Higher sales push NNPC profit to N535 billion even as crude production drops

Nigerian National Petroleum Company Limited recorded a profit after tax of N535 billion in June 2026, representing a 15.8 per cent increase from the N462 billion reported in May, despite a marginal decline in crude oil and condensate production.

NNPC disclosed the figures in its latest Monthly Financial and Operations Report, which showed that the national oil company generated N4.389 trillion in revenue during the month.

The company also said its cumulative statutory payments to the Federation reached N6.286 trillion between January and June 2026, highlighting its contribution to government revenue at a time when federal, state and local governments remain heavily dependent on oil earnings.

“NNPC Limited recorded N535bn profit after tax for the month of June, representing a 15.8 per cent increase from the N462bn recorded in May,” the report stated.

Average crude oil and condensate production, however, declined slightly from 1.73 million barrels per day in May to 1.72 million barrels per day in June — a month-on-month decrease of 0.58 per cent.

June’s production level was nevertheless 1.18 per cent higher than the 1.70 million barrels per day recorded in the corresponding period of 2025.

NNPC attributed the monthly decline to operational disruptions, facility integrity problems and subsurface challenges across several oil assets. It said the impact was partly offset by increased production following the completion of turnaround maintenance on the Assa-Rumuekpe pipeline and the 28-inch Trans-Niger Pipeline.

Despite the production decline, crude oil and condensate sales rose sharply by 48.97 per cent, climbing from 18.95 million barrels in May to 28.23 million barrels in June. The sales volume was also 6.77 per cent higher than the 26.44 million barrels sold in June 2025.

Gas production increased from 7.774 billion standard cubic feet per day in May to 7.841 billion standard cubic feet per day in June. Gas sales similarly rose from 4.921 billion standard cubic feet per day to 4.970 billion standard cubic feet per day.

The report also recorded progress on two major gas infrastructure projects expected to support electricity generation, industrial production and the expansion of compressed natural gas transportation.

The Obiafu-Obrikom-Oben Gas Pipeline reached 98 per cent completion, with final tie-in work ongoing ahead of the planned delivery of first gas in August 2026.

Construction and installation work on the Ajaokuta-Kaduna-Kano Gas Pipeline also advanced to 94 per cent, supporting NNPC’s target of delivering gas to Abuja before the end of 2026.

NNPC said it would continue efforts to increase production by improving facility reliability, reducing unscheduled downtime, optimising crude export operations and accelerating new production opportunities.

Upstream pipeline availability remained at 100 per cent during the month, while petrol availability across NNPC Retail Limited filling stations stood at only 53 per cent.

The company cautioned that its production, sales and financial figures were provisional and remained subject to reconciliation with relevant stakeholders.

SOURCE: NEWSSCROLL