NLNG earnings hit 5-year low

Mr. Tony Attah

20 April 2017, Sweetcrude, Lagos – The Nigeria LNG Limited, NLNG, has seen its earnings dip to a five-year low, going by figures released by the company.

According to information on the ‘Facts and Figures on NLNG 2017’ released on Wednesday, the company earned a total of $4.723 billion last year, the lowest in five years.

NLNG’s Managing Director and Chief Executive Officer, Mr. Tony Attah, who presented the document in Lagos, said the development followed the trend in crude oil prices in the global markets, which witnessed a major decline.

Following the sharp decline in crude oil prices, the NLNG’s revenue dropped from $10.791 billion in 2014 to $6.843 billion in 2015, the company said.

This affected dividends to the shareholders, including the Nigerian National Petroleum Corporation, NNPC, which share of the dividends dropped from $1.044 billion in 2015 to $356.127 million last year.

The dividend that went to the NNPC is the lowest in 10 years.

The NLNG is owned by the NNPC, representing the Federal Government of Nigeria, with 49 per cent stake, Shell with 25 per cent, Total LNG Nigeria Limited (15 per cent) and Eni (10.4 per cent).

The multinational oil companies together got $380.959 million as dividends during the year, a major decline from $1.117 billion in 2015.

According to the NLNG, the global gas market was affected by the Fukushima incident in Japan. This, the company said, resulted in a high demand for the LNG in Asia, creating differences in the LNG prices between Asia and other regions.

NLNG currently operates six trains at its Bonny Island location in Rivers State, from which it produces 22 million tonnes per annum of LNG, and 5mtpa of natural gas liquids from 3.5 billion standard cubic feet per day of natural gas intake.

“Plans for building Train 7 that will lift the total production capacity to 30mtpa of the LNG are currently progressing with some preliminary early site preparation work initiated. Further work awaits an FID (final investment decision) by the stakeholders,” company said.

 

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