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NNPC lost N197.7bn in 2016 operations

By on February 18, 2017

The Nigerian National Petroleum Corporation (NNPC) recorded losses in its operations for most part of 2016 despite a massive restructuring that was supposed to put it on the path of profitability.

Analysis of the corporation’s financial and operations report for the twelve-month period between January and December showed that NNPC posted N197.7 billion cumulative deficit for 11 months in 2016.

According to the report obtained on the NNPC website on Thursday, the corporation only reported an operating profit of N274 million in May, the first time in over 15 years and after ten months under former boss Dr. Ibe Kachikwu.

The trading surplus was as a result of increase in pump price of petrol in May but the NNPC failed to sustain the profit-making streak.

A breakdown of the report showed that the Corporation launched 2016 with a trading deficit of N3.55bn in January 2016, N24.23bn in February, N18.89bn in March and N19.43bn in April.

After posting N270m profit in May it returned to loss making in June with N26.50bn. Losses recorded in subsequent months included: July N24.18bn, August N11.22bn, September 17.18bn and October N16.85bn.

After rising to N18.72bn in November its losses lowered by N1.71bn to N17.01bn in December, the report also showed.

The Corporation had in 2016 severally blamed most of its deficits on challenging situations which it said limited its aspiration to profitability.

In 2016, renewed and vigorous vandalism of pipelines in Niger Delta meant that productions were shut-in and cargoes deferred, which denied revenues streams accruing to NNPC and the federation.