By Kish Onwunali, in Abuja
The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦13.43Billion (or $35.4Million) for the month of November 2020, up by 54% when compared to the ₦8.71Billion ($22.9Million) surplus recorded in October 2020.
The November 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR) indicates that export sales of crude oil and gas for the month stood at $108.84Million, a 70.33% increase over the value of sales for the previous month. Crude oil export sales contributed $73.09Million (67.15%) of the dollar transactions compared with $12.38Million contribution in the previous month; while the export gas sales amounted to $35.75Million in the month.
The total crude oil and gas export for the period of November 2019 to November 2020 stood at $2.89Billion.
The trading surplus or trading deficit is derived by the deduction of the expenditure profile from the revenue in the period under review.
The MFOR November 2020 report notes that NNPC Group’s operating revenue, compared with October 2020 earnings, decreased slightly by 0.02% or ₦0.09Billion ($236, 842) to stand at ₦423.08Billion ($1.113Billion).
Expenditure for the month decreased by 1.16% or N4.81Billion (12.6Million) to stand at N409.65Billion ($1.07Billion), leading to the ₦13.43Billion ($35.4Million) 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”, says the press release.