The increasing landing cost of petrol and the inability of the Nigerian National Petroleum Corporation (NNPC) to increase ex-depot price have continued to negatively impact on the operations of the corporation, according to latest data from the national oil company.
Figures from the NNPC from its full market operations report for January indicated that as a result of not being able to sell the product at the prevailing price dictated by incurred expenses, the group’s operating revenue as compared to December 2020, decreased by 22.12 per cent or N120.92 billion to stand at N425.74 billion.
Expenditure for the month dropped by 20.79 per cent or N106.03 billion to stand at N416.44 billion, falling from 0.98 per cent to 0.96 per cent as a proportion of revenue.
The corporation stated that 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 corporation’s books 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.
The NNPC recently stated that its trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.
Aside that loss, the Group Managing Director of the corporation, Mr. Mele Kyari, had said in March that as much as N120 billion was being spent on under-recovery monthly, noting that while the actual cost of importation and handling charges amounted to N234 per litre, the government was still selling fuel at N162 per litre.
“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.
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 per cent.
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.
In addition, it stated that between December 2019 and December 2020, a total volume of 708 million barrels of crude oil and condensates were lifted by all parties.
Still in December 2020, the NNPC stated that the total crude oil production in Nigeria decreased by 2.31 million barrels or 4.99 per cent 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.