THE Nigerian National Petroleum Company Limited (NNPCL) declared N4.57 trillion revenue in June, representing a 23.9 per cent drop from the N6 trillion it reported in May.

It disclosed this in its latest monthly report summary, released on Monday, July 21.

The report showed that profit after tax also declined by 14 per cent to N905 trillion from N1.05 trillion in May.

Despite increased crude oil and condensate production to 1.68 million barrels per day (bpd) from 1.63 million bpd in May, its revenue fell below last month’s record.

A breakdown of the report showed that production peaked at 1.73 million bpd as crude oil output recovered slightly at 1.42 million bpd, while condensate volumes declined to 0.26 million bpd.

A cursory look at the report revealed that crude oil and condensate sales decreased to 21.68 million barrels in June from 24.77 million barrels in May, which likely resulted in the drop in revenue.

The ICIR reports that the prices of crude oil have continued to fluctuate in the international market, which analysts believe are not unconnected with the geopolitical tensions, including the ongoing Russia-Ukraine conflict and unrest in the Middle East, shaping several key economic factors.

On Tuesday, July 22, oil prices declined amid rising concerns that the escalating trade conflict between major crude consumers, the United States (US) and the European Union, could hinder demand growth by stifling economic activity and negatively impacting investor sentiment.

As of 1:00 West Africa Time (WTI) on Tuesday, the Brent crude futures have dropped by 0.98 per cent to $68.53 a barrel, while the US West Texas Intermediate (WTI) crude has dropped by 1.07 per cent to $66.48 a barrel.

A further look at the NNPCL report showed that gas production rose slightly to 7.581 billion standard cubic feet per day, up from 7.352 billion in the previous month, with gas sales rising to 4.742 billion mmscfd (million standard cubic feet per day) in June.

“Ongoing industry-wide collaborations are increasingly improving synergies to achieve production improvement and cost optimisation,” the NNPC stated.

Giving the status of the Port Harcourt, Warri, and Kaduna refineries, which it plans to sell off, the NNPCL said a review of the planned sale was still in progress.