Tuesday, 3 November 2015

NNPC MAKES HUGE LOSES IN TWO MONTHS

The Nigerian National Petroleum Corporation (NNPC) surely needs some reforms as -
A total loss of about N120bn in the months of August and September 2015 has been reported to have been incurred by the NNPC.

The fact and details of this loss is gathered from the latest NNPC Group financial reports which has given the loss incurred by the NNPC in August 2015 to be about N60.67 billion and N59.4 billion incurred in September 2015, by the Country's oil corporation.

The financial reports specifically stated that the NNPC revenue in August 2015 was N146.617bn while it's expenses were put at N207.287 bn. In September, the  total expenses of the corporation were N171.914bn while it's revenue is about N112.514bn.

Reports noted that these loses were incurred before subsidy and that the highest loss is recorded by the Products and Pipeline Marketing Company (A subsidiary of the NNPC). The PPMC is reported to have incurred a loss of about N34.275bn in the month of August 2015 and the sum of about N57.677bn in September, 2015.

The Financial report have shown that the four government owned and managed refineries in Nigeria through the NNPC were still not making any profits, despite claims that the facilities had started producing refined products for public consumption.

However, as can be recalled the Group Managing Director (GMD) of the NNPC,  Mr Ibe Kachikwu has recently stated that; he has a mandate to get the refineries running by December 2015. The ultimatum was given mandating all the Refineries to begin full production before the expiration of this deadline.
According to the GMD of the NNPC, "if any refinery produces below 60% then it is not in production, because the performance capacities of refineries world wide are 90% and and above categories, that only then can it be said to be a profitable refinery".

As can be recalled during the recent Ministerial screening before the Nigerian Senate, the GMD of NNPC categorically stated: that nonperforming Refineries would be shut down at the expiration of the 90 days performance deadline.

 

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