NNPC profit falls 35% despite rising oil output, revenue recovery

The Nigerian National Petroleum Company (NNPC) Limited recorded a 35.4 per cent decline in profit after tax to N2.28 trillion in the first half of 2026, despite higher crude oil production and stronger revenue performance, according to the company’s monthly financial performance data reviewed by Nairametrics.

The state-owned energy company earned N3.53 trillion during the corresponding period of 2025, leaving first-half 2026 earnings lower by approximately N1.25 trillion year-on-year.

Despite the decline, NNPC remained profitable throughout the six months, with earnings strengthening steadily from March and reaching a year-high of N535 billion in June.

The company posted a profit of N385 billion in January before earnings dropped sharply to N136 billion in February, the weakest monthly performance in the period under review.

Profit subsequently recovered to N276 billion in March, rose further to N481 billion in April, eased slightly to N462 billion in May and climbed to N535 billion in June, bringing cumulative first-half profit to N2.28 trillion.

The performance contrasted sharply with the exceptionally strong first-half earnings recorded in 2025, when NNPC rebounded from a N161 billion loss in January to post N987 billion profit in February. Although the company reported another N7 billion loss in March 2025, it returned strongly with profits of N748 billion in April, N1.054 trillion in May and N904 billion in June.

Revenue improved significantly during the first half of 2026, supported by stronger crude oil production. NNPC generated N2.571 trillion in revenue in January with crude oil and condensate production averaging 1.64 million barrels per day.

Revenue increased to N2.680 trillion in February despite production declining to 1.51 million barrels per day, before rising to N2.774 trillion in March as output recovered to 1.56 million barrels per day.

The company recorded its strongest monthly revenue of N4.971 trillion in April as production rose to 1.68 million barrels per day. Revenue stood at N4.335 trillion in May when production reached 1.73 million barrels per day, the highest level recorded during the first half, before increasing slightly to N4.389 trillion in June with production averaging 1.72 million barrels per day.

The stronger operational performance coincided with heightened volatility in the international oil market, where Brent crude prices surged above $100 per barrel during Middle East supply disruptions before retreating as supply concerns eased.

The figures indicate that while higher production supported revenue growth, profitability remained below the exceptionally high levels recorded in the previous year, suggesting that market conditions and operational costs continued to weigh on earnings.

NNPC also remitted N6.286 trillion to the Federation Account between January and June 2026, compared with N8.162 trillion during the corresponding period of 2025, representing a decline in statutory payments to the government.

The company had earlier remitted N14.706 trillion to the Federation Account during the full 2025 financial year.

The earnings report comes as Nigeria continues to improve crude oil production after years of underperformance caused by crude theft, pipeline vandalism, underinvestment and operational disruptions. The country recorded average crude oil production of 1.56 million barrels per day in June 2026, its highest monthly output since April 2020 and the second consecutive month production exceeded Nigeria’s OPEC quota.