NNPC sustains losses, records N39.3bn deficit in four months
The monthly financial losses of the Nigerian National Petroleum Corporation since the beginning of this year continued in the month of April.
Figures from the firm’s latest oil and gas report showed that the NNPC Group lost a total of N39.3bn between January and April 2017.
The corporation’s deficit, which stood at N33.99bn in March 2017, increased by N5.3bn to close at N39.3bn in April.
Its group financial report by entity, however, showed that the NNPC reduced its losses from the N5.62bn recorded in March to N5.3bn in April.
The Nigerian Pipelines Marketing Company, a subsidiary of the NNPC, and the oil firm’s corporate headquarters posted the biggest losses since the beginning of the year, losing N50.99bn and N47.16bn, respectively.
Some other subsidiaries of the NNPC posted profits during the review period, a development that helped in reducing the group’s consolidated year-to-date loss.
An analysis of the report showed that the N15.2bn profit made by the Port Harcourt Refining Company lifted the refineries’ subsidiary out of a loss position.
The Kaduna Refining and Petrochemical Company and the Warri Refining and Petrochemical Company posted losses of N3.6bn and N3.7bn, respectively during the period under review.
Further analysis showed that the combined capacity utilisation of the three refineries was still below 30 per cent, although it moved up from 13.46 per cent in March to 24.59 per cent in April.
On the individual capacity utilisation of the refineries in April, the report stated that the WRPC, PHRC and KRPC recorded 9.92, 29.81 and 30.3 per cent, respectively.
Speaking on how to address the persistent losses, the Group Managing Director, NNPC, Dr. Maikanti Baru, earlier in the year announced the introduction and implementation of the 12 business focus area, which he noted would institutionalise efficiency, profitability and growth.
According to him, some of the components of the 12 BUFA include ensuring security of the NNPC assets, developing new business models that would grant autonomy to the various units of the corporation and settling Joint Venture cash calls.
Baru directed the chief operating officers of the corporation’s various departments and subsidiaries to immediately commence the implementation of the policy framework and asked them revert to the management, should there be any grey area that required further intervention.Punch