Connect with us

ECONOMY

NNPC closes 2017 with N82b deficit

Published

on

NNPC Group closed the 2017 full year operations with a budget deficit of N82 billion against its budgeted surplus of N601.16 billion for the year.

The corporation’s oil and gas report for December 2017, which contained the figures, shows that the group’s operations in December ended in a deficit of N6.37 billion, which is slightly lower than the monthly deficit of N6.79 billion incurred in November.

The group generated a total revenue of N3,711.8 billion in the 2017 full year, which is a clear N701 billion short of the targeted revenue figure of N4,412.8 billion for the year. Total expenses were however on target at N3,793.8 billion for the year, showing a slight deviation of under N18 billion from the expense budget provision.

The report, as analysed by TheCable Petrobarometer, shows that budget numbers could not be delivered across a number of subsidiaries and units of the NNPC group in 2017. The upstream operators were the only sub group of the corporation that delivered a budget surplus, which amounted to N198.6 billion for the year. That was however just a fraction of a budget surplus of N688.5 billion expected from the operators within the sub group for the year.

The upstream sub group generated a total revenue of N980 billion for the 2017 fiscal year, about 82% of the targeted figure of N1,199 billion. Its expenditure went far off target at N781.5 billion or 150% of the budgeted figure of N510.5 billion. NPDC led the expenditure budget deviation with its spending of N556.6 billion standing at 191% of budget provision.

The refineries generated combined revenue of N571.3 billion at the end of 2017, which is 65% of the revenue budget for the year. Port Harcourt refinery accounted for over 65% of the total revenue and delivered the only budget surplus of N20.7 billion from the sub group in the year.

Total expenditure for all the refineries amounted to over N604 billion at the end of 2017, resulting in a combined deficit of N32.8 billion. The report shows that Kaduna and Port Harcourt refineries, which were out of production in November, were back on stream in December with major improvements in revenue contribution.

NNPC’s retail operations, led by PPMC, posted an overall deficit of close to N100 billion at the end of 2017. That was more than nine times the provided deficit figure of N11 billion for the sub group for the year. The subsidiaries here operated within their expenditure budget of N2,328 billion but combined revenues failed to meet the targeted figure of N2,214.6 billion for the year.

Corporate headquarters was targeted to produce a budget deficit of over N188 billion for the year but it actually produced N131.9 billion. It operated well below its cost budget with actual expenditure of N132.86 billion amounting to 68.5% of the vote for the year. A deficit of N15.8 billion from ventures swelled the total deficit for the sub group to N147.8 billion.

The deficit recorded in December is one of the biggest monthly deficits for the NNPC group in 2017. This continued to reflect inability to grow revenue significantly ahead of expenses and this cuts across a number of subsidiaries and units of the corporation.

NPDC’s revenue continues to decline, even by a wider margin of 4% in December against 2.6% in November.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

ECONOMY

Nigeria signs 5,660km gas pipeline agreement with Morocco

Published

on

Nigeria has signed an agreement with Morocco for the construction of a 5,660km gas pipeline.
The agreement was signed on Sunday by President Muhammadu Buhari, who is currently on a working visit to the North African country, and Mohammed VI, king of Morocco.
Earlier in December 2016, both countries agreed on the pipeline and carried out feasibility studies.
“For economic, political, legal and security reasons, the choice was made on a combined onshore and offshore route,” Morocco’s national office of hydrocarbons and mines (ONHYM) and the Nigerian National Petroleum Corporation (NNPC) said in a joint declaration.
“The pipeline will be 5,660 kilometres (3,516.96 miles) long and its CAPEX has been defined,” the declaration said, adding that construction will last 25 years.
Both countries say they will launch a front-end engineering design (Feed) to involve countries that will be crossed by the pipeline and to determine the amount of gas available for export to Europe.
According to the declaration, funding for the project will come from development banks.
The project is expected to help West African countries meet their energy needs and boost Nigeria’s export potential to Europe.
At the same event, Uche Orji, managing director of Nigeria Sovereign Wealth Authority, and Mostafa Terrab, the CEO of the Management of Phosphate in Morocco, to build a plant for the production of ammonia and derivatives.

Continue Reading

Business

ECONOMY C’River residents panic as multiple kerosene explosions wreak havoc

Published

on

CALABAR- SERIES of kerosene explosions in Cross River Sate in recent weeks have caused indescribable disaster, leaving five persons dead and several others battling for their dear lives at health institutions in the state.

Nine of the victims are lying critically ill at the General Hospital, Calabar and four are at the University of Calabar Teaching Hospital, UCTH, both in Calabar, the state capital.

Family of 4, others perish

In one of the tragic incidents, a family of four, Mrs. Nseobong Uduak (mother), Miracle 10, Silas 3 and a two-month old baby, whose name could not be ascertained were seriously burnt, leading to their death.

Ogolo Eke, a 21-year-old Microbiology student of the Cross River State University of Technology, who was rushed to private hospital for burns suffered on her face and chest in an explosion, could not make it. Hardly a week passes without two or more cases of kerosene explosions in Calabar and other areas of the state caused chiefly by adulterated kerosene. The two-bedroom apartment occupied by Mrs. Uduak and her family was also razed and property worth millions of naira destroyed. Rachael Akpan, who witnessed the incident that razed Uduak’s rented apartment, blamed it on adulterated kerosene, which ignited as one of the deceased’s children, Miracle, was about filling the lantern with kerosene.

How my husband was burnt – Wife
In another incident, Emane, wife of Michael Eze, who also lives at 8 Miles, Calabar, asserted: “I bought the kerosene at a petrol station and had been using it until penultimate Sunday morning. I used the kerosene last in February to cook beans, but at about 5.00 am on Sunday, last week, the kerosene in our lamp ran out and my husband refilled it with the kerosene and when he tried to light it again, an explosion occurred. He was caught in the fire that resulted from the explosion.”

Continue Reading

ECONOMY

C’River residents panic as multiple kerosene explosions wreak havoc

Published

on

CALABAR- SERIES of kerosene explosions in Cross River Sate in recent weeks have caused indescribable disaster, leaving five persons dead and several others battling for their dear lives at health institutions in the state.

Nine of the victims are lying critically ill at the General Hospital, Calabar and four are at the University of Calabar Teaching Hospital, UCTH, both in Calabar, the state capital.

Family of 4, others perish

In one of the tragic incidents, a family of four, Mrs. Nseobong Uduak (mother), Miracle 10, Silas 3 and a two-month old baby, whose name could not be ascertained were seriously burnt, leading to their death.

Ogolo Eke, a 21-year-old Microbiology student of the Cross River State University of Technology, who was rushed to private hospital for burns suffered on her face and chest in an explosion, could not make it. Hardly a week passes without two or more cases of kerosene explosions in Calabar and other areas of the state caused chiefly by adulterated kerosene. The two-bedroom apartment occupied by Mrs. Uduak and her family was also razed and property worth millions of naira destroyed. Rachael Akpan, who witnessed the incident that razed Uduak’s rented apartment, blamed it on adulterated kerosene, which ignited as one of the deceased’s children, Miracle, was about filling the lantern with kerosene.

How my husband was burnt – Wife
In another incident, Emane, wife of Michael Eze, who also lives at 8 Miles, Calabar, asserted: “I bought the kerosene at a petrol station and had been using it until penultimate Sunday morning. I used the kerosene last in February to cook beans, but at about 5.00 am on Sunday, last week, the kerosene in our lamp ran out and my husband refilled it with the kerosene and when he tried to light it again, an explosion occurred. He was caught in the fire that resulted from the explosion.”

Continue Reading

Trending

%d bloggers like this: