The Nigerian National Petroleum Corporation, NNPC, recorded ₦17.18 billion deficit in its trading activities for September 2016, the national oil company’s financial and operational report for the month revealed.
A summary of the Group’s performance showed operating revenue for September 2016 at about ₦157.89 billion, against operating expenditure of ₦175.09 billion, compared with about ₦181.53 billion and ₦192.75 billion realized as revenue and expenditure respectively for August.
The report noted the challenging environment it said the corporation has been operating which was limiting its aspiration to profitability, saying this accounted for a trading deficit of about ₦11.22 billion reported last August.
The higher deficit in September 2016 was attributed to a decrease in revenue generation as a result of net decline in its marketing arm, PPMC, whose sale of petroleum products reduced by 20.69 per cent, or about ₦27.36 billion.
The Corporation said it remained optimistic it could still attain aspirations, especially in ensuring security and infrastructural integrity of its operational facilities.
The report cited the situation where a substantial portion of crude oil sales the corporation’s upstream exploration and production subsidiary, NPDC, valued at over ₦20 billion could not be realized due to pipeline vandalism.
The situation was also attributed to the Force Majeure declared by Shell Petroleum Development Company (SPDC) as a result of vandalized 48-inch Forcados export trunk line.
Force Majeure is an advanced notice usually issued by oil companies to their customers that due to unforeseen events that disrupt their operations beyond their control, they would not be able to meet their scheduled contractual obligations.
The report noted the negative impact of pipeline vandalism on the corporation’s operations during the month, with more than 179 vandalized points recorded.
According to the report, about $131.50 million was realized from total export sale during the month, representing 29.21 per cent decrease relative to the performance in August.
“Crude oil export sales contributed $86.80 million (or 66.01 per cent) of the dollar transactions, compared with $101.54 million contribution in the previous month, with export gas sales amounting to $44.70 million in the month.
Details showed the NPDC realized a surplus of N10.598 million from its operations for the month, with about N31.12 million revenue over its expenses of N20.522 million, while Integrated Data Services Limited (IDSL) realized about N840million, against N603 million and about N237million profit.
For the National Engineering and Technical Company Limited (NETCO), a surplus of N437million was realized during the month, with about N866 million revenue raised, against an expenditure of N429 million.
From a revenue yield of N18.404 million and an expenditure of N15390 million, the Nigerian Gas Company (NGC) made a profit of N3.013 million, just as the NNPC Retail made a profit of N834 million, after realizing N1.721 billion revenue and expenditure of about N887 million for the month.
The arms of the corporation that operated at a loss during the month were the refineries, with Kaduna Refining and Petrochemical Company (KRPC) posting a loss of N2.570 billion, with a revenue of N1.07 million and expenditure of N2.571 billion.
The Port Harcourt Refinery Company (PHRC) lost about N2.087 billion, with only N37.47 million and total expenditure of N2.124 billion, while Warri Refining and petrochemical Company (WRPC) had a deficit of N1.445 billion, against a revenue of N441 million and expenditure of N1.446 billion.
The PPMC recorded a loss of N11.217 million, from a revenue of N104.895 million and expenditure of N116.111million, while Corporate headquarters recorded a loss of N13.329 million from a revenue of N4.14 million and expenditure of N13.333 million.
Corporate Services Unit (CSU) had a loss of about N1.654 billion, against a revenue of N1.86 billion and expenditure of N1.656 billion during the month.