Nigeria’s four refineries under the management of the Nigerian National Petroleum Corporation have not made any profit since May 2018.

Instead, the refineries posted losses consecutively between May last year and May this year.



The country’s refineries comprise Warri Refining and Petrochemical Company, two plants at Port Harcourt Refining Company and Kaduna Refining and Petrochemical Company.

Latest data obtained from the NNPC on Monday showed that the WRPC, the KRPC and the PHRC ran deficits for 13 straight months, as they recorded no operating surplus.

A further analysis of the performance of the refineries showed that they recorded the highest consolidated loss of N20.1bn in the month of May 2018, as this dropped to N13.63bn in May this year.

It was also observed that the losses of the WRPC and the PHRC dropped from N7.16bn and N8.69bn in May 2018 to N4.6bn and N4.7bn in May 2019, respectively.

The losses incurred by the KRPC, on the other hand, moved up marginally during the period under review, as it climbed from N4.22bn in May 2018 to close at N4.31bn in May 2019, according to the latest figures from the NNPC.

The NNPC further stated that in May 2019, the three refineries processed 32,967 metric tonnes of crude to produce 21,347MT for the month as against zero quantity processed in April 2019.

It noted that only the WRPC produced the finished petroleum products of 21,347MT in May 2019.

The combined yield efficiency for the month under review was 91.29 per cent compared to zero per cent recorded in April 2019, owing largely to rehabilitation work needed to be carried out in the refineries.



“The KRPC has not processed any crude over the past couple of months,” the NNPC said.

For the month of May 2019, the WRPC and the KRPC produced 4,771MT and 3,977 of intermediate products, respectively, while the three refineries produced 8,748MT of intermediate at 1.75 per cent combined capacity utilisation.

“The lower operational performance recorded is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilisation once completed,” the NNPC stated.

It further stated that the corporation had been adopting a merchant plant refineries business model since January 2017.

It explained that the model took cognizance of the products worth and crude costs, adding that the combined value of output by the three refineries at import parity price for the month of May 2019 amounted to N5.24bn.

The corporation added that the associated crude plus freight costs and operational expenses were N5.3bn and N13.57bn, respectively, adding that this resulted in an operating deficit of N13.63bn by the refineries.

Source: https://punchng.com/refineries-post-losses-in-13-months/

Typing

Nawa for dis our country oooh

Refineries in Nigeria is a huge scam.

I advice they sell all those dead equipments to recyclers, @least they can grind them and make good returns to the Nation's treasury.

What do i know' unfortunately the Nation's treasury is guided by a lifeless being

Pamatips:
Nigeria’s four refineries under the management of the Nigerian National Petroleum Corporation have not made any profit since May 2018.

Instead, the refineries posted losses consecutively between May last year and May this year.



The country’s refineries comprise Warri Refining and Petrochemical Company, two plants at Port Harcourt Refining Company and Kaduna Refining and Petrochemical Company.

Latest data obtained from the NNPC on Monday showed that the WRPC, the KRPC and the PHRC ran deficits for 13 straight months, as they recorded no operating surplus.

A further analysis of the performance of the refineries showed that they recorded the highest consolidated loss of N20.1bn in the month of May 2018, as this dropped to N13.63bn in May this year.

It was also observed that the losses of the WRPC and the PHRC dropped from N7.16bn and N8.69bn in May 2018 to N4.6bn and N4.7bn in May 2019, respectively.

The losses incurred by the KRPC, on the other hand, moved up marginally during the period under review, as it climbed from N4.22bn in May 2018 to close at N4.31bn in May 2019, according to the latest figures from the NNPC.

The NNPC further stated that in May 2019, the three refineries processed 32,967 metric tonnes of crude to produce 21,347MT for the month as against zero quantity processed in April 2019.

It noted that only the WRPC produced the finished petroleum products of 21,347MT in May 2019.

The combined yield efficiency for the month under review was 91.29 per cent compared to zero per cent recorded in April 2019, owing largely to rehabilitation work needed to be carried out in the refineries.



“The KRPC has not processed any crude over the past couple of months,” the NNPC said.

For the month of May 2019, the WRPC and the KRPC produced 4,771MT and 3,977 of intermediate products, respectively, while the three refineries produced 8,748MT of intermediate at 1.75 per cent combined capacity utilisation.

“The lower operational performance recorded is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilisation once completed,” the NNPC stated.

It further stated that the corporation had been adopting a merchant plant refineries business model since January 2017.

It explained that the model took cognizance of the products worth and crude costs, adding that the combined value of output by the three refineries at import parity price for the month of May 2019 amounted to N5.24bn.

The corporation added that the associated crude plus freight costs and operational expenses were N5.3bn and N13.57bn, respectively, adding that this resulted in an operating deficit of N13.63bn by the refineries.

Source: https://punchng.com/refineries-post-losses-in-13-months/

thats not a problem... they will just budget another billions of dollars to facelift it and boom! its back in profit.... so easy.

by the time they are done, rather than sell NNPC, we would rather sell the whole country

Imagine recording zero profits in a multi-million dollar investment.

Even iya Risikat whose capital for selling bread and beans is less than 2000 naira still makes returns on a daily basis.


Buhari and his appointees are simply hexagonal pegs in round holes.

Further proof that government has no business being in business ,these losess would have been avoided if these refineries were privatized.

Hardworking Buhari is working

I will design your website today...check my signature

https://www.vanguardngr.com/2015/07/how-yaradua-was-pressurised-to-revert-refineries-sold-to-dangote-obasanjo/amp/ same yar adua some people dey hail

Thanks to Buhari
BIAFRA:ipob speaks on nnamdi kanu's next move



https://www.youtube.com/watch?v=yNq-8D-6X6E

Check my signature for your uk used laptop deals

realnas:
Further proof that government has no business being in business ,these losess would have been avoided if these refineries were privatized.

Proof that the petroleum minister (Buhari) is a fraud.

bd

What a country................................ so you mean they have not made profit for over a year and we have a minister of petroleum resources?

ohhhhhhh... I forget...


Na Baba be The minister... I nerer experedit

okay now

Has not buhari failed in this area too ?

No Goverment Agency can ever make profit with the kind of unproductive civil servants that we have who only protest for pay rise

.

Its even better to sell the refineries as scrap

If the @NNPC refineries were private companies, would they still be operating at a deficit so that the shoddy business of fuel importation thrives?

We need to ask ourselves hard questions. How long should this continue? Why are we silent while our future is mortgaged?

How can companies meant to produce and sell some of the most valuable products in the country continue swimming in losses?

What exactly is wrong with the black man? Why exactly are these refineries still owned by govt?

Everything about this government is a monumental scam and fraud.They spent billions upon billions on a phantom Turn Around maintenance, but ironically, even after those billions were spent, the refineries are even unproductive and generating even greater losses than before the maintenance.


[img]https://images./lBLIaZoEpRdOMVO9apRlP.jpg[/img]

realnas:
Further proof that government has no business being in business ,these losess would have been avoided if these refineries were privatized.

Obasanjo privatized them but the usually low IQ Nigerians put enough pressure on Yaradua to reverse the sales.

Can someone remind me who the minister for petroleum is or was?

As expected

solmusdesigns:



No Goverment Agency can ever make profit with the kind of unproductive civil servants that we have who only protest for pay rise

.

Don't blame civil servants. It's not about them. Government should not be involved in running of any commercial business, period. Those refineries should be sold asap to private operators.