NNPC announces ₦43.57bn trading surplus in April 2021 MFOR

*The state oil firm’s report indicates a 34.29 percent reduction in the number of vandalised oil pipeline points from 70 in March to 46 in April this year

Isola Moses | ConsumerConnect

In line with its commitment to transparency, accountability to stakeholders and consumers, the Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦43.57billion in April 2021.

The Corporation said that the proceeds represent a 23.64% increase over the ₦35.24billion surplus it recorded in the previous month of March 2021.

This is contained in the April 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of NNPC, disclosed this development in a statement issued Sunday, August 8, 2021, in Abuja, FCT.

The Corporation stated that its trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.

The report noted that the NNPC Group operating revenue April 2021, as compared to March 2021, increased by 17.73% or N80.67billion to stand at N535.61billion.

Likewise, expenditure for the month increased by 17.24% or N72.34billion to stand at N492.05billion, while expenditure as a proportion of revenue stood at 0.92%, same as last month.

The report attributed the rise in trading surplus to the activities of the Nigerian Petroleum Development Company (NPDC), the Corporation’s Upstream subsidiary, such as 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 during the period.

The statement also said that the positive outlook was further consolidated by the robust gains of two other subsidiaries namely: Duke Oil and the National Engineering and Technical Company (NETCO).

According to NNPC, in order to ensure uninterrupted supply and effective distribution of fuel across the country in the downstream, a total of 1.67billion litres of Premium Motor Spirit (PMS), otherwise known as petrol, translating into 55.79mn liters/day were supplied in the month under review.

The report also indicated a 34.29% reduction in the number of pipeline points vandalised from 70 in the previous month of March 2021 to 46 in April 2021. While Port Harcourt area accounted for 54%, Mosimi area accounted for 46% of the vandalised points.

Moreover, in the Gas sector of the industry, the Corporation produced a total of 209.27billion cubic feet (bcf) of natural gas in the month under review.

This translates into an average daily production of 6,975.72million standard cubic feet per day (mmscfd), said the statement.

For the period of April 2020 to April 2021, 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.

In terms of natural Gas off-take, commercialisation and utilisation, out of the 206.40bcf supplied in April 2021, Dr. Obateru stated that a total of 126.83bcf of gas was commercialised, consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.

This quantity translates into 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 report noted.

It said this implies that 61.45% of the average daily gas produced was commercialised, 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.

According to the report, the Corporation delivered a total of 795mmscfd to gas-fired power plants April 2021 to generate an average power of about 3,416 MW in the Nigerian economy.

It is noted that the NNPC started publishing its Monthly Financial and Operation Report October 2015, making the April 2021 edition the 69th in the series.

The MFOR is published in line with the commitment of the Corporation’s Management to be more transparent, accountable to its stakeholders, and the Nigerian consumers.