PPMC earns N957bn from petroleum products sales

The Pipelines and Product Marketing Company, PPMC, earned N957 billion from the sales of petroleum products in 12 months, between July 2015 and June 2015, according to data obtained from the Nigerian National Petroleum Corporation, NNPC. The NNPC, in its Monthly Operations and Financial Reports for June 2016, disclosed that the amount was earned from the sales of white products, comprising Premium Motor Spirit, also known as petrol; Automotive Gasoline Oil, AGO, and Dual Purpose Kerosene, DPK. PMS sales accounted for 89.19 per cent of PPMC’s total revenue, with N854.2 billion, while revenue from AGO and DPK sales stood at N41.2 billion and N62.376 billion respectively. In particular, the report stated that the PPMC sold 10.74 billion litres of white products between July 2015 and June 2016, with PMS accounting for 88.79 per cent of total sales with 9.54 billion, while AGO and DPK sales were put at 403.906 million litres and 800.308 million litres respectively. For the month of June, the NNPC report noted, “A total of 860.46 million litres of white product was distributed and sold by PPMC in the month of June 2016 compared with 1.256 billion litres in the month of May 2016. This comprised 761.04 million litres of PMS, 66.31 million litres of kerosene and 33.11 million litres of diesel. “A total value of N101.96 billion was collected as sales revenue for white products sold by PPMC in the month of June 2016 compared with N115.66 billion collected in the previous month of May 2016.” Giving a breakdown of total white products sales for the period under review, the report stated that in the months of July, August, September, October, November and December  2015, the PPMC earned N48.756 billion, N46.288 billion, N44.236 billion, N38.67 billion, N52.853 billion and N66.958 billion respectively. On the other hand, the PPMC earned N80.338 billion, N85.23 billion, N85.66 billion, N79.503 billion, N115.66 billion and N101.96 billion from the sale of white products in January, February, March, April, May and June 2016 respectively. Consequently, the report noted that the PPMC posted a deficit of N3.668 billion in its operations for the first six months of 2016, after recording revenue of N555.078 billion and expenses of N558.745 billion. Commenting on factors responsible for the unimpressive financial performance of the PPMC, the report said, “Incessant vandalism and products theft have continued to destroy value and put NNPC at disadvantaged competitive position. “Reduction in vandalism will indeed unlock several industry upsides which include improved upstream oil production due to reduced pipeline disruptions, improved refinery utilisation due to increased crude oil feed from restored pipelines, and reduction of crude/product losses. “A total of 3,120 vandalised points have been recorded from July 2015 to June 2016. Therefore, crude and products losses have continued to cost NNPC and the nation huge amount of money.” Conversely, the PPMC earned N5.853 billion, from July 2015 to June 2016, from the sales of special products, comprising Low Pour Fuel Oil, LPFO, among others. Specifically, the PPMC earned N3.812 billion from the sale of LPFO, while it earned N2.041 billion from the sales of other special products.