NNPC group operating revenue dips

By John Ofikhenua, Abuja

The Nigerian National Petroleum Corporation (NNPC) on Monday said that in September 2019, its group operating revenue in comparison with the previous month’s performance decreased marginally by 0.15percent or N0.79billion to stand at N539.81 billion.

According to the Corporation’s monthly financial report for the month of August, expenditure for the month declined of 0.78 percent or N4.18billion, at N531.22billion was recorded.

It also indicated that the proportion of expenditure to revenue is almost at par for the current month as well as in the prior two consecutive months of July and August 2019.

The report showed another increased trading surplus of ?8.59billion compared to the ?5.20billion surplus posted in August 2019.

The significant increase of 65 percent in the month, according to the corporation, is due largely to the improved surplus posted by both the upstream and downstream sector; as noticeable with IDSL, NGC, NGMC, PPMC, NPSC and Duke Oil Incorporated.

It also stressed that the “percentage increase in the performances of these Small Business Units (SBU) accommodated the sharp decline in NPDC’s performance as compared to last month. The increased surplus was equally supplemented with reduced deficit posted by the Refineries and the CHQ.”

On refineries economics for the period September, 2019, the report said that the Corporation has been adopting a Merchant Plant Refineries Business Model since January 2017.

The model takes cognizance of the Products Worth and Crude Costs.

Continuing, NNPC said that the combined value of output by the three refineries (at Import Parity Price) for the month of September 2019 amounted to N1.03billion. No associated crude plus freight cost for the three refineries since there was no production while operational expenses amounted to N11.24billion.

This, said the report, “resulted from current operating deficit of N10.20billion and an adjusted deficit of N7.07billion by the Refineries; after adjusting for prior overstated deficits by PHRC.”

Of the August 2019 Production, NNPC said that the Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 31.65 percent and 42.3 percent respectively, while AF, NPDC and Independents accounted for 9.73 percent 9.77 percent and 6.48 percent respectively.