Local refineries post N69b loss without processing crude oil
By Jeph Ajobaju, Chief Copy Editor
Two of Nigeria’s refineries shed 218 workers and all three combined lost N69.03 billion in 2021, the Nigerian National Petroleum Company (NNPC) said its latest financial statement, which gave account of its management of the refineries.
They are Kaduna Refining and Petrochemical Company (KRPC), Warri Refining and Petrochemical Company (WRPC), and Port Harcourt Refining Company (PHRC).
Muhammadu Buhari votes billions of naira for their turn around maintenance (TAM) every year, but none has functioned in all his seven years as both President and Petroleum Minister.
KRPC reduced its workforce by 105 workers, WRPC downsized by 113. There was no mention of staff reduction at PHRC.
KRPC posted N22.89 billion loss, WRPC N19.63 billion, PHRC N26.51 billion.
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Kaduna Refinery
KRPC said one major area of challenge is low operational funding, and it reduced its workforce from 630 in the first quarter of 2021 (Q1 2021) to 580 (Q2 2021), 551 (Q3 2021), and 525 (Q4 2021), a cumulative reduction of 105 workers in 2021.
It disclosed in the report by the NNPC that no crude oil was received or processed the entire year due to preparation for its upcoming rehabilitation, per reporting by The PUNCH.
KRPC “posted an operational loss before tax of N36.66 billion which represents an increase of 29.83 per cent from N28.23 billion in 2020.
“This was largely due to a surge in depreciation charges as more fixed assets were transferred from CHQ (Corporation’s Headquarters) during the period under review.
“However, adjusting for other comprehensive income, the company posted a total comprehensive loss of N22.89 billion as against N55.77 billion in 2020 representing a decrease of 58.96 per cent in its loss performance.
“It is important to state that the decrease in loss after tax is due to the reduction in general and administrative expenses.”
The asset base of KRPC rose 952 per cent from N20.5 billion in 2020 to N195.3 billion in 2021, according to the report.
Warri Refinery
Total comprehensive loss by WRPC was N19.63 billion, down from N44.13 billion in 2020.
The workforce slashed from 444 in 2020 to 331 in 2021, a reduction of 113 workers.
Port Harcourt Refinery
Total comprehensive loss by PHRC was N26.51 billion, down from N53.18 billion in 2020.
Reaction by PETROAN
Petroleum Products Retail Outlets Owners Association (PETROAN) National President Billy Gillis-Harry said the group is ready to partner Abuja to develop both modular and large-scale refineries.
“The government must fix refineries and many times we have made it open that we are ready to partner the government in getting these assets running as fast as possible. This will help to stop petrol imports and cut down on subsidies,” he stressed.