The Nigerian National Petroleum Corporation (NNPC) has announced that the state owned refineries produced zero percent for the month of October, as it has continued on a losing streak generating a loss of N184.2bn in the past four months.
According to TheCable reports, the NNPC financial operation monthly report for October, N88.48bn – the highest in the past four months – was remitted to the federation account by the corporation.
Despite producing at zero percent capacity, the refineries generated a loss of N1.45bn in October, falling from N8.84bn in September.
The report read: “Total crude processed by the three refineries, in the month of October 2015 was zero. However, 92,332 MT of unfinished product was processed which translates to a combined yield efficiency of 78.93%.”
“The combined value of output by the three refineries (at import parity price) for the month of October 2015 amounted to N5.49billion while the associated Crude plus freight cost was zero, giving a loss of N1.45 billion after considering overhead of N6.94 billion.”
The NNPC blamed its losses on subsidy claims, pipeline vandalisation product loses and refinery operations.
The report added that: “NNPC deficit of N240.99bn is mainly accounted for by claimable pipeline repairs/management cost of N86.69Bn and crude and product losses of N53.55bn due to vandalized pipelines.
“The N80.87Bn deficit attributable to PPMC was arrived at after adjusting for an estimated claimable subsidy of N276.81Bn from the petroleum products sales.”
The NNPC vowed that the refineries would be shut down in December, for a whole year, if they fail to meet up with optimum performance by December.