NNPC Profit Falls Sharply from N905bn to N185bn in July
The Nigerian National Petroleum Company Limited (NNPC) has reported a sharp fall in its profit after tax, dropping from N905bn in June to N185bn in July. This means the company’s profit went down by about 79.6%, showing one of its steepest monthly declines this year.
According to its latest monthly report released on Thursday, NNPC recorded a revenue of N4.41tn in July, compared to N4.57tn in June. Despite the revenue drop, oil production went up slightly from 1.68 million barrels per day in June to 1.7 million barrels per day in July. Natural gas production also grew to 7.7 billion cubic feet, from 7.58 bcf in the previous month.
Earlier figures show that NNPC’s profit in June stood at N905bn, lower than N1.05tn recorded in May and N926bn in April. This means July’s N185bn is the weakest monthly profit in the last four months.
The company noted that statutory payments from January to June reached N7.97tn. At the same time, it highlighted progress in its gas pipeline projects. The Ajaokuta-Kaduna-Kano (AKK) pipeline project is now 96% complete, while the Obiafu-Obrikom-Oben (OB3) project has reached 83%.
NNPC also said it is working on improving oil and condensate production, keeping production facilities running smoothly, and strengthening cooperation with stakeholders. To speed up delivery of the AKK project, additional subcontractors have been deployed.
For the OB3 pipeline, a new execution strategy has been introduced to fast-track the River Niger Crossing. Already, a 113 km section of the pipeline has been commissioned and is supplying about 300 million standard cubic feet per day of gas from producers like AHL (250 mmscf/d), Platform, Chorus, and Xenergi (50 mmscf/d combined).
The report shows that while NNPC is facing challenges in profit margins, it continues to focus on infrastructure development and long-term energy projects to strengthen its operations.
