NNPC’s Operating Revenues Decline By N120.9bn In January

Nigerian National Petroleum Corporation (NNPC)’s operating revenue dropped to N425.74 billion, according to the group’s full market operations report for January 2021.

This indicates a decrease of 22.12 percent or N120.92 billion to stand at N425.74 billion compared to the figure of December 2020.

The development can be attributed to the rising landing cost of petrol and the NNPC’s inability to increase the ex-depot price.

The data revealed that the expenditure for the month dropped by 20.79 percent or N106.03 billion to stand at N416.44 billion, falling from 0.98 percent to 0.96 percent as a proportion of revenue.

NNPC said it earned N190.72 billion from the sale of white products by PPMC in January compared to N288.77 billion sales in December 2020.

“Total revenues generated from the sales of white products for the period January 2020 to January 2021 stood at N2,070.34 trillion, where petrol contributed about 99.13 per cent of the total sales with a value of N2.05 trillion,” it added.

The report also reflected a sizeable reduction to N9.3 billion compared to a surplus of N24.1 billion in the previous month, a difference of N14.89 billion.

“This 66th edition of the report in January 2021 presents a reduced trading surplus of N9.30 billion compared to the N24.19 billion surplus in December 2020.

“The 61.55 per cent decrease was due mainly to high average landing cost and low sales price of petrol by the Petroleum Products Marketing Company (PPMC). This is despite the significant rise in the Nigerian Petroleum Development Company (NPDC’s) profit amid improved market fundamentals and strong global demand for crude,” the report stated.

NNPC’s Operating Revenues Decline By N120.9bn In January

In January 2021, NNPC said it remitted N163.63 billion to the Federation Account Allocation Committee (FAAC), adding that from January 2020 to January 2021, total remittances to FAAC was N2.1 trillion; out of which the federation and JV with government priority projects received N850.63 billion and N1,041.48 billion respectively.

On dollar payments to JV cost recovery and the federation account, the NNPC put the total export receipt at $108.75 million for January 2021 as against $125.25 million in December 2020.

It said proceeds from crude oil amounted to $24.32 million while gas and miscellaneous receipts stood at $66.28 million and $18.15 million respectively.

“Of the export receipts, $28.43 million was remitted to the federation account while $80.32 million was remitted to fund the JV cost recovery for the month of January 2021 to guarantee current and future production,” the report stated

The corporation put the total sale of white products for the period January 2020 to January 2021 at 17.11 billion litres where petrol accounted for 16.9 billion litres or 99.31 percent.

At an average oil price of $50.78/barrel and exchange rate of N379/$, the domestic crude oil lifted by NNPC was valued at $382.8 million or a naira equivalent of N145 billion for December 2020.

It added that between December 2019 and December 2020, a total volume of 708 million barrels of crude oil and condensates were lifted by all parties.

The Corporation stated that in December 2020, the total crude oil production in Nigeria decreased by 2.31 million barrels or 4.99 percent at 44.02mb with daily average of 1.42 mb/d when compared to November 2020 production.

“Production was disrupted by shutdown of the Forcados and Okono terminals due to suspected leaks on Trans Escravos Pipeline and Mystras – Okpoho subsea pipeline respectively.

“Likewise, Abo, Usan, Ima and Escravos terminals were shut down for maintenance. Production was also interrupted at Yoho, Agbami. Pennington, Qua Iboe and Erha terminals due to planned repairs/maintenance, fire incidence, pump and flare management,” it stated.

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