NNPC Records N48.02bn Half-Year Operational Deficit

The Nigerian National Petroleum Corporation (NNPC), on Thursday published its month operational report for the month of June, showing that it booked N48.015bn deficit in the first half of this year, at a time when the Federation Accounts should have been N300.577bn richer, judging by the budget projections for the period.
Specifically, in the month of June, the corporation recorded N5.195bn deficit, up from the previous month’s N3.551bn, as against the monthly projected surplus of N50.096bn, which was based on its projected monthly budget revenue of N367.735bn and N317.638bn expense.
According to the corporation’s NNPC Monthly Oil & Gas Report: June, 2017, revenue for the month fell to N295.75bn from N307.865bn in May, but expense jumped to N300.945bn, after dropping from N311.417bn in the previous month.
Between January and June, according to the report, NNPC’s revenue stood at N1.854tr, as against the N2.206tr projected in its budget for the period, even as the expense side kept pace at N1.902tr, slightly below the projected N1.905tr.
The worst performing subsidiary of the corporation seems to be the National Petroleum Development Company, which only managed to remain N951m above water, at a time it was expected to contribute N47.151bn surplus, which the management needs to explain, given that in May, the same entity recorded N4.042bn surplus.
Subsidiaries that made outright losses included the Kaduna Refinery, which lost N3.461bn, a month after reporting N2.336bn deficit; while Warri Refinery suffered N1.735bn deficit, slightly lower than the previous N1.938bn; leaving Port Harcourt Refinery as the only profitable of its category, with N8.539bn surplus, representing an improvement over the N6.953bn in May.
Other major contributors to the loss for the month included NPMC/NPSC, N3.848bn, which improved from N7.68bn in May, but still worse than the projected monthly deficit of N2.512bn; which was however better than the N12.116bn deficit recorded by the corporate headquarters; up from the previous N8.709bn.
NNPC’s petroleum products marketing subsidiary could only report N580m surplus, down from the prior month’s N729m, a far cry from its N1.387bn month projection; IDSL however surpassed its projected monthly revenue surplus of N867m, at N1.598bn, an improvement over prior month’s N723m deficit. NGNGPTC posted a N15.816bn profit, up from N9.242bn in May, without which the group’s deficit position could have been worse.
YTD, NPDC recorded a surplus of N36.828bn, at a time it ought to have contributed N282.53bn to the nation’s consolidated revenue; while NGNGPTC’s N27.773bn surplus is just above the N55.45bn surplus expected from it; even as IDSL recorded actual surplus of N3.499bn, as against the N6.818bn budgeted. Kaduna Refinery’s N9.391bn may have been an under-estimation of its budgeted N2.304bn deficit; PHRC with a budgeted surplus of N42.873bn, closed the period with an actual of N30.597bn; even as the Warri Refinery is under-performing the 2017 budget with an actual deficit of N7.373bn, compared to an anticipated surplus of N24.88bn.
Even the retail outlets that ought to be at a budgeted surplus of N8.324bn has an actual of N3.849bn for the period; while NPMC/NPSC, which was expected to come with a half-year deficit of N15.076bn, posted N62.52bn. Also, the corporate headquarters contributed a deficit for the period of N67.983bn, which was lower than the anticipated N94.135bn. NNPC Ventures recorded a deficit for the half year of N6.428bn, down from the budgeted N8.229bn.
For the corporation however, it was not just about predominantly red numbers, as according to it, there was a seamless supply and distribution of petroleum products nationwide thereby guaranteeing stable products and fuel queue-free-filing stations across the country.
This, the report added, was in addition an average national daily gas production for June 2017 of 7,571.50mmscfd, while average daily natural gas supply to gas power plants increased to 730mmscfd which is equivalent to power generation of 2,969 megawatts for the month.
“The resumption in activities at Forcados Export Line Terminal has continued to improve and enhance the nation’s crude oil production,” the report added.