NNPC Records N267bn Operating Deficit In 2015 | Independent Newspapers Limited
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NNPC Records N267bn Operating Deficit In 2015

Posted: Mar 1, 2016 at 5:19 am   /   by   /   comments (0)

Oladunjoye Phillip, Lagos

The Nigerian National Petroleum Corporation (NNPC) financial and operation report for the month of December, released recently, shows it recorded a group operating deficit of N267 billion (US$1.36 billion) for 2015 compared to the budget for the year of a surplus of N469 billion.

This is a consequence of the exploits of pipeline vandals, it said.

The corporation noted in the report that the deficit of 61% was attributable to claimable pipeline repairs, putting the figure at N104 billion, while the losses due to vandalism was N60 billion.

The corporation said that the three refining companies recorded joint deficit of N82 billion against the budgeted surplus of N30 billion, while the Pipelines and Products Marketing Company (PPMC) also recorded a deficit of N62 billion after subsidies and surplus of N136 billion were deducted.

Apart from these, the corporation said that the deficit for the year from central headquarters amounted to N182 billion as against the budget of N215 billion.

Independent learnt that in the corporation’s operating summary report for the month of December, the corporation lost N11.86 billion in December, 2015, a loss less than N14.29 billion deficit it recorded in November.

Analysis of the figures revealed that NNPC earned gross revenue of N2.07 trillion while it recorded expenses of N2.31 trillion during the period.

It said that NNPC’s headquarters recorded the highest deficit, with a loss of N162.74 billion.

According to the corporation, its Corporate Service Unit posted a deficit of N18.8 billion, while the three refineries posted a combined loss of N82.09 billion during the period.

“The Kaduna Refinery and Petrochemical Company (KRPC) recorded a loss of N34.7 billion in the year under review, while Warri Refinery and Petrochemical Company (WRPC) and Port Harcourt Refining Company posted losses of N24.31 billion and N23.09 billion, respectively,” it said.

The report also noted that Pipelines and Product Marketing Company (PPMC), one of NNPC’s subsidiaries, lost N62.06 billion, while the National Engineering Technical Company (NETCO) lost N744 million.

NNPC, however, stated that Nigerian Petroleum Development Company (NPDC) and the Nigerian Gas Company (NGC) recorded profits of N16.91 billion and N34.9 billion, respectively, adding that Integrated Data Services Limited (IDSL) and NNPC Retail recorded profits of N2.43 billion and N5.05 billion, respectively.

“For the month of December, the NNPC recorded a revenue of N184.40 billion, representing an appreciation of 18.9 percent from N155.10 billion recorded in the month of November.

“Expenses also grew by 15.9 percent to N196.26 billion compared to N169.40 billion recorded in November,” it said.

The report also noted that NNPC paid N1.09 trillion to the Federation Account Allocation Committee (FAAC) from January to December, 2015, adding that NNPC lifted 245 million barrels of crude oil on behalf of the Federal Government, out of a total of 706 million barrels of crude oil fiscalised between January and November, 2015.

According to the report, the corporation also declared that a total of 254 billion cubic feet of gas was sent to power stations across the country during the period, which it said was with an average power generating capacity of 2,957 megawatts of electricity from gas-fired power plants.

The report added that a total of 7.5 billion litres of Premium Motor Spirit, also known as petrol, was supplied to the country by the NNPC and the PPMC in 2015.