Skip to main content

Oil revenue falls by five percent, states in trouble

Dr Ibe Kachikwu, NNPC managing director and junior minister of petroleum

Dr Ibe Kachikwu, NNPC managing director and junior minister of petroleum

The revenue of Nigerian National Petroleum Corporation (NNPC) dipped in April by 4.99 per cent to N102.45 billion from N107. 83 billion recorded in March, the agency said in a report.

The Monthly Financial and Operations Report for April was released in Abuja on Wednesday.

It states that the corporation’s expenses also dipped by 3.82 per cent to N121.88 billion compared to N126.72 billion spent in the preceding month.

It attributed the drop to pipeline vandalism which forced one of its subsidiaries, Nigerian Petroleum Development Company (NPDC), to undertake a production shut-in, which resulted in the loss of monthly crude oil revenue of N20 billion.

The report said “NPDC deficit and low revenue in the month of February to March 2016 and April 2016 was due to production shut–in, resulting to loss of entire NPDC’s revenue from crude oil sales of about N20 billion occasioned by vandalism of Forcados Export Line.”

It further blamed the poor performance on losses recorded in the operations of Pipelines and Products Marketing Company (PPMC) from the fuel scarcity recorded during the period.

It said PPMC, being the sole supplier of last resort, in its drive to bridge the petroleum products supply gap, suffered losses.

It said shortage of products compelled PPMC to sometime engage in commercially unfavourable short term arrangements.

Another major contributor to the loss was high operation costs in the Corporate Headquarters, which included expenses related to the on-going restructuring programme at NNPC, the report said.

A breakdown of the financial performance shows that in spite the shut-in, NPDC recorded a profit of N2.25 billion but Integrated Data Services Limited posted a loss of N476.06 million.

“National Engineering Technical Company Limited recorded a deficit of N167.41 million and the Nigerian Gas Company posted a profit of N4.54 billion.

“The NNPC Retail and the PPMC posted profit of N718.15 million and a loss of N6.905 million respectively,” the report states.

It said that all the three refineries recorded poor financial performances.

It noted that the Kaduna, Port-Harcourt and the Warri Refining and Petrochemical Companies posted losses of N2.28 billion, N1.81 billion and N971.04 million respectively.

It further said that the Corporate Headquarters recorded a deficit of N13.047 billion, while Corporate Service Units posted a loss of N1.28 billion.

Labels:

Comments

Post a Comment

Popular posts from this blog

Houthis Claim Attack on Central Israel in Response to Gaza ‘Massacres’

The ongoing conflict between Israel and Hamas has taken a concerning regional turn as the Houthi rebels in Yemen claimed responsibility for an attack on central Israel. The group announced this as part of their escalating response to what they describe as "massacres" in Gaza amid the Israeli military’s operations in the strip. Details of the Attack The Houthis, a Shiite militant group with ties to Iran, declared that they launched missile and drone strikes targeting Israel. While the exact impact of these attacks remains unclear, reports suggest that Israel’s defense systems intercepted several threats over its airspace. This marks a significant escalation as the Houthis widen their involvement in the conflict beyond their typical operations within Yemen and neighboring Saudi Arabia. The Houthis’ Justification In their statement, the Houthis framed the attack as retaliation for Israel’s military actions in Gaza, which they characterized as indiscriminate bombings resultin...
Post a Comment
Read more

Fall of Assad is a Blow to Russia's Prestige

The potential fall of Syrian President Bashar al-Assad, a long-standing ally of Russia, would mark a turning point in Moscow’s global influence, particularly in the Middle East. Steve Rosenberg’s analysis underscores the profound implications for Russia, which has invested heavily—both militarily and politically—in ensuring Assad’s survival over the past decade. This article delves into why Assad’s downfall would strike at the core of Russian prestige and what it could mean for the broader geopolitical landscape. Russia's Strategic Commitment to Syria Since the outbreak of the Syrian civil war in 2011, Russia has been a staunch supporter of Assad's regime. In 2015, Moscow launched a military intervention that proved decisive in stabilizing Assad’s hold on power. This intervention solidified Russia's role as a key power broker in the Middle East and demonstrated its willingness to project military power far beyond its borders. Syria is not just an ally for Russia; it is a...
Post a Comment
Read more

Fire: UniJos Senate convenes emergency meeting on Monday

Fire at the University of Jos Library University of Jos is to convene an emergency senate meeting on Monday to review the level of damage done to the institution by the Saturday night inferno. The Vice Chancellor, Prof. Sebastian Maimako, disclosed this on Sunday after inspecting areas affected by the incident. The fire, which lasted for more than six hours, destroyed the Library Complex that equally houses the faculties of management and social sciences. The fire also destroyed examination scripts, books and very crucial materials. Consequently, the vice-chancellor said “the Senate will meet tomorrow (Monday) to take a decision about the unmarked examination scripts that were burnt.” On the cause of the inferno, Maimako said investigation had commenced, adding that “nothing has been confirmed yet. We are still investigating.” The vice chancellor said the school was already working with federal authorities toward establishing a main fire station since the mini fire station in t...
Post a Comment
Read more