The Nigerian National Petroleum Company Limited (NNPCL) recorded a sharp decline in profitability in July 2026, with profit after tax (PAT) falling to N279 billion from N535 billion in June, amid lower revenue and declines in crude oil and natural gas production.
The latest figure represents a 47.9 per cent month-on-month drop in profit and marks one of its NNPC lowest monthly profit since March, when the company posted N276 billion.
Data contained in the company’s Monthly Report Summary for July 2026 showed that revenue also fell from N4.389 trillion in June to N3.087 trillion in July, a decline of about 29.7 per cent.
The July performance reversed part of the strong improvement recorded in the preceding months.
The weaker July financial performance coincided with lower hydrocarbon production and sales.
According to the report, crude oil and condensate production averaged 1.68 million barrels per day (mbopd) in July, compared with 1.72 million barrels per day in June, representing a decline of about 2.3 per cent.
Natural gas production also declined to 7,489 million standard cubic feet per day (mmscfd) in July from 7,841 mmscfd in June, a drop of about 4.5 per cent.
NNPC attributed the reduction in crude oil production to operational disruptions across several assets, including facility outages, equipment unavailability, pipeline incidents and other production constraints.
Crude oil and condensate sales also declined significantly, falling to 22.53 million barrels in July from 28.23 million barrels in June, representing a drop of about 20.2 per cent. Gas sales declined to 4,581 mmscfd from 4,970 mmscfd over the same period.
Despite the decline in production and earnings, NNPC reported an increase in statutory payments to the Federation Account.
Cumulative statutory payments for January to July 2026 reached N7.913 trillion, compared with N6.286 trillion recorded between January and June. This represents an additional N1.627 trillion in statutory payments during July.
The company also sustained 100 per cent upstream pipeline availability for the second consecutive month.
NNPC said its production improvement efforts would focus on sustaining high facility uptime through preventive maintenance programmes and reducing unplanned downtime.
The company also listed measures including the optimisation of export operations at FEPL and Nembe EP, delivery of incremental production opportunities across its portfolio, restoration of barging operations at Obodo and activation of tandem offloading operations at Akpo and Erha.
The post NNPC profit drops as revenue slips by 29.6% in July appeared first on Vanguard News.