By Adedapo Adesanya
Pipeline and Products Marketing Company (PPMC), one of the downstream subsidiaries of the Nigerian National Petroleum Company (NNPC) Limited, recorded total revenue of N1.380 trillion in 2021, rising by 4,862.6 per cent compared with N27.808 billion in 2020.
The PPMC, in its latest audited financial statement for 2021, stated that Premium Motor Spirit (PMS), also known as petrol, and other white petroleum products in 2021 stood at N1.355 trillion.
This accounted for 99.85 per cent of total revenue from the sale of white products, also accounting for 98.19 per cent of its total revenue.
In addition to the sale of PMS, the PPMC said it earned N1.641 billion from the sale of Automotive Gas Oil (AGO) and N323.536 million from the sale of Liquefied Petroleum Gas (LPG), also known as cooking gas.
The PPMC further stated that it earned N996.595 billion from trading with coastal marketers in the 2021 fiscal year, while trading with major oil marketers and independent oil marketers fetched the PPMC revenue of N224.559 billion and N135.382 billion, respectively.
The PPMC also earned N21.108 billion as a commission on the sale of petroleum products, while the commission from the collection of the Petroleum Equalization Fund bridging allowance stood at N2.768 billion.
It added that: “On 30 June 2021, the Company ceased to supply and market petroleum products to marketers/retailers on behalf of its parent company, NNPC. On 1 July 2021, the company began to supply and market these products directly to marketers.
“The company ceased to sell Liquified Petroleum Gas during the year as the Ex-LPG Sales Agreement with Nigeria Liquefied Natural Gas (NLNG) Limited was novated to the related party, NNPC Retail Limited.”
However, the PPMC cost of sale stood at N1.332 trillion in 2021, compared with N5.639 billion recorded in 2020.
Giving a breakdown of the cost of sale component in 2021, the PPMC stated that security services gulped N3.298 billion, compared with N1.865 billion in 2020; Personnel expenses grew to N4.988 billion, from N2.577 billion in 2020; while payment for finished refined white products stood at N1.299 trillion.
In addition, the PPMC said it spent N11.393 billion on water transport hire; N270.831 million on the purchase of LPG; N1.118 billion on transportation of petroleum products; N7.481 billion on throughput charges, and N4.13 billion on tariff charges.
Also, the downstream firm said decanting transport expenses stood at N12.417 million; write-off of inventory stood at N91.749 million, while other selling expenses dropped to N28.963 million from N53.801 million recorded in 2020.