NNPC Posts 34% trading surplus in December

TRACKING____The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦5.28 billion for December 2019.

The corporation disclosed this in its Monthly Financial and Operation Report (MFOR) for December released in Abuja on Sunday.

It said that the amount was an increase compared to the ₦3.95 billion surplus posted in November 2019.

The report showed that the 34 per cent increase for the period resulted from improved performances by some of its entities both in the Upstream and Downstream sectors.

It listed NNPC’s subsidiaries with notable improved positions to include: Integrated Data Services Litd. (IDSL), Nigeria Gas Marketing Company (NGMC), Nigerian Pipeline and Storage Company (NPSC) and Duke Oil Incorporated.

It explained that in general terms, the performance was impacted positively by the reduced deficit posted by NNPC corporate Headquarters during the period under review.

The corporation also attributed performance to adjustments in previously understated revenues by IDSL and Duke Oil, reduction in the costs of pipeline repairs/Right of Way maintenance and gas purchases by NPSC and NGMC respectively.

In the Gas sector, it revealed that out of the 239.29 billion Cubic Feet (BCF) of gas supplied in December 2019, a total of 148.32BCF of gas was commercialised.

This, it noted consisted of 34.78BCF and 113.54BCF for the domestic and export market respectively.

According to the report, this translated to a supply of 1,121.77 million Standard Cubic Feet per day (mmscfd) of gas to the domestic market and 3,662.70 mmscfd of gas supplied to the export market for the month.

The corporation in the report noted that 62.22 per cent of the average daily gas produced was commercialised, while the balance of 37.78 per cent was re-injected used as Upstream fuel gas or flared.

It added that gas flare rate was 7.78 per cent for the month under review, i.e. 598.03 mmscfd, compared to the average gas flare rate of 8.56 per cent i.e. 678.02 mmscfd for the period December 2018 to December 2019.

The report said that gas supply for the period December 2018 to December 2019 stood at 3,105.48BCF out of which 466.00BCF and 1,369.90BCF were commercialised for the domestic and export market respectively.

It explained that gas re–injected, Fuel gas and Gas flared stood at 1,269.59BCF.

In the Downstream Sector, Petroleum Products Marketing Company (PPMC), NNPC’s Downstream entity in charge of bulk supply and distribution of petroleum products, distributed and sold 2.775 billion litres of white products in December 2019 compared with 0.841 billion litres in November same year.

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“This comprised 2.762 billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013 billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000 billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003 billion litres of Low Pure Fuel Oil (LPFO) in the month under review,” it said .

The MFOR indicated that sale of white products for the period December 2018 to December 2019 stood at 21.861 billion litres, with PMS accounting for 21.514 billion litres or 98.41 per cent.

In terms of value, ₦337.63 billion was made on the sale of white products by PPMC in December 2019, compared to ₦105.62 billion sales in November, 2019.

The report said revenues generated from the sale of white products for the period December 2018 to December 2019 stood at ₦2,705.76 billion, with PMS contributing about 97.56 per cent of the sales with a value of ₦2,639.68 billion.

On pipeline vandalism, the MFOR reported 40 vandalised pipeline points, representing about 41 per cent decrease from the 68 points vandalised in November 2019.

The report said that out of the vandalised points, 10 failed to be welded, while none was ruptured.

“Atlas Cove-Mosimi and Mosimi-Ibadan axis accounted for 35 per cent and 30 per cent of the breaks respectively, while other routes accounted for the remaining 35 per cent.”

NNPC explained in the release that it had stepped up collaboration with the local communities and other stakeholders to stem pipeline vandalism menace. (NAN)