NNPC returns to losing ways as Kaduna refinery produces at zero percent – The Cable

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The Nigerian National Petroleum Corporation (NNPC) has returned to operating losses in June, after recording a N274 million surplus in May 2016.

While refining capacity fell to a new low, the corporation lost N26.505 billion in June but paid N55.96 billion into the federation account.

According to NNPC’s June financial statement, NNPC lost N4.69 billion to the country’s underwhelming refineries.

Warri and Port Harcourt refineries produced at 24.4 percent and 11.8 percent capacity, while Kaduna refinery produced at zero percent, for the month of June.

The report indicates “a deficit of N26.51 billion as against trading surplus of N274million reported in May, 2016. This trading surplus does not represent net profit as there are other expenses that should ordinarily have been captured”.

“The deficit in the month of June 2016 was majorly due to decrease in revenue generation as a result of decline in PPMC petroleum products sales by 13.30% or N14.9billion and increase in products distribution costs.

“Also June 2016 operations witnessed the major impact of incessant vandalism, during the month more than 261 vandalized points were recorded.

Read more at https://www.thecable.ng/nnpc-returns-to-losing-ways-as-kaduna-refinery-produce-at-zero-percent