The Nigerian National Petroleum Corporation (NNPC) has reported 4.99 per cent drop in revenue realized from its operations in April.
The corporation said in the latest monthly financial and operations report released on Wednesday that it realized a total of N102.45 billion during the month as against N107. 83 billion recorded in March.
Similarly, the report revealed that the corporation also saw its expenses drop by 3.82 per cent, from N126.72 billion in March to N121.88 billion during the month.
The national oil company attributed the drop in revenue to increased pipeline vandalism, which forced its upstream exploration and production subsidiary, the Nigerian Petroleum Development Company (NPDC), to undertake production shut-ins during the month.
The report said the incidences of production disruptions resulted in about N20 billion revenue loss from reduced crude oil export.
“NPDC deficit and low revenue in the month of February to March 2016 and April 2016 was due to production shut–ins, resulting in the loss of entire NPDC’s revenue from crude oil sales of about N20 billion occasioned by vandalism of Forcados crude Export Line,” the report said.
The report also blamed the poor performance by the corporation on losses recorded in the operations of its downstream marketing arm, the Pipelines and Products Marketing Company (PPMC) as a result of the petroleum products scarcity recorded during the month.
Being the sole supplier of last resort, the report said PPMC, in its drive to bridge the petroleum products supply gap, suffered huge losses, adding that shortage of petroleum products compelled the company to sometime engage in commercially unfavourable short term arrangements to ensure availability of supply to consumers.
The other major contributor to the loss suffered by the corporation during the month, the report pointed out, was traced to high operation costs in the corporate headquarters, which included expenses related to the on-going restructuring programme at NNPC.
The high operational cost resulted in a deficit of N13.047 billion by the Corporate Headquarters, while Corporate Service Units posted a loss of N1.28 billion.
Details of the financial performance showed that in spite of the shut-ins, NPDC still recorded a profit of N2.25 billion, while the Integrated Data Services Limited subsidiary posted a loss of N476.06 million.
The National Engineering Technical Company Limited recorded a deficit of N167.41 million and the Nigerian Gas Company posted a profit of N4.54 billion, while the NNPC Retail and the PPMC posted contrasting returns of N718.15 million profits and a loss of N6.905 million respectively.
Other details showed that all the three refineries recorded poor financial performances, with Kaduna, Port-Harcourt and the Warri Refining and Petrochemical Companies recording losses of N2.28 billion, N1.81 billion and N971.04 million respectively.
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