Friday, July 08 2016 9:40AM /FBNQuest Research
The NNPC’s accounts for April show a group operating deficit of N19.4bn (US$69m), compared with N18.9bn in March. Both monthly revenue and expenditure were the lowest over the previous 12 months.
Revenue from the Nigerian Petroleum Development Company amounted to just N8.4bn, reflecting the sabotage of the Forcados export pipeline. The corporation estimates the shut-in at 380,000 b/d. The report also notes a decline in revenue at the Pipeline and Products Marketing Company, the supplier of last resort.
Over the 12 months to April, crude oil and gas accruals totaled US$3.78bn. These export proceeds were paid in full to meet cash call obligations to the NNPC’s joint-venture partners. This left nothing for the federation account.
The proceeds fell short of the obligations. The 2015 and 2016 federal budgets projected average monthly payments of US$620m and US$710m respectively. The report puts the current arrears at more than US$5bn, industry sources rather higher. The corporation is in talks with its partners about new funding arrangements.
Total group spending decreased by N5bn to N127bn in April despite a pick-up in restructuring costs at central headquarters (CHQ).
The corporation has trimmed its operational deficit from N267bn in 2015 to N66bn in January-April. Its progress has been slowed, however, by pipeline sabotage, the slide in the oil price and the costs of its reorganisation.