Results from NNPC Retail Limited, a subsidiary of Nigeria’s state oil corporation, the Nigerian National Petroleum Corporation (NNPC), revealed that the company generated over ₦200 billion from its 544 stations in the country.
NNPC Retail Limited, which is principally engaged in the marketing and sale of refined petroleum, liquified petroleum gas and allied products, was established in 2002 as a corporate strategic unit of NNPC.
It was incorporated as a limited liability company in 2009 as a wholly-owned subsidiary of NNPC. In 2020, the company generated a revenue of ₦200.3 billion which comprised of revenue from 5 petroleum products which are Petroleum Motor Spirit (PMS), Automotive Gas Oil (AGO), Dual Purpose Kerosene (DPK), Liquified Petroleum Gas (LPG) and Lubricants.
PMS accounted for the lion share of the revenue generated. It represented approximately 79% of the total revenue generated to the tune of ₦158.2 billion. Compared to 2019, the revenue generated from PMS increased by 7.07%.
AGO accounted for the second largest as it generated approximately ₦40 billion in 2020. It accounted for approximately 20% of the total revenue. Compared to 2019, the revenue generated from AGO increased by 9.16%.
DPK accounted for 0.65% of the total revenue as it generated ₦1.3 billion. The company did not generate any revenue from DPK in 2019. LPG accounted for 0.28% of the total revenue as it generated ₦558.2 million. Compared to 2019, this revenue line increased by 19.29%.
Lubricants accounted for 0.13% of the total revenue as it generated the least of all the revenue lines. It brought in approximately ₦255 million. NNPC retail did not generate any revenue from lubricants in 2019 according to the report.
After deducting the cost of sale, the company ended up with a gross profit of ₦17.8 billion. This represents a 15% increase from the gross profit of ₦15.5 billion generated in 2019. Ultimately, NNPC retail limited posted a Profit After Tax (PAT) of ₦1.48 billion which when compared to the ₦2.82 billion generated in 2019, represents a 47.33% decline. This is majorly attributable to the income tax charged in the year 2020 which when compared to 2019, increased by approximately 139%, from ₦1.72 billion charged in 2019 to ₦4.11 billion charged in 2020.
The total comprehensive income posted a negative return of ₦934.8 million in 2020 compared to the gain of ₦2.62 billion made in 2019. This was majorly attributable to the loss on re-measurement of defined benefit obligations which stood at ₦2.42 billion. In 2019, this line item stood at ₦201.6 million. This puts NNPC retail’s Earnings Per Share at negative 9.35 in 2020.
The company owns 544 filling stations as of 2020 and comparing that to the 555 it owned in 2019, the company has reduced its number of filing stations by 11 or approximately 2%. From the data provided, the 544 filing stations comprises 465 affiliates, 37 mega stations, 6 standard stations, 21 leased stations, 3 ultra-modern stations and 12 floating mega stations. Compared to 2019, NNPC reduced its affiliates stations by 16 from 481 affiliates, representing a 3.32% decline, increased its standard stations by 2 from 4 standard stations, representing a 50% increase and increased its leased stations by 3 from 18 leased stations, representing a 16.67% increase.
What you should know
The Nigerian National Petroleum Corporation (NNPC) group posted a profit after tax of ₦287.23 billion in 2020, representing a significant growth compared to a loss of ₦1.76 billion recorded in the previous year. According to the result, NNPC recorded profit growth despite a 20% decline in its revenue for the year.
Specifically, its revenue declined from ₦4.63 trillion recorded in 2019 to ₦3.72 trillion in 2020. This could be attributed to the downturn caused by the covid-19 pandemic, which affected global crude oil prices.
A breakdown of the revenue from customers shows that a total of ₦2.28 trillion was made from the sales of petroleum products, accounting for 61.2% of the recorded revenue. NNPC generated ₦828.13 billion from the sales of crude oil, representing 22.3% of the total revenue.
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