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NNPC's earnings dip by 5% – Report

The Nigerian National Petroleum Corporation (NNPC) has reported a loss in its revenue of 4.99

percent in April.

The corporation revealed in its latest monthly financial and operations report that it made N102.45 billion in April as against N107. 83 billion in March.

It also said that the corporation's expenses dropped by 3.82 percent, from N126.72 billion in March to N121.88 billion in April.

According to the report, the drop was as a result of increased pipeline vandalism, which forced its upstream exploration and production subsidiary, the Nigerian Petroleum Development Company (NPDC), to shut in during the month.

NNPC said production disruptions made it lose N20 billion revenue from reduced crude oil export.

“NPDC deficit and low revenue in the month of February to March 2016 and April 2016 was due to production shut–ins, resulting in the loss of entire NPDC’s revenue from crude oil sales of about N20 billion occasioned by vandalism of Forcados crude Export Line,” the report said.

It also blamed its poor performance on losses recorded in the operations of its downstream marketing arm, the Pipelines and Products Marketing Company (PPMC) as a result of the petroleum products scarcity recorded during the month. Being the sole supplier of last resort, the report said PPMC, in its drive to bridge the petroleum products supply gap, suffered huge losses, adding that shortage of petroleum products compelled the company to sometime engage in commercially unfavourable short term arrangements to ensure availability of supply to consumers.

The other major contributor to the loss suffered by the corporation during the month, the report pointed out, was traced to high operation costs in the corporate headquarters, which included expenses related to the on-going restructuring programme at NNPC.

The high operational cost resulted in a deficit of N13.047 billion by the Corporate Headquarters, while Corporate Service Units posted a loss of N1.28 billion.

Details of the financial performance showed that in spite of the shut-ins, NPDC still recorded a profit of N2.25 billion, while the Integrated Data Services Limited subsidiary, posted a loss of N476.06 million.

The National Engineering Technical Company Limited recorded a deficit of N167.41 million and the Nigerian Gas Company posted a profit of N4.54 billion, while the NNPC Retail and the PPMC posted contrasting returns of N718.15 million profits and a loss of N6.905 million respectively.

Other details showed that all the three refineries recorded poor financial performances. Kaduna Refining and Petrochemical recorded loss of N2.28 billion , Port-Harcourt N1.81 billion, and Warri Refining and Petrochemical Companies posting loss of N971.04 million.

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