NNPC records N276bn profit amid highest gas output in one year

Nigerian National Petroleum Company Limited recorded a profit after tax of N276bn in March 2026, more than doubling its February earnings, as stronger gas production and improved operational efficiency lifted performance despite ongoing pipeline disruptions.

According to the company’s latest monthly report released on Monday, revenue rose to N2.77tn in March, marking a 3.51 per cent increase from February. Crude oil and condensate production stood at 1.56 million barrels per day.

Gas output was the standout performer, climbing to 7,731 million standard cubic feet per day, the highest level recorded in the past 12 months.

“This edition records month-on-month growth across key production metrics, with crude oil and condensate output rising to 1.56 mmbopd and gas production climbing to 7,731 mmscf/d,” the report stated.

Further analysis showed crude production remained unchanged from February but improved from 1.51 million barrels per day recorded in January. Gas production, however, recorded steady growth throughout the first quarter, rising from 7,281 mmscf/d in January to 7,458 mmscf/d in February before reaching its March peak.

NNPC attributed the improved output to enhanced operational efficiency, particularly at offshore facilities. It noted that early completion of maintenance work on the OML 118 Bonga asset, delivered 12 days ahead of schedule, contributed to the gains.

Despite this progress, the company acknowledged that pipeline disruptions weighed on production. It cited the outage on the Trans Forcados Pipeline due to a leak at the Keremor axis, which led to production curtailments across several assets between February 20 and March 25.

The company said it is implementing recovery measures aimed at stabilising output, including improving asset reliability and addressing evacuation constraints.

Crude oil sales dropped significantly to 17.37 million barrels in March, down from 22.85 million barrels in February and 25.75 million barrels in January, reflecting persistent logistics and evacuation challenges.

In contrast, gas sales rose to 5,059 mmscf/d, underscoring the growing importance of gas in Nigeria’s energy mix. The report highlighted that March gas production was the highest recorded within the 12-month period under review.

Financially, profit after tax surged by about 102.94 per cent month-on-month, reinforcing the company’s improved earnings position.

Cumulatively, statutory remittances to the federation reached N2.89tn between January and March 2026.

On infrastructure development, NNPC reported progress on key gas projects, including the Ajaokuta-Kaduna-Kano Gas Pipeline, where welding of the 24-inch spur line to the Gwagwalada Independent Power Plant has been completed alongside ongoing pre-commissioning works. Drilling also continued on the Obiafu-Obrikom-Oben Gas Pipeline River Niger crossing.

However, downstream performance remained weak, with petrol availability at NNPC retail outlets estimated at 56 per cent nationwide.

The company noted that all figures remain provisional and subject to reconciliation.

Overall, the March results reflect a gradual recovery in Nigeria’s oil and gas sector, driven largely by rising gas output and improved asset management, although infrastructure gaps and supply chain constraints continue to pose risks to sustained growth.