NNPC’s Refineries Record Losses for Nine Consecutive Months

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The three refineries belonging to the Nigerian National Petroleum Corporation (NNPC) recorded losses for nine consecutive months, the corporation said in its September financial results.

According to the report, the refineries lost N111.27 billion from January to September 2019, compared to a loss of N96.31 billion recorded in the same period in 2018.

They lost N8.362billion in January; N10.26 billion in February; N16.04 billion in March; N11.44 billion in April; N13.63 billion in May, and N17.42 billion in June.

The plants recorded a loss of N13.84 billion in July; N13.21billion in August and N7.07billion in September.

Kaduna refinery, which did not process any crude in eight months, lost N44.06 billion, according to the NNPC.

Warri Refinery lost N33.88billion as it did not process any crude oil in April, June, July, August and September.

Port Harcourt refinery lost N33.31bilion as it was idle in January, April, May and June, July, August and September.

“Similar to August 2019, no white product (petrol and kerosene) was produced in September 2019. The lack of production is due to ongoing rehabilitation works at the refineries,” the corporation said.

It said the combined value of output by the three refineries (at import parity price) for September amounted to N1.03 billion.

“No associated crude plus freight cost for the three refineries since there was no production while operational expenses amounted to N11.24 billion.

“This resulted in current operating deficit of N10.20 billion and an adjusted deficit of N7.07billion by the refineries; after adjusting for prior overstated deficits by PHRC.”