Nigerian oil giant reports 54% increase in trading surplus for November 2020

The state-owned Nigerian oil firm, the Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦13.43 billion for…

The state-owned Nigerian oil firm, the Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦13.43 billion for the month of November 2020 up by 54% when compared to the ₦8.71 billion surplus recorded in October 2020.The Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, noted in a statement in Abuja on Monday that the trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.

Quoting from the November 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR), Dr. Obateru explained that in November 2020, the NNPC Group’s operating revenue compared to October 2020, decreased slightly by 0.02% or ₦0.09 billion to stand at ₦423.08 billion. Similarly, expenditure for the month decreased by 1.16% or N4.81 billion to stand at N409.65 billion leading to the ₦13.43billion trading surplus.

Overall, expenditure as a proportion of revenue was 0.97 in November 2020 as against 0.98 in October 2020.

The 54% increase in trading surplus in the November 2020 MFOR is primarily ascribed to the substantial decrease in expenditure from the Nigeria Gas Company (NGC) due to cost reduction in overheads, coupled with 38% reduction in NNPC Corporate Headquarters deficit.

In addition, the NNPC Group’s surplus was bolstered by the 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 report also indicated that export sales of crude oil and gas for the month stood at $108.84m, making a 70.33% increase compared to the last month. Crude oil export sales contributed $73.09m (67.15%) of the dollar transactions compared with $12.38 million contribution in the previous month; while the export gas sales amounted to $35.75 million in the month. The total crude oil and gas export for the period of November 2019 to November 2020 stood at $2.89bn.

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 the period November 2019 to November 2020, a total of 3,004.06BCF of gas was produced, representing an average daily production of 7,642.69mmscfd during the period.

Out of this volume, production from Joint Ventures (JVs) accounted for 67.29%, Production Sharing Contracts (PSCs) accounted for 19.97%, while the Nigerian Petroleum Development Company (NPDC) accounted for 12.74%.  ($1=N380)