Results from NNPC Retail Limited, a subsidiary of Nigeria’s state-owned oil company, Nigerian National Petroleum Corporation (NNPC), revealed that the company generated more than 200 billion naira from its 544 stations in the country. .
NNPC Retail Limited, which is mainly engaged in the marketing and sale of refined petroleum, liquefied petroleum gas and related products, was established in 2002 as a strategic unit of NNPC. It was incorporated as a limited liability company in 2009 as a 100% subsidiary of NNPC.
In 2020, the company generated revenue of 200.3 billion naira which included revenue from 5 petroleum products which are petroleum motor gasoline (PMS), automotive diesel fuel (AGO), kerosene to Dual Purpose (DPK), Liquefied Petroleum Gas (LPG) and Lubricants.
PMS accounted for the lion’s share of the revenue generated. It accounted for about 79% of the total revenue generated to the tune of 158.2 billion naira. Compared to 2019, the revenue generated by the PMS increased by 7.07%.
AGO was the second largest as it generated around 40 billion naira in 2020. It accounted for around 20% of total revenue. Compared to 2019, the revenue generated by AGO increased by 9.16%.
DPK accounted for 0.65% of total revenue as it generated 1.3 billion naira. The company did not generate any income from DPK in 2019.
LPG accounted for 0.28% of total revenue as it generated 558.2 million naira. Compared to 2019, this revenue line increased by 19.29%.
Lubricants accounted for 0.13% of total revenue as they generated the least of all revenue lines. It brought in around 255 million naira. Retailing of NNPC did not generate any revenue from lubricants in 2019, according to the report.
After deducting cost of sale, the company ended up with gross profit of N17.8 billion. This is an increase of 15% from the gross profit of NN15.5 billion generated in 2019. In the end, NNPC retail limited posted an after-tax profit (PAT) of NN 1.48 billion which, per compared to the 2.82 billion naira generated in 2019, represents a decrease of 47.33%. This is mainly attributable to the income tax charged in the year 2020 which, compared to 2019, increased by around 139%, from N 1.72 billion in 2019 to N 4.11 billion. N in 2020.
Total comprehensive income showed a negative return of N 934.8 million in 2020 compared to the gain of N 2.62 billion in 2019. This was mainly due to the loss on the revaluation of defined benefit obligations which amounted to 2.42 billion N.. In 2019, this item stood at 201.6 million naira. This puts NNPC Retail’s earnings per share at minus 9.35 in 2020.
The company has 544 gas stations in 2020 and comparing that to the 555 it owned in 2019, the company has reduced its number of gas stations by 11 or about 2%. Based on the data provided, the 544 drop stations include 465 affiliates, 37 mega stations, 6 standard stations, 21 leased stations, 3 state-of-the-art stations and 12 floating mega stations.
Compared to 2019, the NNPC reduced its affiliate stations from 16 to 481 affiliates, a decrease of 3.32%, increased its standard stations by 2 from 4 standard stations, which represents an increase of 50% and increased its leased stations by 3 from 18 leased stations, which represents an increase of 16.67%.
What you should know
The Nigerian National Petroleum Corporation (NNPC) group reported an after-tax profit of 287.23 billion naira in 2020, which is significant growth from a loss of 1.76 billion naira recorded the previous year.
According to the result, NNPC recorded profit growth despite a 20% drop in revenue for the year. More specifically, its income fell from 4.63 billion naira recorded in 2019 to 3.72 billion naira in 2020. This could be attributed to the slowdown caused by the covid-19 pandemic, which has affected global oil prices. raw.
A breakdown of customer revenues shows that a total of 2.28 trillion naira was made from sales of petroleum products, accounting for 61.2% of recorded revenues. NNPC generated 828.13 billion naira from sales of crude oil, which represents 22.3% of total revenues.