Abuja — Despite the non-functionality of the country’s three refineries — Kaduna, Warri and Port Harcourt refineries — the Nigerian National Petroleum Corporation (NNPC) said it spent N218.13 billion on the facilities in 2019.
This was irrespective of the fact that the refineries continued to be shut down and made little contribution to Nigeria’s fuel supply in the year under review.
Specifically, the NNPC, in its Monthly Financial and Operations Report for December 2019, stated that it Kaduna Refining and Petrochemical Company (KRPC) incurred total expenses of N65.255 billion in 2019, while Port Harcourt Refining Company (PHRC) and Warri Refining and Petrochemical Company (WRPC) incurred total expenses of N48.287 billion and N104.64 billion respectively.
The persistent poor management of the refineries was once again brought to the fore, as despite the huge expenses, the refineries only fetched the NNPC total revenue of N68.957 billion in the year under review, leading to a deficit of N149.226 billion.
Giving a breakdown of the revenue accrued from the three refineries, the NNPC stated that earnings from KRPC stood at N6.28 billion; while revenue from PHRC and WRPC stood at N3.52 billion and N59.155 billion respectively.
To this end, the report noted that KRPC, PHRC and WRPC recorded trading deficit of N58.975 billion, N44.766 billion and N45.485 billion respectively in the year under review.
Irrespective of the poor performance of the refineries, the NNPC disclosed that its total revenue from all its activities and sub-units in 2019 stood at N6.05 trillion; total expenses stood at N5.95 trillion; while it recorded trading surplus of N93.16 billion.
NNPC’s 2019 financial performance was boosted by Nigerian Petroleum Development Company (NPDC), Integrated Data Services Limited (IDSL), National Engineering and Technical Company (NETCO) and Nigerian Gas Company (NGC) with trading surplus of N304.98 billion, N15 billion, N3.6 billion and N77.77 billion respectively.
Also, Nigerian Gas Marketing Company (NGMC), NNPC Retail Limited, Petroleum Products Marketing Company (PPMC) and Duke Oil posted trading surplus of N29.43 billion, N794 million, N22.46 billion and N13.52 billion.
On the contrary, in addition to the unimpressive performance of the refineries, the Nigerian Pipelines and Storage Company (NPSC), NNPC Shipping, NNPC Corporate Headquarters and NNPC Ventures posted trading deficit of N19.23 billion, N11.23 billion, N181.44 billion and N13.28 billion respectively.
The NNPC had stated that the three refineries processed no crude and produced -5,031 metric tonnes (MT) of finished products; comprising -3,052 MT and -1979 MT utilized by WRPC and PHRC respectively in November 2019, adding that the combined yield efficiency of the refineries was 0.00% owing largely to on-going rehabilitation works in the refineries.
It added that, “For the month of November 2019, the three refineries produced 385 MT of intermediate products at combined capacity utilization of 0.00%. The intermediate product was primarily used by PHRC. The declining operational performance recorded is attributable to ongoing revamping of the refineries which is expected to further enhance capacity utilization once completed.”