NNPC’s Losses Increase By 1,556% In One Month

The Nigerian National Petroleum Corporation (NNPC) has announced the latest figures of its group financial and operations losses, stating that it has increased by 1,556.1 per cent from October to November 2017.

Findings showed that the corporation’s losses had dropped from N2.81bn in September 2017 to N400m in October. But this could not be sustained as the oil firm’s deficit rose to a high of N6.79bn in November last year.

In its November 2017 report, the NNPC stated that the drop in performance was due to reduced revenue in the downstream value chain as well as the shutdown of two of its refineries.

According to the corporation, the refineries are the Kaduna Refining and Petrochemical Company and the Port Harcourt Refining Company.

The oil firm said, “The November 2017 report indicated a trading deficit of N6.79bn, which is comparatively higher than the previous month’s deficit of N0.41bn. This represents N6.39bn increase in trading deficit compared to the October 2017 performance.

“The drop in the performance is attributable to the increased cost in upstream activities as well as the reduced revenue in the downstream value chain occasioned by high crude oil inventory in refineries due to unplanned operational shutdown of the KRPC and the PHRC, which led to increased losses from the refineries in November 2017.”

A further analysis of the report showed that for November 2017, Nigeria’s three refineries produced 55,187 metric tonnes of finished petroleum products and 39,562MT of intermediate products out of 107,748MT of crude processed at a combined capacity utilisation of 5.92 per cent, compared to 17.63 per cent combined capacity utilisation achieved in October 2017.

The post NNPC’s Losses Increase By 1,556% In One Month appeared first on 360Nobs.com.