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According to the results of NNPC Retail Limited, a subsidiary of Nigeria’s state oil business, the Nigerian National Petroleum Corporation (NNPC), the company generated more than $200 billion from its 544 stations around the country.

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NNPC Retail Limited, which primarily markets and sells refined petroleum, liquefied petroleum gas, and allied products, was founded in 2002 as a corporate strategic unit of NNPC.

It was formed in 2009 as a limited liability company as a wholly-owned subsidiary of NNPC. In 2020, the company generated 200.3 billion in income from five petroleum products: Petroleum Motor Spirit (PMS), Automotive Gas Oil (AGO), Dual Purpose Kerosene (DPK), Liquified Petroleum Gas (LPG), and Lubricants.

The majority of the revenue was earned from PMS. It accounted for around 79 percent of total income generated, totaling 158.2 billion. The revenue earned by PMS grew by 7.07 percent in comparison to 2019.

AGO was the second-largest contributor, generating roughly $40 billion in 2020. It contributed for around 20% of total revenue. The revenue earned by AGO grew by 9.16 percent in comparison to 2019.

DPK generated 1.3 billion, accounting for 0.65 percent of total sales. DPK generated no income for the company in 2019. LPG generated 558.2 million, accounting for 0.28 percent of total income. This income line increased by 19.29 percent in comparison to 2019.

Lubricants earned the least revenue of any revenue line, accounting for 0.13 percent of total revenue. It earned roughly 255 million dollars. According to the study, NNPC retail did not generate any revenue from lubricants in 2019.
After deducting the cost of sales, the corporation had a gross profit of $17.8 billion. This marks a 15% increase above the $15.5 billion gross profit produced in 2019. Finally, NNPC Retail Limited reported a Profit After Tax (PAT) of 1.48 billion, a 47.33 percent decrease from the 2.82 billion reported in 2019.

This is primarily due to the income tax charged in 2020, which jumped by nearly 139 percent when compared to 2019, from 1.72 billion charged in 2019 to 4.11 billion charged in 2020.

In 2020, overall comprehensive income was negative by $934.8 million, compared to a gain of $2.62 billion in 2019. This was mostly due to a loss on re-measurement of defined benefit commitments of $2.42 billion. This line item was worth 201.6 million in 2019. In 2020, NNPC retail’s earnings per share will be negative 9.35.

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.