Nigeria’s NNPC reports trading losses, boost refining capacity by 29%

Date:

The Nigerian National Petroleum Corporation (NNPC) has reported a reduced trading deficit on its operations for the month of January 2017, noting that its deficits came down to N14.26 billion from the N17.01 billion its recorded in December 2016.

Thank you for reading this post, don't forget to subscribe!

The corporation also noted that the combined installed capacity utilisation of its refineries in Port Harcourt, Warri and Kaduna increased by about 29 percentage points in January 2017 when compared with their performances in December 2016.

According to the latest monthly financial and operations report of the NNPC for the month of January, the capacity utilisation of the refineries rose to 36.73 per cent in January 2017 as against 7.55 per cent in the previous month of December 2016.

The report was released in Abuja yesteday by the corporation. It ascribed the improvement to the implementation of the 12 Business Focus Areas (BUFA) strategy introduced by the Group Managing Director of the NNPC, Dr. Maikanti Baru.

According to the report, the refineries benefitted from the introduction of a new Refineries Business Model under the 12 BUFAS strategy which has transformed them from “tolling plants to merchant plants” thereby placing them on the path of profitability.

It said it recorded a N2.75 billion reduction in its trading deficit in the period under review, thus putting the total trading deficit at N14.26 billion.

“This represents about 16.19 per cent improvement compared to N17.01 billion recorded in December 2016, in spite of the corporation’s challenging situations which limit its aspiration to profitability,” said the report.

NNPC explained that the Port Harcourt Refining Company (PHRC) and Warri Refining and Petrochemical Company (WRPC) posted surpluses of N5,115,000,000 and N404, 000,000 respectively.

It stated that under the new refinery model, each refinery purchases crude oil at export parity price, processes and sells the corresponding products on its own account.

“This is different from the previous ‘Tolling Plant’ model where the refinery does not take title to the crude, but rather charges a tolling/processing fee to the owner of the crude which was PPMC on behalf of the corporation,” the report stated.

Apart from PHRC and WRPC, NNPC said five other of its subsidiaries also posted surpluses. These, it added include the Nigerian Petroleum Development Company (NPDC), the Nigerian Gas Pipelines and Transport Company (NGPTC), NNPC Retail, the National Engineering and Technical Company (NETCO), and the Integrated Data Services Ltd (IDSL).

According to the document which is the 18th in the series of NNPC’s monthly reports since it began publishing its business transactions, some of the factors that impeded the corporation’s performance include the production shutdown of the Trans Niger Pipeline and Nembe Creek Trunkline due to leakages, the shutdown of Agbami Terminal for a mini turnaround maintenance, and the subsisting force majeure declared by Shell Petroleum Development Company (SPDC) as a result of the vandalized 48-inch Forcados export line after its restoration in October 17, 2016.

Peter Okafor
Peter Okaforhttp://Naija247news.com
Peter Okafor Financial Journalist | Editor | Contributor Overview: Peter Okafor is a seasoned Financial Journalist, astute Editor, and valued Contributor at Naija247news Media Group. With an unwavering passion for dissecting complex financial landscapes, Peter has become a trusted name in delivering incisive and insightful coverage of economic events, market trends, and corporate dynamics. Professional Journey Peter's journey in financial journalism has been marked by a commitment to excellence. Joining the ranks of Naija247news, he has consistently demonstrated a keen understanding of the intricate interplay between finance and the global socio-economic fabric. Expertise: Specializing in financial markets, economic analyses, and business developments, Peter Okafor has honed his expertise over the years. His ability to unravel intricate financial narratives and present them in a comprehensible manner sets him apart in the world of financial journalism. Contributions As an Editor and Contributor, Peter has played a pivotal role in shaping the narrative of Naija247news. His contributions extend to thought-provoking articles, in-depth market analyses, and coverage of key events that impact the financial landscape. Educational Background: Peter holds a degree in Journalism, complemented by specialized courses in Finance and Business Reporting. His educational foundation has provided him with the tools to navigate the intricate world of financial journalism. Innovation and Adaptability: In an era of evolving media landscapes, Peter Okafor exemplifies innovation and adaptability. Leveraging digital platforms and emerging technologies, he ensures that financial insights reach a diverse audience, fostering financial literacy and awareness. Awards and Recognition: Peter's commitment to journalistic excellence has not gone unnoticed. He has been the recipient of several awards, recognizing his outstanding contributions to the field of financial journalism. Vision for the Future: Looking ahead, Peter Okafor envisions a future where financial journalism continues to empower individuals, shape economic policies, and drive positive change. His dedication to staying at the forefront of financial news underscores his commitment to this vision. Connect with Peter Okafor: - LinkedIn: [Peter Okafor](#) - Twitter: [@PeterOkafor_N247](#) In the dynamic realm of financial journalism, Peter Okafor stands as a stalwart, combining experience, expertise, and a forward-looking vision to illuminate the path of financial understanding for a global audience.

Share post:

Subscribe

Popular

More like this
Related

“AfDB Invests $75 Million in Indorama for Fertilizer Expansion”

The African Development Bank has inked a $75 million...

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...

Thirteen Residents Arrested For Failing To Use Pedestrian Bridge in Lagos

March 28, 2024. Azonuchechi Chukwu. Thirteen residents in Lagos state have...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading