Nigeria’s State Oil Firm NNPC loses N197bn in 2016

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Challenging factors including disruption of operations in the downstream sector has cost The Nigerian National Petroleum Corporation, NNPC a total loss of N197.49 billion at the end of the 2016 financial year.

According to data generated from the corporation’s Financial and Operational report for 2016, the corporation earned N1.726 trillion but recorded an expenditure of N1.923 trillion.

Further checks revealed that the corporation recorded a loss of N17.01 billion in December 2016 as against the N18.72 billion recorded in November of the same year.

“This represents a decrease of N1.71bn in trading deficit as against November 2016. The marginal decrease is due to improved PPMC (Pipelines and Product Marketing Company) coastal sales following the completion of reconciliation with other marketers,” the Corporation said.

“Other factors that affected the overall NNPC’s performance include the force majeure declared by SPDC (Shell Petroleum Development Company) as a result of the vandalised 48-inch Forcados export line after the restoration on October 17, 2016, among others.”

Explaining further, the NNPC disclosed that it had been operating in challenging situations, which limited its aspiration to profitability, noting that this was one major reason why it recorded a trading deficit of N17.01bn in December 2016.

Meanwhile, in November 2016, the corporation said crude oil production inched up to 1.92 million barrels per day, which represented 7.77 per cent increase relative to October’s production, but the figures dropped by 12.04 per cent, when placed against the November 2015’s performance.

“The month’s performance is attributed to the Federal Government’s overtures to Niger Delta militants towards providing a lasting peace to the crisis,” the report said.

“However, some of the major drag to our performance includes the subsisting force majeure at the Forcados and Brass terminals, and shutdown of two NCTL flow stations following pipeline leakages.”

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