Saturday, 18 February 2017

NNPC Records N197 Billion Loss In 2016 Operations


The Nigerian National Petroleum Corporation, (NNPC), has announced that it recorded N197.49 billion total loss at the end of the 2016 financial year.


According to analysis of the corporation’s financial and operations report for 2016, which was released yesterday in Abuja, the NNPC ended all but one of its monthly trading activities in deficits.

According to data generated from the report, the corporation earned N1.726 trillion but recorded an expenditure of N1.923 trillion.

The only month it made a profit in the year was May when it posted a profit of N273.74 million.

“NNPC has been operating in a challenging environment which limits its aspiration to profitability. Overall, a trading deficit of N17.01 billion was recorded for the month under review as against the reported November, 2016 trading deficit of N18.72 billion.

“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.”

While the December 2016 loss figure in the report was N17.01 billion, a review of the last 11 months indicated that in January, the NNPC had a N3.55 billion trading deficit, it recorded N24.23 billion in February as deficit, N18.89 billion in March, N26.51 billion in June, N24.18 billion in July, N11.22 billion in August, N17.18 billion in September, N16.85 billion in October and N18.72 billion in November. It made N273.74 million in May as profit though.


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