The Nigerian National Petroleum Corporation (NNPC) recorded a loss of $1.6 billion at the end of January, keeping up with the corporation’s annual record of minus figures, latest figures of unaudited results released by the company reveal.
In three years, the government-owned company has been bleeding cash.
According to information on the company’s website, it has lost N546.63 billion between 2015 and 2017.
The corporation’s operations reports revealed that NNPC reported losses of N267.14 billion, N197.49 billion and N82 billion in 2015, 2016 and 2017, respectively. Contrarily, its budgets showed operating surpluses of N466.94 billion, N334.04 billion and N601.15 billion for the three years under review.
Annalysts from Eko bank Transnational INC say the trend of losses are expected to continue. Their prediction is supported by the expected loss that will be recorded by the refineries and fuel retail arm of the corporation. NNPC is paying at least N60 on every litre of petrol brought into the country, a payment it defines as "under recovery".
Its refineries combined to produce only 10 per cent or 1.05 billion of the 14.96 billion littres of petrol consumed in the country last year.
Most of that importation was done by the corporation, who then sold at a loss of N145. Worse still, Shell Petroleum Development Company (SPDC) temporarily halted shipment of Nigeria’s favoured crude grade — Bonny Light. It declared Force Majeure — inability to continue with a contract due to a fault in the Nembe Creek Trunkline, which is used to move petroleum to the Bonny export terminal. The Trans Niger Pipeline is also used to move crude to the terminal. Operators of the pipeline, Iteo E and P, say they noticed a drop in pressure an decided to shot down the pipeline.
“We are suspecting sabotage but it is too early to conclude as investigation is still ongoing,” an official of the company told Thisday. While the Nembe Trunkline got shot in Eastern Niger Delta, the Trans Forcados Pipeline in the Western part, was also sealed off.
The shutdown of TFP causes a loss of 250,000 bpd. While Nigeria’s oil company continues to endure losses, the oil firms in Norway, Saudi Arabia and Mexico, are enjoying the dividend of higher oil prices.