05 October 2016, Sweetcrude, Abuja — Despite their inability to produce at more than 10 percent of their nameplate capacity, Port Harcourt Refining Company, PHRC, and Kaduna Refinery and Petrochemical Company (KRPC) recorded a profit of N2.812 billion for July 2016.
This was also irrespective of the fact that the refineries are currently undergoing rehabilitation and restoration.
Specifically, latest data released by the Nigerian National Petroleum Corporation, NNPC, disclosed that the Port Harcourt Refinery posted a profit of N2.212 billion, while Kaduna Refinery announced N602.46 million profit in the month under review.
Furthermore, Port Harcourt Refinery recorded N15.93 billion revenue’ crude plus freight cost of N11.06 billion and operating expenses of N2.65 billion.
On the other hand, Kaduna Refinery which has not recorded any significant production in a long while, recorded N3.93 billion revenue and operating expenses of N2.8 billion.
However, Warri Refining and Petrochemical Company (WRPC) recorded an operating loss of N2.03 billion in the month under review, after recording N766.79 million revenue; crude plus freight charges of N860.08 billion and operating expenses of N1.94 billion.
Cumulatively, the three refineries posted combined revenue of N20.09 billion in July 2016; crude plus freight charges of N11.92 billion and operating expenses of N7.38 billion, leading to operating profit of N781.74 million.
In general, the NNPC stated that, “Total crude processed by the three refineries, KRPC, PHRC and WRPC, for the month of July 2016 was 126,756 metric tonnes, an equivalent of 929,275 barrels and intermediate of 40,640 metric tonnes (297,972 barrels) which translates to a combined yield efficiency of 77.82 per cent compared to crude processed in June 2016 of 225,770 metric tonnes (1.655 million barrels) with a combined yield efficiency of 80.39 per cent.
“For the month of July 2016, the three refineries produced 139,2841 metric tonnes of finished petroleum products out of 126,756 metric tonnes of crude processed and intermediate of 40,640 metric at a combined capacity utilization of 6.74 per cent, compared to 12.40 per cent combined capacity utilization achieved in the month of June 2016.”
The NNPC blamed the adverse performance of the refineries on the vandalisation of crude oil pipeline in the Niger Delta region coupled with on-going refineries revamp, noting, however, that the three refineries continue to operate at minimal capacity.
The NNPC further stated that the petroleum products, especially Premium Motor Spirit (PMS) and Dual Purpose kerosene (DPK) production by the domestic refineries in July 2016 amounted to 66.70 million litres compared to 331.15 million litres in June 2016.