Refineries: NNPC’s Profit Dips By N5bn in a Month

oil refinery

The decline in the cumulative performance of Nigeria’s refineries reduced the group profit of the Nigerian National Petroleum Corporation by N5bn, latest figures in the oil firm’s financial and operations report have revealed.

In the just released March 2018 operations report of the NNPC, the corporation made an operating surplus of N11.7bn, incurred a total expense of N354.6bn and generated a revenue of N366.3bn for the month under review.

It had recorded an operating surplus of N16.7bn, a total expense of N357.6bn and revenue of N374.4bn in the preceding month of February 2018.

A comparative analysis of figures from the oil firm’s reports for the two months, showed that the corporation’s profit dropped in March by N5bn, its total expenditure reduced by N3bn, while its revenue also reduced by N8.1bn.

Explaining what led to the reduction in profit for March 2018, the NNPC stated that in the month under review, it made “a trading surplus of N11.72bn, which was relatively lower than the previous month’s surplus of N16.72bn. This, it said represented N4.99bn decline from February 2018 performance.

“This low performance is attributable to the refineries’ downturn with high cost of operations and reduction in the NPDC’s (Nigeria Petroleum Development Company’s) production, resulting in a decline in their revenue.”

In the downstream sector, the NNPC stated that in March 2018, a total of 2.49 billion litres of Premium Motor Spirit, popularly known as petrol, was supplied by the oil firm, translating to 80.26 million litres per day.

The NNPC said it had continued to monitor the daily petrol evacuation figures from depots across the country and had engaged where necessary the Nigerian Customs Service through existing joint monitoring team.

It also stated that in March 2018, pipeline break stood at 224, of which 25 pipeline points either failed to be welded or clamped.

It said 199 pipeline points were vandalised as against 125 recorded in February this year, adding that Port Harcourt-Aba and Aba-Enugu pipeline segments accounted for 177 points or 88.94 per cent of the affected pipeline points.

The report stated that crude oil production in Nigeria averaged 2.01 million barrels per day in February 2018, which was the second highest production level in the last 23 months.

“The steadiness in production is associated to the resumption of export activities at the Forcados Terminal after many months of non–operational activities as well as the engagement with the various stakeholders,” it said.

A total of 56.24 million barrels of crude oil and condensate was produced in the month of February 2018, representing an average daily production of two million barrels.

This represents an increase of 0.59 per cent in the average daily production compared to January 2018 average daily performance.

Of the February 2018 production, Joint Ventures and Production Sharing Contracts contributed about 33.44 per cent and 38.14 per cent, respectively, while Alternative Funding, NPDC and Independents accounted for 13.55, 7.32 and 7.54 per cents, respectively.

The March 2018 national gas production stood at 253.06 billion cubic feet, translating to an average daily production of 8,163.58 million standard cubic feet per day, representing 7.64 per cent increase compared to the previous month of February 2018.

The daily average natural gas supply to gas power plants stood at 854.40mmscfd, equivalent to power generation of 3,492 megawatts, which was the highest figure in last two years.

For the period of March 2017 to March 2018, a total of 3,108.1BCF of gas was produced, representing an average daily production of 7,851.81mmscfd during the period.



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