Nigerian National Petroleum Corporation (NNPC) has recorded a group financial loss of N6 billion in September, its latest financial and operations report released on Monday shows.
The corporation’s operational loss increased by N5.966 billion, up from total of N11.216 billion in August this year, to N17.182 billion in September.
In the latest September report, the national oil firm said, “NNPC has been operating in a challenging environment which limits its aspiration to profitability. This 14th publication of NNPC Monthly Financial and Operations Report indicates a trading deficit of N17.18 billion as against the reported August 2016 trading deficit of N11.22 billion.
“The higher deficit in the month of September 2016 was due to decrease in revenue which is attributed to net decline in Petroleum Products Marketing Company (PPMC) petroleum products sales by 20.69 percent or N27.36 billion and Force Majeure declared by SPDC as a result of vandalised 48-inch Forcados export line.”
It stated that pipeline vandalism has continued to take heavy toll on our operations that during the month more than 179 vandalised points were recorded.
The report however, stated that the rate of pipeline vandalism in the country had continued to reduce due to Federal Government and NNPC sustained engagements with the militants.
“In September, 2016, there was 19 per cent drop in the number of pipeline vandalised point relative to August, 2016 (I.e. from 221 vandalised points in August to 179 in September).”
As regards downstream sector, the report noted that NNPC remains the major importer of petroleum products despite the liberalised price regime due to inaccessibility of foreign exchange.
It said, “However, the forex intervention by the international oil companies cushions the effect. Also, the ongoing turn around maintenance is promising to entirely change the anaemic outlook of the country’s refineries.
KENNETH AZAHAN
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