NNPC Records N17.18bn Loss In September

The Nigerian National Petroleum Corporation (NNPC) has reported a trading deficit of N17.18 billion for the month of September 2016, translating to 46 per cent increase in deficit value when compared with N11.22 billion deficit reported in August 2016.

The Corporation blamed the declining financial performance on decrease in revenue generation from the

sales of petroleum product which was said to have dropped by 20.69 per cent or N27.36 billion. It added that it has been operating under a challenging environment which limits its aspiration to profitability.

This is contained in the NNPC’s monthly financial and operations report for September 2016 and released yesterday.  Part of the report reads: “a trading deficit of 17.18 billion was recorded for the month under review as against the reported August, 2016 trading deficit of 11.22 billion.”

It explained that, “the higher deficit in the month of September 2016 was due to decrease in revenue generation which is attributed to net decline in PPMC petroleum products sales by 20.69 per cent or 27.36 billion.”

According to the report, the corporation’s group operating revenue and expenditure for September declined to 157.89 billion compared with 181.53 billion reported for the month of August. It stated that the figures translates to achieving 66.47 per cent and 76.42 per cent of its monthly budget in the month of September and August respectively.

Similarly, operating expenditure for the same periods were 175.09 billion and 192.75 billion respectively, which also represents 83.49 per cent and 91.92 per cent of its budget for both months, accordingly.

NNPC stated that its subsidiary, the Nigerian Petroleum Development Company Limited (NPDC) could not realize substantial portion of over 20.0billion of crude oil sales for the month due to pipelines vandalism.

It however assured the public that, “with restoration of NPDC production, NNPC can indeed post more impressive results. The corporation also said that it can indeed attain lofty heights with the support of Nigerians, especially in areas of security and infrastructural integrity.