The NNPC Group recorded a trading deficit of ₦5.27Billion in April, 2017, blaming challenging environment which it said “limits its much aspiration to profitability.”
The deficit,which was revealed in its April report however indicated a 6.20% decrease in the previous month’s record of ₦5.62Billion.
In its April, 2017 Financial and Operations Report the corporation said the Group operating revenue for the months of March 2017 and April 2017 stood at ₦354.65billion and ₦327.47billion respectively, though representing 149.27% and 135.64% respectively of monthly budget.
But operating expenditure for the same periods were ₦360.19billion and ₦326.88billion respectively, which also represent 171.77% and 156.16% of budget for the months respectively.
The NNPC blames the deficit to expenses by its subsidiaries, including huge expenses NPMC/NPSC/ML and lowered NPDC revenue
“Other factors that impacted the overall NNPC’s performance include production shutdown of Trans Niger Pipeline (TNP) & Nembe Creek Trunk Line (NCTL) due to pipeline leakages, shut down of Bonga Terminal for TAM and existing Force Majeure declared by SPDC as a result of the vandalized 48-inch Forcados export line after the restoration on 17th October, 2016,” the Corporation stated in the report.
Meanwhile total crude processed by the three refineries(KRPC,PHRC& WRPC) for the month of April 2017 was 447,738MT(3,282,814.13bbls) which translates to a combined yield efficiency of 87.83%.
Notably,for the month of April 2017, the three Refineries produced 307,946MT of finished petroleum Products out of 447,738MT of Crude processed at a combined capacity utilization of 24.59% compared to 13.46% combined capacity utilization achieved in the month of March 2017.
The corporation also attributed improved operational performance is attributed to increase in crude oil available for production by 23.89% relative to last month total available crude oil for refining.
It further expressed optimism that the ongoing revamping of the Refineries will enhance capacity. utilisation once completed.
With respect to the dollar payments to Federation Account,a total export sale of $158.03 million was recorded in April 2017m.This is $203.92 million lower than the preceding month’s performance of $361.95 Million.
Moreso,crude oil export sales contributed $71.81(or45.44%) of the dollar transactions compared with $255.50 Million contribution in the previous month.
Also,export Gas sales amounted to $86.21 Million in the month.The April 2016 to April 2017 Crude oil and Gas transactions indicate that Crude oil & Gas worth $2,279.54 Million was exported.
Also,total export proceeds of $142.12 million were recorded in April 2017 as receipt agains $404.55Million in March 2017.Most notably,contribution from crude oil amounted to $71.81million;while Gas and Miscelleneous reciept stood at $70.29 million and $0.013 million.
The total export proceeds reciept of $142.12 Million was remitted to fund the JV cash Call for the month of April 2017 to guarantee current and future production.
As regards naira payment into federation account,the domestic crude oil and Gas reciept during the month amounted to N142.09 Billion,consisting of N2.23 Billion from Domestic Gas and the sum of N139.86 Billion from domestic crude oil.
Out of the naira receipt,the sum of N46.54 Billion was transferred to joint Venture Cash call(JVCC) being a first line charge and to guarantee continuous flow of revenue stream to federation account,the report revealed.
Meanwhile,NNPC transferred the sum of N95.56 billion into federation account during the month under review from the net domestic crude oil and gas receipt. This includes Gas receipts of N2.23Billion.No refund was made to FG in respect in respect of N450 Billion indebtedness as the debt has been fully repaid.
From April 2016 to April 2017,Federation,JV,and FG received the sum N798.63 Billion and N75.96 Billion respectively.