The Nigerian National Petroleum Corporation (NNPC) has announced a ₦39.85billion trading surplus for the month of February 2021 representing a massive 314.24% leap from the ₦9.62billion surplus it recorded in January 2021. This is contained in the February 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR), according to a press release by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru. Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.
According to the report, in February 2021, NNPC Group operating revenue as compared to January 2021, increased by 35.64% or N 152.07billion to stand at N578.79billion. Similarly, expenditure for the month increased by 29.21% or N121.83billion to stand at N538.94billion. The expenditure for the month as a proportion of revenue was 0.93% as against 0.98% the previous month. The significant increase in trading surplus is attributed mainly to reconciled accounts by the Corporation’s downstream subsidiary, the Petroleum Products Marketing Company (PPMC), using the Petroleum Products Pricing Regulatory Agency (PPPRA) pricing template. Other factors that boosted the trading surplus figure, according to the Corporation, included the performance of Duke Oil, Nigerian Gas Company (NGC) and Nigerian Gas Marketing Company (NGMC) which recorded robust gains as a result of increased debt collection and cost optimisation measures. Conversely, during the period under review, 54 pipeline points were vandalised representing 50% increase from the 27 points recorded in January 2021.
The Warri Area accounted for 50% and Mosimi Area accounted for 39% of the vandalised points while Kaduna and Port Harcourt Areas accounted for 7% and 4% respectively. NNPC continues to work in collaboration with the local communities and other stakeholders to eliminate the menace of pipeline vandalism. In the period under review, the Corporation supplied a total of 1.41bn litres of Premium Motor Spirit (petrol) translating to 50.52m litres/day. In terms of natural gas off-take, commercialisation and utilisation, out of the 206.05Billion Cubic Feet (BCF) produced in February 2021, a total of 133.06BCF was commercialised consisting of 40.15 BCF and 92.91 BCF for the domestic and export market respectively.
This translates to a total supply of 1,433.75Million Standard Cubic Feet Per Day (mmscfd) 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% of the average daily gas produced was commercialised while the balance of 35.52% was re-injected, used as upstream fuel gas or flared. Gas flare rate was 7.67% for the month under review (i.e. 565.52mmscfd) compared with average gas flare rate of 7.12% (i.e. 529.20mmscfd) for the period of February 2020 to February 2021. The February 2021 NNPC Monthly Financial and Operations Report is the 67th in the series. It is published in keeping with the Corporation’s commitment to transparency and accountability.