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Market Digest Nigeria

Economy

NNPC Records N24.19bn Surplus

NNPC Records N24.19bn Trading Surplus In December.

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This is contained in the December 2020 edition of the NNPC Monthly Finan­cial and Operations Report (MFOR), according to a state­ment by Dr. Kennie Obateru, the Group General Manager, Group Public Affairs Divi­sion of the Corporation.

Trading surplus or trad­ing deficit is derived after de­duction of the expenditure profile from the revenue in the period under review.

According to the report, the operating revenue of the NNPC Group in December 2020, as compared to Novem­ber 2020, increased by 33.44% or N137.00 billion to stand at N546.65 billion.

The report indicated that the 80.12% increase is 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, 2.26 billion litres of white prod­ucts were sold and distrib­uted by PPMC in the month of December 2020 compared to 1.72 billion litres in the month of November 2020.

This comprised 2.254 bil­lion litres of petrol, trans­lating to 72.72 million litres/ day, 11.40 million litres of Automotive Gas Oil (diesel) and 0.48 million litres of ker­osene.

Total sale of white prod­ucts for the period of De­cember 2019 to December 2020 stood at 18.456 billion litres and petrol accounted for 18.325 billion litres or 99.29%.

In monetary terms, the volume translates to a value of N288.77 billion recorded on the sale of white prod­ucts by PPMC in the month of December 2020 compared to N226.08 billion sales in No­vember 2020.

Total revenues generated from the sale of white prod­ucts for the period December 2019 to December 2020 stood at N2.217 trillion, where pet­rol contributed about 99.09% of the total sales with a value of N2.197 trillion.

In December 2020, 43 pipe­line points were vandalized, representing about 18.60% increase from the 35 points recorded in November 2020.

Mosimi Area accounted for 56% of the vandalized points while Kaduna Area and Port Harcourt account­ed for the remaining 33% and 12%, respectively.

Meanwhile, the Minister of State for Petroleum Re­sources, Timipre Sylva, has said his ministry is expected to generate $600 million from its new marginal fields.

The minister made the disclosure at the fifth edition of the Special Ministerial Briefings coordinated by the Presidential Communication Team, held at the Presiden­tial Villa, Abuja, on Thursday.

Sylva stated that the pro­cess for the acquisition of the marginal fields had been completed and there were 161 winning bids and they had been notified.

“We have started to re­ceive signature bonuses paid by the winners.

“At least from the last ac­count report I got from DPR, almost 50 percent of the win­ners have paid. What we are expecting from the whole process is about $600 million.

“And of course, we have also given allowance for peo­ple to pay in naira so you have to pick which currency to pay in – in naira or dollars.

“So, at this point we can­not give any figure in any currency but just to tell you that payments have been en­couraging and they have up to April 20, 2021.

“So there is some time al­though the jury is still out but we believe that by April we would have got a lot of them to pay,’’ the minister said.

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