Nigeria’s refineries incur N148billion operating deficit in 13months

The three Nigeria’s refineries in the space of 13 months, incurred a combined operation deficit of N148billion, a report has stated.

The refineries in Warri and Portharcourt had zero production between June 2019 and June 2020 except for Kaduna that utilized 8.4 per cent of its capacity in July 2019.

This was contained in the Nigerian National Petroleum Corporation (NNPC) Monthly Financial and Operations Report for June 2020.

According to the report, the total sum of operation expenses (OpEx) for Warri is N43bn while Portharcourt and Kaduna refineries recorded N47.2bn and N65.2bn respectively from total revenue of N10.4billion within the period.

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However, in June 2020, the three refineries, according to the report, did not process any crude while the combined yield efficiency is zero per cent.

It blamed this largely on the ongoing rehabilitation works in the refineries.

“The declining operational performance is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilization once completed,” it said.

Also, the Corporation said it has been adopting a Merchant Plant Refineries Business Model since January 2017 stating that the model takes cognizance of the Products Worth and Crude Costs.

It disclosed that the combined value of output by the three refineries (at Import Parity Price) for June 2020 amounted to approximated ₦0.04billion.

“No associated crude plus freight cost for the three refineries since there was no production,” it said.

It added that the operational expenses for the month amounted to ₦10.27billion; “This resulted in an operating deficit of ₦10.23billion by the Refineries.”

 

 

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