NNPCL sustains profit run with N502bn November earnings despite oil output setbacks

The Nigerian National Petroleum Company Limited (NNPCL) recorded a N502bn profit after tax in November 2025, extending its run of strong earnings even as crude oil and condensate production remained below earlier-year levels.

The company generated N4.36tn in revenue during the month, according to its Monthly Financial and Operations Report for November 2025, as improved gas output, trading gains and full pipeline availability helped counter the impact of upstream production disruptions.

Crude oil and condensate production averaged 1.36 million barrels per day (mbpd) in November, up from 1.30mbpd in October, marking a modest recovery after three straight months of decline. However, output remained significantly lower than the 1.77mbpd peak recorded earlier in the year.

NNPCL said the November profit was supported by strong gas performance, sustained infrastructure uptime and improved trading margins, despite ongoing challenges at several crude-producing assets.

Gas performance underpins earnings

Gas production averaged 6,968 million standard cubic feet per day (mmscf/d) in November, broadly flat compared with 6,997mmscf/d in October, underscoring the role of gas in stabilising NNPCL’s operations amid crude-related setbacks.

Gas sales, reported on a two-month lag basis, stood at 4,650mmscf/d in November, slightly lower than October’s 4,713mmscf/d, but well above September’s 3,443mmscf/d following a recovery in output.

The sustained gas performance reflects NNPCL’s strategic focus on gas monetisation as Nigeria seeks to expand domestic supply, boost exports and advance its energy transition agenda.

Oil output recovery remains fragile

Data from the report showed that crude and condensate output rose by about 60,000 barrels per day month-on-month in November, supported by partial recovery at some assets after earlier disruptions.

Despite the rebound, production remained below levels seen in the first half of 2025, when output averaged above 1.40mbpd between January and July. Output declined steadily from 1.38mbpd in August to 1.37mbpd in September and 1.30mbpd in October before stabilising in November.

NNPCL attributed the weaker oil performance to ongoing repairs on the Forcados export pipeline (OML 30), a force majeure at Egbema (OML 61) and delays in achieving first oil from the West African Exploration Project.

Infrastructure and downstream stability

Upstream pipeline availability improved to 100 per cent in November, supporting more stable production and evacuation.

In the downstream sector, PMS availability across NNPC Retail Limited outlets stood at 61 per cent, while the company’s wetness map indicated moderate to high fuel availability nationwide, easing supply pressures that had surfaced earlier in the year.

Rising fiscal contribution

Cumulative statutory payments to the Federation Account reached ₦12.12tn between January and October 2025, reinforcing NNPCL’s growing role in funding government revenues amid ongoing fiscal pressures.

The company also reported steady progress on strategic gas infrastructure projects. The Ajaokuta–Kaduna–Kano (AKK) gas pipeline completed its mainline welding and pressure testing during the month and remains on track for delivery in 2026. Construction activities also advanced on the Obiafu-Obrikom-Oben (OB3) gas pipeline, including completed geotechnical studies at the River Niger crossing.

Outlook for 2026

NNPCL said it is working closely with joint venture and production-sharing contract partners to complete turnaround maintenance and improve asset reliability ahead of 2026.

The company expressed optimism that improved infrastructure availability, expanding gas output and stronger asset uptime will support earnings in the coming year, even as crude oil production continues to face operational and security risks.