The Nigerian National Petroleum Corporation (NNPC) recorded an increase of 80.12% in trading surplus in December 2020, the figure stood at ₦24.19billion compared to the ₦13.43billion surplus recorded in November 2020.
This was disclosed in the December 2020 edition of the corporation’s Monthly Financial and Operations Report (MFOR), according to the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru.
Trading surplus or trading deficit is derived after the deduction of the expenditure profile from the revenue in the period under review.
According to Obateru in a statement issued and seen by Nairametrics, the operating revenue of the NNPC Group in December 2020 as compared to November 2020 increased by 33.44% or N137.00billion to stand at N546.65billion.
Also, expenditure for the month increased by 27.54% or N112.81billion to stand at N522.47billion. The December 2020 expenditure as a proportion of revenue is 0.96 as against 0.97 in November 2020.
What is NNPC saying
The report indicated that the 80.12% increase was due mainly to the significant rise in the profit of NNPC’s flagship Upstream entity, the Nigerian Petroleum Development Company (NPDC) amid improved market fundamentals and strong global demand for crude oil.
Other contributory factors to the robust trading surplus recorded in the month under review include the improved performance by the Nigerian Gas Marketing Company (NGMC), the Petroleum Products Marketing Company (PPMC), the National Engineering and Technical Company (NETCO) and Duke Oil Incorporated which recorded noticeable gains in their operations.
In the Downstream sector, 2.26billion litres of white products were sold and distributed by PPMC in December 2020 compared to 1.72billion litres in November 2020.
This comprised 2.254billion litres of petrol, translating to 72.72million litres/day, 11.40 million litres of Automotive Gas Oil (diesel) and 0.48 million litres of kerosene.
It added that the Total sale of white products for the period of December 2019 to December 2020 stood at 18.456billion litres and petrol accounted for 18.325billion litres or 99.29%.
In monetary terms, the volume translates to a value of ₦288.77billion recorded on the sale of white products by PPMC in the month of December 2020 compared to ₦226.08 billion sales in November 2020.