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NNPC Posts N24 Billion Deficit in One Month

The Nigerian National Petroleum Corporation, NNPC, yesterday, announced a deficit of N24.18 billion for the month of July 2016, Vanguard reports.

The NNPC, in its Monthly Financial and Operations Report for July 2016, stated that compared to a loss of N26.51 billion recorded in June.

According to the report, ‎the deficit was in spite of an improvement in its operating revenue to N128.43 billion in the month of July, compared to a revenue of N118.39 billion in June 2016, and representing 49.84 per cent and 54.07 per cent respectively of monthly budget. The report said, ”Similarly, operating expenditure for the same periods were ₦144.9 billion and ₦149.97 billion respectively, which also represents 69.10 per cent and 72.78 per cent of budget for the months respectively.

“A deficit of N26.51billion and N24.18billion were recorded for the months of June and July 2016 respectively. The net cash flow improved by 8.77 per cent or N2.32billion in July 2016. This improvement was largely due to increase in revenue stream from NPDC and PPMC, despite the upsurge in upstream and downstream vandalized points.

“NPDC, substantial portion of crude oil sales for the month estimated to be in excess of N27 billion could not be realized due to Force Majeure declared by SPDC as a result of the vandalized 48-inch Forcados export line.” ‎

Commenting on the performance of the refineries, the NNPC, “The combined value of output by the three refineries, at import parity price, for the month of July 2016 amounted to ₦20.09 billion while the associated crude plus freight cost was ₦19.31 billion, giving a surplus of ₦0.780 billion after considering overhead of ₦7.38 billion.

“Despite these challenges, such as irregular crude supply and impact of pipeline vandalism, the domestic refineries have a consolidated positive cash flow for the month under review due to favorable products price variance and ongoing restoration of the refineries.‎”

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