The Nigerian National Petroleum Corporation (NNPC) has revealed that its three refineries reported a combined operating loss of N154 billion, with the Kaduna refinery bringing in zero revenue in 2018.
This was contained in the national oil company’s audited financial statements for 2018 published on its website in a bid to improve transparency around its operations.
The NNPC has been criticised for years of mismanaging Nigeria’s oil business which it does by publishing only unaudited financial reports.
The statements published on the company’s website on Friday were for 2018 and were signed by the Group Managing Director, Mr Mele Kyari, who has taken steps to make things right under his watch.
The NNPC three refineries located in Port Harcourt, River State; Warri, Delta State; and Kaduna, Kaduna State all incurred N154 billion loss.
The Port Harcourt refinery recorded a N45 billion loss for the year 2018, while the Warri refinery amassed a N44 billion loss with the Kaduna refinery, which spent N24 billion in direct costs, generated zero revenue and had an operating loss of N64 billion for 2018.
NNPC also published audited accounts online of its 20 subsidiaries and business divisions for the first time.
According to the audited figures, the NNPC reported revenue of N5.04 trillion ($13 billion) in 2018 and profit of N1.01 trillion. In the previous financial year of 2017, the arms of NNPC printed a loss of N1.65 trillion.
The report shows total assets managed by NAPIMS stood at N18.6 trillion, with the oil and gas components valued at N14.2 trillion.
This showed that National Petroleum Investment Management Services (NAPIMS) is the group’s most profitable division, according to the statements.
Its oil production subsidiary, the Nigerian Petroleum Development Company (NPDC), reported a post-tax profit of N179 billion in 2018.
NNPC, however, did not publish the consolidated audited accounts for the group for the year released.
