NNPC posts N2.27tn half-year profit amid oil price rally

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The Nigerian National Petroleum Company Limited recorded a cumulative N2.275tn profit after tax in the first six months of 2026, with higher international crude oil prices triggered by geopolitical tensions in the Middle East helping to bolster the national oil company’s earnings during the period.

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An analysis of the company’s monthly financial and operational reports by our correspondent on Sunday showed that the six-month performance came amid heightened volatility in the global oil market.

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Crude prices climbed sharply during the first half of the year, particularly in June, after the military confrontation between the United States and Iran raised fears of supply disruptions through the Strait of Hormuz, one of the world’s most strategic oil shipping routes.

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For Nigeria, whose economy and public finances remain heavily dependent on crude oil exports, the higher oil prices translated into stronger revenue inflows for the state-owned oil company despite fluctuations in monthly profitability and production.

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The company also rebounded strongly from a decline recorded in May, posting a profit after tax of N535bn in June 2026. The June performance represents a 15.8 per cent increase from the N462bn recorded in May, translating into an additional N73bn in profit within one month.

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The latest figure is also the highest monthly profit reported by the national oil company since January 2026, underscoring a recovery in earnings after a volatile first half of the year.

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An analysis of the NNPC monthly reports showed that the company generated a cumulative N2.275tn in profit after tax between January and June 2026. The figures indicate that profitability fluctuated sharply throughout the six-month period, reflecting changing operational and market conditions in Nigeria’s oil and gas industry.

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The year began on a strong note with a profit after tax of N385bn in January. However, earnings plunged to N136bn in February, representing a decline of N249bn, or 64.7 per cent, from the previous month.

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The company recovered in March, with profit rising to N276bn, an increase of N140bn, or 102.9 per cent, compared to February. Although the rebound more than doubled February’s earnings, profit remained below the January level.

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The recovery gathered momentum in April, when profit climbed to N481bn. This represented a month-on-month increase of N205bn, or 74.3 per cent, making April the strongest-performing month at the time.

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Momentum slowed in May as profit slipped from N481bn to N462bn, a decline of N19bn, or 3.9 per cent. The drop marked the first monthly decline after two consecutive months of earnings growth.

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However, the company returned to growth in June, recording a profit after tax of N535bn. Compared to May, profit increased by N73bn, representing a 15.8 per cent month-on-month rise and setting a new six-month high.

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The analysis shows that while NNPC’s earnings remained volatile during the first half of the year, the company ended the period on a stronger footing, with June delivering its highest monthly profit after tax in 2026.

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The monthly reports, which the company began publishing in April 2025 as part of its commitment to greater transparency and accountability, provide regular updates on NNPC’s operational and financial performance.

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The reports have become a key benchmark for tracking the financial health of the national oil company, although year-on-year comparisons remain limited because monthly financial disclosures only commenced in April 2025.

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In its June filings, the company said it remitted cumulative statutory payments of N6.286tn to the Federation between January and June 2026.

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It read, “NNPC Limited recorded N535bn profit after tax for the month of June, representing a 15.8 per cent increase from the N462bn recorded in May. Total revenue for the month stood at N4.389tn, while cumulative statutory payments to the Federation for the period January to June 2026 increased to N6.286tn, underscoring NNPC Limited’s sustained contribution to national revenue generation.”

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Average crude oil and condensate production declined marginally to 1.72 million barrels per day in June from 1.73 million barrels per day in May, representing a 0.58 per cent decrease. However, output was 1.18 per cent higher than the 1.70 million barrels per day recorded in June 2025.

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According to the report, production was affected by operational disruptions, facility integrity issues, and subsurface challenges across several assets.

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It stated, “June production performance was impacted by operational disruptions, facility integrity issues, and subsurface challenges across several assets. However, performance was partially mitigated by production ramp-up following the completion of the Assa-Rumuekpe and 28-inch TNP Turnaround Maintenance.”

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Despite the slight production decline, crude oil and condensate sales surged to 28.23 million barrels in June from 18.95 million barrels in May, representing a 48.97 per cent month-on-month increase. The June sales volume was also 6.77 per cent higher than the 26.44 million barrels sold in June 2025.

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Gas production also improved, rising to 7,841 million standard cubic feet per day from 7,774 million standard cubic feet per day in May, while gas sales recovered to 4,970 million standard cubic feet per day from 4,921 million standard cubic feet per day.

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