NNPC’s gas subsidiary posts ₦12bn profit, low revenue

The Nigerian National Petroleum Corporation (NNPC) yesterday, said its subsidiary, the Nigerian Gas Marketing Company (NGMC) posted a profit after tax of N12.476 billion for the year ended, December 31, 2018.

In a statement issued after the Annual General Meeting of the NGMC in Abuja, NNPC described the company’s performance as impressive, considering the challenges NGMC faced in its operations, notably arising from pipeline vandalism.

The petroleum corporation noted that the company’s total revenue for the year 2018 was N243.63 billion compared to N275.162 billion for 2017.

The decline in revenue, NNPC said, was attributed to the move by the electric power generating companies to purchase gas directly from gas producers since June 2018.

It added that NGMC is mainly engaged in sourcing, marketing and distribution of natural gas to major industrial users and utility companies in Nigeria and the West Africa sub-region.

Speaking the meeting, Group Managing Director of the NNPC, Maikanti Baru, who is also the Chairman of the Board of Directors of NGMC, maintained that the company would do everything to sustain the impressive performance.

Baru, who was represented by Chief Operating Officer (COO) Gas and Power of the NNPC, Seidu Mohammed, stated that NGMC had already signed contracts with some companies in the Republic of Benin.

He said, “We have to expand our portfolio, we are going into the West African market to position ourselves as the best marketer of gas in the sub region.”

On his part, Managing Director of NGMC, Mohammad Barau, attributed the company’s impressive performance to the support given to it by the NNPC management which helped to resolve some of its challenges and motivated the company to embark on an aggressive drive for customers, resulting in increased earnings.