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NNPC’s profit after tax fell by N256bn in July, reversing much of the earnings growth recorded between March and June.
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Revenue dropped 29.7 percent to N3.09tn as crude and condensate sales fell by more than 20 percent during the month.
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The company blamed operational disruptions, equipment issues and pipeline incidents for weaker crude production in July.
September 02, (THEWILL) — The Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a profit after tax of N279 billion in July 2026, down 47.9 percent from the N535 billion reported in June. The figure was contained in the company’s Monthly Report Summary for July 2026 and represents a N256 billion drop in monthly profit.
July’s profit was N279 billion, making it NNPC’s lowest monthly profit since March, when the company recorded N276 billion.
The decline reversed much of the strong earnings improvement recorded between March and June, when monthly profit rose from N276 billion to N481 billion in April, N462 billion in May and N535 billion in June.
June’s figure had been NNPC’s highest monthly profit since August 2025.
Revenue falls as crude sales decline
NNPC’s revenue also fell sharply in July to N3.087 trillion from N4.39 trillion in June, a 29.7 percent month-on-month decline.
The weaker financial performance coincided with declines in crude oil and gas production and lower sales volumes.
Crude oil and condensate production averaged 1.68 million barrels per day in July, down from 1.72 million barrels per day in June, representing a decline of about 2.3 percent.
Natural gas production also fell to 7,489 million standard cubic feet per day from 7,841 million standard cubic feet per day, a decline of about 4.5 percent.
NNPC attributed the decline in crude production to operational challenges across several assets.
“July crude oil production was affected by a combination of operational disruptions across several assets, including facility outages, equipment unavailability, pipeline incidents, and production constraints,” the company said.
Crude, gas sales weaken
The production decline was accompanied by a sharper fall in sales.
Crude oil and condensate sales dropped to 22.53 million barrels in July from 28.23 million barrels in June, representing a 20.2 percent decline.
Gas sales also fell to 4,581 million standard cubic feet per day from 4,970 million standard cubic feet per day.
Despite the weaker earnings, NNPC’s statutory payments to the Federation increased.
Cumulative statutory payments between January and July reached N7.913 trillion, compared with N6.286 trillion recorded between January and June. This represents an additional N1.627 trillion paid during July.
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NNPC plans production recovery
The company said it would focus on sustaining high facility uptime through preventive maintenance programmes and minimising unplanned downtime.
It also identified measures including optimising export operations at FEPL and Nembe EP, delivering incremental production opportunities, restoring barging operations at Obodo and activating tandem offloading operations at Akpo and Erha.
NNPC’s profit has fluctuated considerably over the past year. PAT fell 79.6 per cent to N185 billion in July 2025 before rebounding to N539 billion in August. It subsequently declined to N216 billion in September, then recovered through October to June.
The latest July figure remains N143 billion above the N136 billion recorded in February 2026, the company’s lowest monthly profit this year.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
