Oil Prices Boost NNPC’s Profit to N63.73bn in Four Months

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Pipeline vandalism down to 82 in May from 125 in April

Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) has leveraged the continuing rise in crude oil prices to earn profits worth N63.73 billion from its operations between February and May of 2018, the corporation’s financial and operations reports for the four months have indicated.

On the issues of product theft and pipeline breaks, the NNPC’s report showed a steady drop in the number of recorded cases of pipeline vandalism from 125 in April to 82 in May.

The report indicated that the NNPC started closing its monthly trade with surpluses in February, and continued even into May – the last month of the report.

The report showed that within the four months NNPC earned N63.73 billion as profit.

It earned N16.72 billion in February; N11.73 billion in March; N17.16 billion in April and N18.12 billion in May.

Despite these profitable returns within the months, the reports however showed the corporation still recorded consistent trading deficits in five of its subsidiaries which included its Ventures Strategic Business Unit; the Port Harcourt Refinery; Warri Refinery; Kaduna Refinery; and its corporate headquarters, all of which have been its loss-making centres.

In the May report, the NNPC stated that total export receipt of $343.08 million was recorded as revenue against $447.58 million received in April 2018.

It added that the contribution from crude oil amounted to $244.71 million while gas and miscellaneous receipt stood at $75.65 million and $22.72 million respectively

Of the export receipts, the NNPC said $105.17 million was remitted to Federation Account while $237.91 million was remitted to fund the Joint Venture (JV) cost recovery for the month of May, 2018 to guarantee current and future production.

Cumulatively, it said: “Total export crude oil and gas receipt for the period May 2017 to May 2018 stood at $4.91 billion. Out of which the sum of $3.52 billion was transferred to JV Cash Call as first line charge and the balance of $1.40 billion was paid into Federation Account.”

On product theft and pipeline breaks, NNPC’s report showed a steady drop in the number of recorded cases of pipeline vandalism. It however said the development remained a challenge to it.

“Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position. A total of 1621 vandalised points have been recorded between May 2017 and May 2018.

“In May 2018, pipeline break stood at 82, of which 20 pipeline points either failed to be welded or ruptured/clamped. Thus 62 pipeline points were vandalised as against 125 recorded last month. PHC-Aba and Aba-Enugu pipeline segment accounted for 46 points or 74 per cent of the vandalised pipeline,” the May report added.