The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦13.43billion for the month of November 2020 up by 54% when compared to the ₦8.71billion surplus recorded in October 2020.
This is contained in the November 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR), according to a press release by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru.
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The trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.
The report indicated that in November 2020, NNPC Group’s operating revenue as compared to October 2020, decreased slightly by 0.02% or ₦0.09billion to stand at ₦423.08 billion.
Similarly, expenditure for the month decreased by 1.16% or N4.81billion to stand at N409.65billion 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.
Records crude oil, gas export sales of $108.84m
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.
The November, 2020 MFOR is the 64th in the series which began in August 2015.