NNPC remits N1.118 trillion to FG in one year

The Nigerian National Petroleum Corporation, NNPC, has declared payment of N1.1118 trillion into the Federal Account between April and March 2016. This was contained in the Corporation’s full financial report for the month of March 2016. According to the report, part of the amount was the total sum of N69.544 billion from the sale of domestic crude oil and gas, plus other income, which was paid into the Federation Account in March.

In addition, it said that NNPC, also recorded N107.826 billion revenue for March as against N104.804 in February. Revenue rose marginally by 2.88 percent, adding that the expenses of the Corporation slowed by 12.92 percent to N112.368 billion from N129,034 billion recorded in previous month. The report stated that NNPC made a loss of N18.89 billion in March, saying the loss was an “improvement” from a deficit of N24.23 billion it recorded in February.

A breakdown of the financial performance of its subsidiaries showed that the Nigerian Petroleum Development Company, NPDC, Integrated Data Services Limited, IDSL, and National Engineering and Technical Company Limited posted losses of N9.874 billion, N469 million and N69 million, respectively. It reported that the Nigerian Gas Company recorded a profit of N5.155 billion. “Kaduna, Port Harcourt and Warri refining companies recorded losses of N1.824 billion, N1.971 billion and N845 million, respectively, while the PPMC recorded a deficit of N923 million,” it added.

The report said that the deficit recorded by NPDC in February and March 2016 were due to production shut–in occasioned by vandalism of Forcados Export Line. This, it said resulted in the loss of its entire revenue from crude oil sales of about N20 billion. The report also put the combined value of output by the three refineries at import parity price in March 2016 at N22.93 billion, while the associated crude plus freight cost was N20.02 billion.

It said that this gave negative margin of N3.95 billion after considering overhead of N6.87 billion. The report also said that a total of N85.66 billion was collected as sales revenue from white products sold by PPMC in the month of March 2016 compared with N85.23 billion collected in the previous month. “Total revenues generated from the sales of white products for the period April 2015 to March 2016 stands at N775.90 billion where PMS contributed about 88.85 per cent of the revenues collected with a value of N689.41 billion.”

Meanwhile, the Corporation revealed that it is collaborating with CBN to resolve the Dollar crunch facing the Major marketers. According to it, marketers pulled out from petroleum products imports following Government policies on foreign exchange early this year. Due to this it said, about 55.2% of the total Domestic Crude Oil supply in the month of February 2016, was via Direct Sale-Direct Purchase, DSDP.

It hinted that with the nation’s three refineries now working, refining is at full speed to address the perennial shortage of fuel in the Country. “This is in addition to co-locating of smaller refineries to leverage on the existing facilities and boost the nation’s refining capacity from 445,000 barrels per day to 650,000,” it said.