Abuja — The Nigerian National Petroleum Corporation (NNPC) earned N2.92 trillion from the sales of petroleum products in the country in 2019, dropping by 1.35 per cent compared to N2.96 trillion recorded in 2018.
The NNPC, in its recently released 2019 audited financial statement, stated that petroleum products sales accounted for 63.07 per cent of its total revenue for the year.
In particular, the NNPC recorded total revenue of N4.63 trillion, dropping by 2.32 per cent compared to revenue of N4.74 trillion recorded in 2018.
The NNPC stated that petroleum products sales include the sale of Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK), Automotive Gasoline Oil (AGO), lubricants and other related products.
Furthermore, the NNPC financials stated that the corporation earned N1.079 trillion from the sales of crude oil, 6.17 per cent lower than the N1.15 trillion revenue recorded from the sale of the same commodity in 2018.
Also, revenue from sales of gas dipped by 7.35 per cent to N489.91 billion in 2019, from N528.8 billion recorded in 2018; while revenue from services appreciated by 47.9 per cent to N144.68 billion in 2019, from N97.82 billion in 2018.
The NNPC explained that the sale of natural gas represents the invoice value (fair value of the consideration) of natural gas sold to third parties; while revenue from services consist of revenue from seismic contracts, time based contracts and from gas transmission tariffs.
Giving a breakdown of its earnings by markets, the NNPC stated that N1.06 trillion, N2.92 trillion, N489.91 billion and N131.27 billion worth of crude oil, petroleum products, gas and services, respectively, were sold in the Nigerian market; while N665 million and N12.75 billion was recorded as revenue from services from the United Kingdom and Cyprus respectively; and N16.2 billion was recorded as revenue from crude oil sales in Panama.
The NNPC further stated that it recorded cost of sales of N3.92 trillion in 2019, dropping by 5.31 per cent, compared to N4.14 trillion recorded in 2019.
Giving a breakdown of its cost items, the NNPC disclosed that petroleum products expenses, which also include under recovery stood at N2.82 trillion in 2019, compared to N2.77 trillion in 2018; freight insurance and other charges, N22.7 billion; depreciation of property, plant and equipment N157.6 billion; Amortisation of intangible assets N17.69 billion; royalties to the Federal Government of Nigeria N200.76 billion; gas purchase N144.84 billion and direct well expenses N19.91 billion.
Others are crude handling and port charges N75.61 billion; safety, environment and pollution control N3.38 billion; Niger Delta Development Commission (NDDC) levy N40.97 billion; rig site and stimulation expenses N1.1 billion; allocated technical and production costs N68.65 billion; pipeline maintenance costs N6.74 billion; and flow station expenses N77.87 billion.
The rest are labour costs N49.76 billion; production costs N68.21 billion; technical and consultancy charges N2.87 billion and other operating expenses N141.07 billion.