NNPC earns N196.5 billion from retail operations in 2012

The Nigerian National Petroleum Corporation (NNPC) has released its recent report on its retail operations for the year 2012, revealing a profit level of about N196.5 billion for the corporation.

This was stated at the 2012-2015 NNPC strategic plan and 2013 budget presentation to the National Assembly for approval. It also revealed a remarkable improvement in the operational strategy of the Corporation, which in the past years have looked more like a liability than an asset.

The profit level from the capital expenditure was about N3.88 billion, as the NNPC spent N192.55 billion on the operations of its retail outlets across the country.

On the issue of the shortfall in retails sales volume, which was 1.97 billion litres as against the 2.5 billion litres projected at the beginning of the year, the NNPC said “Sales volume planned was based on three additional mega stations and five standard stations, which are yet to be completed. Only six out of the 12 floating stations are operational. Reduced sales volume in 2012 was as a result of rationalization of affiliate stations.”

In the area of capital expenditure, it reported that N5 billion was realized last year, but blamed it on the inability to spend the allocation for the first quarter due to the late passage of the 2012 budget.

For its outlook and projections for year 2013, the NNPC set the target of N290.81billion with a corresponding gross expenditure of N278.96 billion.

The NNPC also attributed the increase in the retail sales revenue and the rise in operational expectancy to the increase in the price regime of the Premium Motor Spirit’s (PMS) pump price.