NNPC Announces 80% Growth in December Trading Surplus

Nigeria's National Petroleum Corporation (NNPC) announced an 80 percent increase in trading surplus. In December 2020, the figure was N24.19 billion, a big jump from the N13.43 billion recorded just a month before in November. Similarly, expenditure for the month increased by 27.54 percent to stand at N522.47 billion.

(Trading surplus or trading deficit is gotten after the total expenditure is removed from the revenue in a specific period.)

Dr. Kennie Obateru, the General Manager, Group Public Affairs Division of the corporation announced this at their Monthly Financial and Operations Report for December.

The report also showed that the 80.12 percent increase was due to the jump in the profit of NNPC’s subsidiary, the Nigerian Petroleum Development Company (NPDC) amid improved market fundamentals and strong global demand for crude oil.

Factors which contributed to the increased trading surplus are the improved performance by the Nigerian Gas Marketing Company (NGMC) and the Petroleum Products Marketing Company (PPMC). Others include the National Engineering and Technical Company (NETCO) and Duke Oil Incorporated which saw significant gains in their operations.

In the Downstream, the report disclosed that 2.26billion liters of white products were sold and distributed by PPMC in December of 2020, compared to the 1.72billion liters distributed in November.

In a breakdown, it can be seen that the products are made up of 2.254 billion liters of petrol, which translates to 72.72million liters per day, 11.40 million liters of Automotive Gas Oil (diesel), and 0.48 million liters of kerosene.

On the oil Pipelines, it shows that was an increase of about 18.6 percent in the number of vandalized pipelines, bringing the number to 43 pipelines. Eight more than the 35 pipelines recorded in November.

In the Gas Sector, the report showed that natural gas production in December was at 213.34Billion Cubic Feet (BCF) translating to an average daily production of 6,881 million standard cubic feet of gas per day.

The daily average supply of natural gas to power plants also increased by 3.52 percent to 816 mmscfd, equivalent to power generation of 3,445MW.