NNPCL's profit slumps by 60% in September as oil output hits 5-month low

Nigerian National Petroleum Company Limited (NNPCL) saw its profit after tax plunge by as much as 59.9 per cent to N216 billion last month from N539 billion in August, hammered by a weaker oil production level that hit its lowest in five months.

The state-owned energy company’s latest monthly report released on Tuesday showed crude oil & condensates dropped from 1.64 million barrels per day (bpd) in August to 1.61 million in September, its weakest output since April.

Gas production also diminished to its smallest volume ever this year, straining profit.

Earlier in October, NNPL’s chief executive officer, Bayo Ojulari, said a recent nationwide strike by some oil workers cost Nigeria over 200,000 barrels daily, with adverse implications for gas production and electricity generation.

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Nigeria lost about $39.6 million (N57.4 billion) in the three days the industrial action lasted, at an average price of $66 per barrel.

The report showed the statutory payment the corporation transferred to the federation account for the eight months to August stood at N10 trillion.

According to the document, NNPCL generated N4.3 trillion in revenue from oil, compared to the N4.7 trillion reported the month before.

Natural gas production dropped to 6.3 billion standard cubic feet per day (scf/d) in September, down from 6.94 billion in August, while gas sales fell to 3,443 bscf/d from 4,201.

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The report noted that the petrol availability in its retail stations nationwide was 77 per cent in September, up from 76 per cent in August. It disclosed that while the Obiafu-Obrikom-Oben Gas Pipeline project remained at the same 96 per cent completion level it was in August, the Ajaokuta- Kaduna- Kano pipeline moved up to 88 per cent completion from 84 per cent.

The report added that production levels during the period were temporarily moderated due to planned maintenance activities including those at NLNG alongside the phased recovery of previously shut-in assets and delays in the commencement of operations at OMLs 71 and 72.