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NNPC’s refineries monthly report indicates production drop, rising losses

The Nigerian National Petroleum Corporation (NNPC) has released refineries progress report for the month of May which shows marginal drop in both product outputs and revenue within the month of May when compared with April.

It would be recalled that the Corporation had since January, adopted a merchant plant refineries business model that takes cognisance of the products worth and crude costs. Total petroleum products production by the refineries in May, amounted to 222.02 million litres compared to 232.71 million litres in April.

The Group operating revenue for April and May were put at ₦322.19 billion and ₦307.87 billion respectively, representing 87.62 per cent and 83.72 per cent respectively of its monthly budget. “Similarly, operating expenditure for the same periods were ₦327.47 billion and ₦311.42 billion respectively, which also represent 103.09 per cent and 98.04 per cent of budget for the months respectively,” NNPC added.

The report showed that Port Harcourt Refining Company Limited, Port Harcourt Refineries Corporation (PHRC); Kaduna Refining and Petrochemicals Company Ltd. (KRPC); and Warri Refining and Petrochemicals Company Ltd. (WRPC) realised N62 billion from refined products in May 2017.

The Nigerian National Petroleum Corporation (NNPC), which made this known in its monthly report released on Tuesday, said that

According to NNPC, the associated crude plus freight costs and operational expenses were ₦50.01 billion and ₦9.31 billion respectively.

The implication of the figure means that an operating surplus of ₦2.68 billion by the refineries was achieved. The refineries combined capacity utilisation was 23.09 per cent with PHRC recording the highest level of 34.29 per cent during the period under review.

The report revealed that “A total of 1,204.30 million litres of white products were distributed and sold by PPMC in the month of May 2017 compared with 1,663.35 million litres in the month of April 2017. This comprised of 1,071.76 million litres of PMS, 49.71 million litres of Kerosene and 82.83 million litres of Diesel”.

“Total sale of white products for the period May 2016 to May2017 stood at 15.13 billion litres, PMS amounted to 13.20 billion litres and accounts for 87.24 per cent.

“While total special products for the month of May 2017 was 34.24 million litres comprising of 27.72 million litres of LPFO and 6.51 million litres of other special products.”

“A total sale of ₦145.78 billion was made on the petroleum products for white products by Pipelines and Product Marketing Company limited, (PPMC) in the month of May 2017 compared with ₦199.11 billion sold a month earlier.

The report also put total revenues generated from the sale of white products from May 2016 to May 2017, at ₦1,790.82 billion, where petrol contributed about 85.37 per of the total sales with a value of about ₦1. 53billion.