rate of 8.56 per cent i.e. 678.02mmscfd for the period December 2018 to December 2019.

NNPC stated that gas supply for the period December 2018 to December 2019 stood at 3,105.48BCF out of which 466.00BCF and 1,369.90BCF were commercialized for the domestic and export market respectively, explaining that gas re–injected, Fuel gas and Gas flared, stood at 1,269.59BCF.

In the Downstream Sector, Petroleum Products Marketing Company (PPMC), NNPC’s Downstream entity in charge of bulk supply and distribution of petroleum products, distributed and sold 2.775billion litres of white products in December 2019 compared with 0.841billion litres in November same year.

This comprised 2.762billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003billion litres of Low Pure Fuel Oil (LPFO) in the month under review.

The MFOR indicated that sale of white products for the period December 2018 to December 2019 stood at 21.861billion litres, with PMS accounting for 21.514billion litres or 98.41 per cent.

In terms of value, N337.63billion was made on the sale of white products by PPMC in December 2019, compared to ₦105.62billion sales in November, 2019.

The corporation said revenues generated from the sales of white products for the period December 2018 to December 2019 stood at N2,705.76 billion, with PMS contributing about 97.56 per cent of the sales with a value of N2,639.68billion.

The 53rd edition of the MFOR reported 40 vandalized pipeline points, representing about 41 per cent decrease from the 68 points vandalized in November 2019.

The report said that out of the vandalized points, 10 failed to be welded, while none was ruptured.

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