- Posts crude, gas export sales of $108.84m
- Expenditure fell by N4.81bn
- Crude & gas exports stood at $2.89bn in year to Nov. 2020
Two major cost management related actions at both the Nigerian Gas Company (NGC) and the headquarters helped Nigeria’s state-owned energy giant, the Nigerian National Petroleum Corporation (NNPC) post a 54 per cent surplus in its trade surplus for the month of December, figures contained in the corporation’s monthly financial and operations report (MFOR) for the month have shown.
Specifically, at the NGC, there was a substantial decrease in expenditure as a result of cost reduction in overheads, while at its corporate headquarters, the NNPC management saw to a 38 per cent reduction in its deficit, which helped to reduce pressure on revenues for the month under review.
In addition, the national oil company’s surplus was bolstered by noticeable improved profits for additional engineering services rendered by the Nigerian Engineering and Technical Company (NETCO), and increased revenue from import activities posted by Duke Oil Incorporated.
“These healthy performances dominated the positions of all other NNPC subsidiaries to record the Group surplus,” the corporation said in a statement by KennieObateru, group general manager, group corporate affairs division.
The monthly financial and operations report (MFOR) for any month shows the trading surplus or trading deficit after deduction of the expenditure profile from the revenue in the period under review.
The NNPC saw a trade surplus of N13.43 billion for November 2020, up 54 per cent from the N8.71 billion surplus recorded in October. The November figure was derived from $108.84 million in sales of crude oil and gas exportfor the month.
The report indicated that in November 2020, NNPC Group’s operating revenue compared to October last year decreased slightly by 0.02 per cent or N0.09 billion to stand at N423.08 billion. Similarly, expenditure for the month decreased by 1.16 per cent or N4.81 billion to stand at N409.65 billion leading to the N13.43 billion trading surplus.
Overall, expenditure as a proportion of revenue was 0.97 in November 2020 as against 0.98 in October 2020.
Export sales of crude oil and gas for the month stood at $108.84million, making a 70.33 per cent increase compared to the previous month. Crude oil export sales contributed $73.09million (67.15 per cent) of the dollar transactions compared with $12.38million contribution in the previous month; while export gas sales amounted to $35.75million in the month under review. The total crude oil and gas export for the period of November 2019 to November 2020 stood at $2.89billion.
In the gas sector, a total of 222.34 billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 7,411.52 million standard cubic feet per day (mmscfd). For November 2019 to November 2020, the corporation produced a total of 3,004.06 bcf of gas, representing an average daily production of 7,642.69 mmscfd during the period. Out of this volume, production from Joint Ventures (JVs) accounted for 67.29 per cent, production sharing contracts (PSCs) accounted for 19.97 per cent, while the Nigerian Petroleum Development Company (NPDC) accounted for 12.74 per cent.
A further breakdown showed that 137.41 bcf of gas was commercialized, consisting of 39.99 bcf and 97.42 bcf for the domestic and export market respectively. This translates to a total supply of 1,332.82 mmscfd of gas to the domestic market and 3,247.44 mmscfd of gas supplied to the export market for the month. This implies that 62.55 per cent of the average daily gas produced was commercialized, while 37.45 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 7.89 per cent for the month under review translating to 577.39 mmscfd.
Also, 789 mmscfd was delivered to gas-fired power plants last year November to generate an average power of about 3,358 MW compared with October’s 750 mmscfd.
NNPC said, its downstream sector led by its subsidiary, the Petroleum Products Marketing Company (PPMC), sold and distributed 1.725 billion litres of white products in the month under review, compared with over 1.224 billion litres in the previous month of same year. This comprised 1.723 billion litres of premium motor spirit (PMS), 2.13 million litres of automotive gas oil (AGO) also known as diesel and 0.33 million litresof dual purpose kerosene (DPK).
Total sale of white products for November 2019 to November 2020 stood at 17.031 billion litres, with PMS accounting for 16.911 billion litres or 99.29 per cent. In monetary terms, N226.08 billion was made on the sale of white products by PPMC in November last year compared to N158.04 billion sales in October same year. Total revenues generated from the sales of white products for November 2019 to November 2020 stood at N2.034 trillion, where PMS contributed about 99.09 per cent of the total sales, with a value of over N2.015 trillion.