The Nigerian National Petroleum Company (NNPC) Limited has announced a trading surplus of N141.96 billion in June 2021, representing a major leap when compared to a deficit of N37.46 billion that was recorded in May 2021.
The Group General Manager, Group Public Affairs of NNPC, Garba Muhammad, in a statement on Sunday said that this disclosure was contained in the June 2021 figures of the NNPC Monthly Financial and Operations Report (MFOR).
A trading surplus or trading deficit refers to an economic indicator which is derived after deduction of the expenditure profile from the revenue for the period under review. If the revenue is more than the expenditure, then it becomes a surplus, whereas if the expenditure is more than the revenue, then it becomes a deficit.
The report stated that in June 2021, NNPC Group operating revenue when compared to May 2021, decreased by 9.07% or N89.27 billion to stand at N894.64 billion. Similarly, the expenditure for the month decreased by 29.32% or N299.44 billion to stand at N721.93billion.
Thus, in the period under review, expenditure as a proportion of revenue was 0.81%, compared to the figure in May which stood at 1.04%.
The report attributed the increase in trading surplus to mainly increased sales of crude oil and gas by the Nigerian Petroleum Development Company (NPDC), an upstream subsidiary of NNPC, and the increased gas sales and depreciation postings by the Nigerian Gas Company (NGC).
It said that the positive outlook was further supported by the performance of Duke Oil and the Nigerian Gas Marketing Company (NGMC) which also added to the improved bottom line.
The report also stated that a total of 1.63 billion litres of Premium Motor Spirit (PMS) otherwise known as petrol, which translates to 54.5 million litres per day, were supplied in June 2021, in order to ensure continuous supply and effective distribution of the product.
The report indicated that in June 2021, 47 pipeline points were vandalised, representing 26.56% decrease from the 64 points recorded in May 2021. Port Harcourt Area accounted for 43%, while Mosimi and Kaduna Areas accounted for 51% and 6%, respectively, of the vandalised points.
Going further, the report stated that in the gas sector, a total of 223.77 billion cubic feet (bcf) of natural gas was produced in the month of June 2021, translating to an average daily production of 7,459.88 million standard cubic feet per day (mmscfd).
For the period of June 2020 to June 2021, it said a total of 2,890.11bcf of gas was produced, representing an average daily production of 7,321.36mmscfd during the period.
The reports states as well that the Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed 59.84%, 20.26% and 19.90% respectively, to the total national gas production.
The 71st edition of the MFOR highlights NNPC’s activities for the period of June 2020 to June 2021.
In line with its commitment to transparency and accountability, NNPC has continued to sustain effective communication with stakeholders through this report via publications on its website, independent online news portals and in national dailies.
What you should know
Recall that in June 2020, the state oil giant, NNPC Limited, in its resolve to ensure transparency, made history on Friday with the publication of its first audited financial statements after 43 years of its operation.
The NNPC in its published audited financial statement for the 2020 financial year, showed that it recorded a profit after tax of N287 billion despite its revenue falling by 19.76% in 2020 to N3.718 trillion from N4.634 trillion declared in 2019.