NNPC has a trading surplus of N141.96 billion

In June 2021, the Nigerian National Petroleum Company Limited reported a trading surplus of N141.96 billion, compared to a deficit of N37.46 billion in May 2021.

The figures from the NNPC Monthly Financial and Operations Report for June 2021 show this (MFOR).

Garba Deen Muhammad, NNPC Group General Manager, Group Public Affairs Division, announced this in a statement titled ‘NNPC Records 141.96 billion Trading Surplus.’

“A trading surplus or deficit is derived after deducting the expenditure profile from the revenue for the period under review,” the statement said.

“In June 2021, NNPC Group operating revenue decreased by 9.07 percent, or N89.27 billion, to N894.64 billion, compared to May 2021. Similarly, expenditure fell by 29.32 percent, or N299.44 billion, to N721.93 billion for the month.

“As a result, expenditure as a percentage of revenue was 0.81 percent in the period under review, compared to 1.04 percent in May.”

“The increase in trading surplus was primarily due to increased crude oil and gas sales by the Nigerian Petroleum Development Company (NPDC), a NNPC Upstream subsidiary, and increased gas sales and depreciation postings by the Nigerian Gas Company,” according to the report (NGC).

“The positive outlook was bolstered by Duke Oil’s and the Nigerian Gas Marketing Company’s (NGMC) performance, which contributed to the improved bottom line.”

“After deducting the expenditure profile from the revenue for the period under consideration, the trading surplus or deficit is calculated.

“The in plus or trading deficit is calculated after deducting the expenditure profile from the revenue for the period under consideration,” according to the report.

In June 2021, a total of 1.63 billion litres of Premium Motor Spirit (PMS) were delivered, equating to 54.50 million litres per day, to ensure continuous supply and effective distribution across the country.

“According to the report, 47 pipeline points were vandalized in June 2021, a decrease of 26.56 percent from the 64 points recorded in May 2021. The Port Harcourt area accounted for 43% of the vandalized points, while the Mosimi and Kaduna areas accounted for 51% and 6%, respectively.

“A total of 223.77 billion cubic feet (bcf) of natural gas was produced in the gas sector in June 2021, corresponding to an average daily production of 7,459.88 million standard cubic feet per day” (mmscfd).

“From June 2020 to June 2021, a total of 2,890.11 billion cubic feet of gas was produced, with an average daily production of 7,321.36 million cubic feet per day.

“Joint Ventures (JVs), Production Sharing Contracts (PSCs), and NPDC production contributed 59.84 percent, 20.26 percent, and 19.90 percent, respectively, to total national gas production during the period.

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“The MFOR’s 71st edition highlights the NNPC’s activities from June 2020 to June 2021.

“In keeping with its commitment to transparency and accountability, the NNPC has maintained effective communication with stakeholders through the publication of this report on its website, independent online news portals, and national dailies.”