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NNPC Posts N28.38bn Loss as Refineries Fail to Improve

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  • NNPC Posts N28.38bn Loss as Refineries Fail to Improve

The Nigerian National Petroleum Corporation posted a cumulative loss of N28.38bn, while the combined capacity utilisation of Nigeria’s three refineries failed to improve, the latest oil and gas report from the oil firm indicated.

An analysis of the report, which was released on Friday in Abuja, showed that the corporation recorded a loss of N14.12bn in February 2017, a marginal decline from the N14.255bn recorded in January.

Its cumulative year-to-date loss for 2017 was put at N28.38bn.

On the operational performances of the refineries in the month under review, the report stated that the combined capacity utilisation of the facilities dropped from 36.73 per cent in January to 29.06 per cent in February.

Nigeria’s three refineries are the Warri Refining and Petrochemical Company, the Port Harcourt Refining Company and the Kaduna Refining and Petrochemical Company.

Specifically, the WRPC posted the worst operational performance during the review month as its capacity utilisation plunged from 42.56 per cent in January to 4.7 per cent in February.

The PHRC and KRPC showed slight improvements, as their capacity utilisation increased from 38.51 per cent and 26.72 per cent to 40.73 per cent and 34.45 per cent, respectively.

The report said, “Total crude processed by the three local refineries (KRPC, PHRC and WRPC) for the month of February 2017 was 493,773 metric tonnes (3,620,344 barrels), which translates to a combined yield efficiency of 90.37 per cent compared to the crude processed in January 2017 of 691,122MT (5,067,307 bbls), which translates to a combined yield efficiency of 88.23 per cent.

“For the month of February 2017, the three refineries produced 331,236MT of finished petroleum products and 114,983MT of intermediate product out of 493,773MT of crude processed at a combined capacity utilisation of 29.06 per cent compared to 36.73 per cent combined capacity utilisation achieved in the month of January 2017.

“The operational performance is attributable to low crude oil available for production, which dropped by 19.07 per cent relative to last month total available crude oil for refining. The ongoing revamping of the refineries will enhance capacity utilisation once completed. The three refineries were active during the month.”

The corporation further said that the trading deficit of N14.12bn represents about one per cent improvement compared to N14.26bn recorded in January, 2017.

“The decrease in the deficit is mainly attributed to the improved upstream result,” it said.

The national oil firm added that “other factors that affected the overall NNPC’s performance included production shutdown of Trans Niger Pipeline and Nembe Creek Trunk Line due to pipeline leakages; shutdown of Agbami Terminal for mini-TAM and existing force majeure declared by the SPDC as a result of the vandalised 48-inch Forcados export line after the restoration on 17th October, 2016.”

It went on to explain that in January, 2017, crude oil production in Nigeria increased to 1.84 million barrels per day, amounting to a 16.51 per cent increase relative to the December 2016 production, but it lagged behind January 2016 performance’s by 14.52 per cent.

It said the Federal Government’s engagement with the militants had continued to enhance production.

“Pipeline sabotage in the country decreased from 60 downstream pipeline vandalised points in January 2017 to 49 in February 2017. This represents 18 per cent decrease relative to the previous month indicating that Federal Government and the NNPC’s continuous engagements with the stakeholders are yielding the expected outcome,” it added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

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The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

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The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

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Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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