The Nigerian National Petroleum Corporation, NNPC, has announced a loss of N378.49 billion in its operations for the first eight months of the year.

Ibe KachikwuOne of NNPC’s subsidiaries, the Products and Pipeline Marketing Company Limited, PPMC, accounted for majority of the losses, as it spent over N300 billion on subsidy and in the repairs and management of its pipelines between January and August.

In the figures presented by NNPC’s Monthly Financial and Operations Report for August, obtained over the weekend, NNPC posted a loss of N60.669 billion and N51.714 billion for the months of July and August, respectively.

The loss resulted from expenses being higher than its revenue in the period under review.

Specifically, NNPC recorded a total revenue of N1.17 trillion, lower than an expenditure of N1.55 trillion, leaving a deficit of N378.49 billion.

In the month of July, NNPC recorded revenue of N149.198 billion and expenses of N200.126 billion, while in August, the group posted N146.617 billion revenue and expenses of N207.287 billion.

Refineries’ loss

The heavy losses were as a result of the lacklustre financial performance of majority of the NNPC subsidiaries in the eight-month period, especially the refineries and retail subsidiaries.

Particularly, Kaduna, Port Harcourt and Warri refineries companies posted a combined loss of N48.92 billion, while NNPC Retail and PPMC recorded a combined loss of N275.16 billion.

Further analysis of the operation of strategic business units showed that Kaduna Refinery and Petrochemical Company Limited posted a loss of N21.90 billion; Port Harcourt Refining Company recorded a loss of N15.1 billion, while Warri Refinery and Petrochemical Company lost N12.62 billion.

NNPC Retail posted a loss of N3.679 billion, while the PPMC recorded N278.837 billion loss. On the other hand, Nigerian Petroleum Development Company, NPDC; Integrated Data Services Limited, IDSL; Nigeria Engineering and Technical Company Limited, NETCO and Nigerian Gas Company, NGC, posted profits of N50.995 billion, N2.934 billion, N544 million and N19.239 billion, respectively.

In its explanations, NNPC stated that 73 percent year-to-date NNPC deficit of N378 billion was accounted for by the PPMC deficit of N278 billion.

It disclosed that PPMC deficit mainly comprised claimable subsidy of N231 billion, which represented 82 percent of the subsidiaries’ deficit and its claimable pipeline repairs/management cost of N69 billion and also crude product losses of N45 billion due to vandalized pipelines.

NNPC further stated that N723.82 billion for domestic crude oil and gas sales proceeds was paid to the Federation Account from January to August.

Revenue from oil, gas

It also stated that from January to July, a total volume of 439 million barrels of crude oil and condensate were lifted by all parties.

The report said: “Total US dollar payment to the Federation from sales of export crude oil, gas and NLNG feedstock for the month of August was $225.7 million.

“Crude oil export sales contributed $108.9 million, that is 48 percent of the dollar payment, compared with 76 percent contribution in previous month of July, while export gas sales and NLNG feedstock accounted for $99.65 million, that is 44 percent contribution compared with 23.7 percent contribution in the prior month of July.

“The remaining $16.8 million was attributable to other dollar denominated receipts by the corporation. A total of $607.8 million has been paid so far to FAAC this year from sales of export oil and gas.”


http://www.vanguardngr.com/2015/10/nnpc-records-n378bn-loss-in-8-months/



cc : lalasticlala
ishilove

I've always advocated that those refineries should be sold off. Kachikwu has advised same but the man from Daura said NO.

sunnyb0b0:
I've always advocated that those refineries should be sold off. Kachikwu has advised same but the man from Daura said NO.

obj wanted to sell them,ppl said no. Nigerians like deceiving themselves and love hearing news about those refineries working at 30% capacity

Is time to disband this rogue nation

Blame it on GEJ

Thank God there no more GEJ to blame.

In the month of July, NNPC recorded revenue of N149.198 billion and expenses of N200.126 billion, while in August, the group posted N146.617 billion revenue and expenses of N207.287 billion.

NNPC lost N111.598billion between the months of July and August. Only God know our loss of June and September. I wonder what would have been the reaction of our brothers in the APC if these period was peresided over by Dr Goodluck Jonathan and PDP. Someone would have shouted "missing money".

On the state of the refinery, I have always maintained that no nation can be governed via propaganda. Is it not the same APC that was lying to Nigerians that the whole thing is stable even when presented with facts that showed the opposite? Anyway, we have a serious task as a country and I hope the incoming economic managers get things right.

That means there are still a lot to do in generating revenue by NNPC.

Maybe they need to look closely into petrochem.

onatisi:
obj wanted to sell them,ppl said no. Nigerians like deceiving themselves and love hearing news about those refineries working at 30% capacity

It was Yar'adua that reversed Refinery sale...Though Baba Iyabo sold them to cronies. The blunt truth is that Nigerians don't know what they want.

And the APC epic drama continues..... Losses everywhere

TonyeBarcanista:

It was Yar'adua that reversed Refinery sale...Though Baba Iyabo sold them to cronies. The blunt truth is that Nigerians don't know what they want.

I will even say that they know what they want but like fooling themselves about how to go about it, even things which they don't have they like to believe that they are its producers producers. The policies buhari is bringing in January will shock many ppl. Selling those refineries was a good idea but Nigerians said no,removing fuel subsidy was the best but Nigerians said no

onatisi:
I will even say that they know what they want but like fooling themselves about how to go about it, even things which they don't have they like to believe that they are its producers producers. The policies buhari is bringing in January will shock many ppl.

Not to speculate, I'm anticipating his own plan for the country

I am expecting the APC goon to invade this thread and nd try hard to defend their master.

This is part of what you get when you have a super clueless leader.

1. Sell of those refineries.

2. Unbundle the oil industry and act only as the oil police. DPR.

3. Look for other viable sources of energy.

Where is the f9 general.

[size=16pt]Eya[/size]

TonyeBarcanista:
Not to speculate, I'm anticipating his own plan for the country

there is nothing buhari can do .he will only try his best and leave as others before have done.the problem with Nigeria is foundational and until those issues are properly addressed we will keep blaming one government or the other because the foundation problem will always rubbish any policy or plan they put upon it

Hope the loss is recover soon!

www.simartngr..com

j

Its well with this country...

why naaaw

OMG?

in other news,order your football jerseys
https://www.nairaland.com/2447345/2015-2016-new-jerseys-available/0

Nigeria's petroleum industry as been operating below par over the years, Hope this new dispensation makes the right injections and policies to improve the sector.

kingdompropty:
I am expecting the APC goon to invade this thread and nd try hard to defend their master.

This is part of what you get when you have a super clueless leader.

1. Sell of those refineries.

2. Unbundle the oil industry and act only as the oil police. DPR.

3. Look for other viable sources of energy.

A clueless leader right?

I can bet you that in the administration of all the past Nigerian leaders, including and especially during the reign of your hero GEJ, NNPC and the FG could not even account for how much they were losing. Yet you think they were 'clue-full' and this administration clueless?

Routine losses from oil theft alone in the last 5 years stood at a staggering 400,000 barrels per day (appx $40million per day). If you do the maths for a period of 8months, that amounts to approximately 1.9Trillion; and this is from crude theft alone, not even mentioning every other gaping financial holes the NNPC under other administrations were known for. Yet someone thinks they were 'clue-full' and this administration clueless?

What we have here is simply a leadership which for the first time in Nigeria's history, now infuses financial accountability and transparency in its dealings. For the first time, someone is now making efforts to estimate and publish the estimated losses from the inefficiency in the system.

A wise man knows the first step in solving a lingeting problem is to first define and quantify its extent. But unfortunately, someone who appears to be possessed with the spirit of non-discernment thinks this sort of approach is a sign of cluelessness?

Great loss

Okk ooo

Ok

what an achievement?

Wailers will start blaming Buhari without realizing this was before he became president.

Madueke almost sold these country

Awwwh.



TO GET RID OF STRETCH MARKS AND OTHER SKIN ISSUES. CHECK MY SIGNATURE

Buhari has finished us!


Choi!!!!

Nigerian Non Profit company(NNPC)

They don't make money yet collect Arm robber salary...

Sango get enough work this year..