NNPC loses N26.5 billion in one month

Posted by News Express | 8 August 2016 | 1,498 times

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The Nigeria National Petroleum Corporation (NNPC) has reported a loss of N26.51bn in its June 2016 operations, a month after it declared N274 million first profit in 15 years.

The corporation’s latest monthly financial and operations report showed that out of N118.39bn revenue it earned in the month of June, it spent N144.90bn leaving a deficit of N26.51bn.

NNPC in the report explained that the loss in the month of June was majorly due to decrease in revenue generation as a result of decline in petroleum products sales by 13.30 per cent or N14.9bn and increase in products distribution costs.

 “Also June 2016 operations witnessed the major impact of incessant vandalism; during the month more than 261 vandalized points were recorded,” it said.

The Corporation also attributed the loss to the inability of its oil production subsidiary, NPDC, to realise a substantial portion of estimated crude oil sales for the month of over N20.0bndue to Force Majeure declared by Shell as a result of the vandalised 48-inch Forcados export line.

“In addition pension intervention by CHQ (NNPC Headquarters) to bridge the funding gap as well as the one-of gratuity payment affected the performance,” NNPC also lamented in the report.

In May when the NNPC made its first trading surplus of N274 million in over 15 years of operations, the report clarified that the trading surplus was as a result of increase in cash flow due to increase in pump price of petrol.

“The upward review resulted to a trading surplus of N0.27bn and not ‘net profit’ because there are other expenses that ordinarily should have been netted off,” it said. (Daily Trust)

Source: News Express

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