N196.5bn generated from retail operations in 2012 – NNPC

The Nigerian National Petroleum Corporation has said it generated a sum of N196.5bn from its retail outlets in 2012.

However, the impressive revenue profile was dwarfed by the enormous value of investments made in the establishment of the outlets.

According to the corporation, a total of N192.55bn was spent on the operation of the retail outlets across the country during the year.

The details were contained in the ‘NNPC 2012-2015 strategic plan and 2013 budget,’ presented to the National Assembly recently and awaiting consideration.

Although the corporation had projected a total revenue profile of N188.32bn, it actually realised N196.45bn during the year under review.

In the same vein, while it projected total operational expenses of N168.6bn and a capital expenditure of N6.92bn, it ended up with a total of N187.5bn and   N5.05bn, respectively.

The calculations showed that in weighing the revenue realised from retail outlets against the expenditure, the corporation only boasted a balance of N3.88bn, as shown by its financial performance for the year.

For 2013, the corporation has, however, projected total revenue of N290.81bn, with a corresponding gross expenditure of N278.96bn.

According to NNPC, the increases in the revenue and operational expenses, compared with the earlier projections, are “as a result of the upward review of Premium Motor Spirit pump price.”

It noted that only N5bn performance was achieved in its capital expenditure, which was projected at N6.92bn, due to the fact it did not spend the first quarter allocation because of late passage of the budget.

The corporation also gave details of its sales volume from the retail outlets, noting that a total of 1.97billion litres were sold during the period under review, against the 2.5 billion projected at the beginning of the year.

Giving reasons for the shortfall in retail sales volume, the corporation reported, “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 rationalisation of affiliate stations.”