The Nigerian National Petroleum Corporation, NNPC, has disclosed that it
lost N20 billion in April due to attacks on Forcados Export Line by the
Niger Delta Avengers.
In its Monthly Financial and Operations Report for April released in Abuja
on Wednesday, NNPC said its revenue dipped in April by 4.99 per cent to
N102.45 billion from N107. 83 billion recorded in March.
It states that the corporation’s expenses also dipped by 3.82 per cent to
N121.88 billion compared to N126.72 billion spent in the preceding month.
It attributed the drop to pipeline vandalism which forced one of its
subsidiaries, Nigerian Petroleum Development Company (NPDC), to undertake
a production shut-in, which resulted in the loss of monthly crude oil
revenue of N20 billion.
The report said “NPDC deficit and low revenue in the month of February to
March 2016 and April 2016 was due to production shut–in, resulting to loss
of entire NPDC’s revenue from crude oil sales of about N20 billion
occasioned by vandalism of Forcados Export Line.”
It further blamed the poor performance on losses recorded in the
operations of Pipelines and Products Marketing Company (PPMC) from the
fuel scarcity recorded during the period.
It said PPMC, being the sole supplier of last resort, in its drive to
bridge the petroleum products supply gap, suffered losses.
It said shortage of products compelled PPMC to sometime engage in
commercially unfavourable short term arrangements.
Another major contributor to the loss was high operation costs in the
Corporate Headquarters, which included expenses related to the on-going
restructuring programme at NNPC, the report said.
A breakdown of the financial performance shows that in spite the shut-in,
NPDC recorded a profit of N2.25 billion but Integrated Data Services
Limited posted a loss of N476.06 million.
“National Engineering Technical Company Limited recorded a deficit of
N167.41 million and the Nigerian Gas Company posted a profit of N4.54
billion.
“The NNPC Retail and the PPMC posted profit of N718.15 million and a loss
of N6.905 million respectively,” the report states.
It said that all the three refineries recorded poor financial performances.
It noted that the Kaduna, Port-Harcourt and the Warri Refining and
Petrochemical Companies posted losses of N2.28 billion, N1.81 billion and
N971.04 million respectively.
It further said that the Corporate Headquarters recorded a deficit of
N13.047 billion, while Corporate Service Units posted a loss of N1.28
billion. (NAN)