State-owned oil company, the Nigerian National Petroleum Corporation, NNPC, recorded a total loss of N65.83bn between January and May this year, its latest group financial report for the month of May has shown.
According to the report, which was released on Friday, August 5, 2016, the corporation’s revenue in the first five months was N588.46bn, while the expenses incurred were put at N654.29bn.
The report, however, stated that the national oil firm recorded a profit of N274m in the month of May 2016, while its three refineries posted losses in the period under review.
The refineries also recorded a total loss of N27.18bn for the first five months of the year, despite assurances from the management of the corporation to revamp the facilities.
The NNPC’s performance in May was an improvement over what was recorded in the preceding month as the group made a total loss of N19.43bn in April 2016.
Early last month, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, stated that the corporation, for the first time in its history, recorded a profit in May 2016.
Kachikwu also said the NNPC was able to cut its operational cost by 30 per cent, adding that Nigerian refineries had started working for the first time in about 10 years.
“We need to find a structure, and we have started, in which private funds will come into the refineries and we will be able to rebuild our refineries to 90 or 100 per cent capacity,” Kachikwu said.
“I’ve already made a commitment that by 2018, 60 per cent of refined products importation will stop and by 2019 we must become a net exporter of refined petroleum products. I am happy to announce that in our May results, for the first time in the history of this company, the NNPC made a profit of N270m.”
Nigeria’s refineries include Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company.
