*Refineries record losses of N154 billion
Nigerian National Petroleum Corporation (NNPC) has officially
released, for the first time, its audited statement of accounts to
the public.
Though the corporation has been sending copies of the annual
statements to the presidency and the National Assembly in the past,
it was learnt that the new initiative followed a resolve by the new
management to promote transparency in its operations.
However, the 43-year organisation, in its 2018 audited
statement, on its website, did not present a consolidated report of
its activities as a unit.
But it made public the accounts of its listed subsidiaries – 20
in all, including companies floated offshore for the corporation’s
international business.
NNPC’s decision has also received commendation from
stakeholders, including BudgIT, a Non-Governmental Organisation
(NGO) in the country that applies technology to intersect citizen
engagement with institutional improvement, describing the Mele
Kyari-led NNPC management as having blazed the trail to reduce
opacity in government business.
While some of the subsidiaries made losses during the period
under review, many of them, however, bounced back after years of
negative figures, to the path of profitability.
For one of the companies, the Integrated Data Services Limited
(IDSL), which provides hydrocarbon exploration services, revenue
increased significantly by about N1.3 billion or 7.76 per cent in
2018 from 2017, with total comprehensive income of about N3.2
billion in the same period as a result of actuarial gain.
However, actual profit was N154 million compared to 2017 with
just over N4 million, for the company that offers upstream sector
geophysical and petroleum engineering services in the oil and gas
industry.
It has 17 major customers, including the International Oil
Companies (IOCs) with a staff strength of 197 in 2017 as compared
to 192 in 2018.
For the National Petroleum Investment Management Services
(NAPIMS), which executes joint operations and other exploration and
production activities for NNPC and oversees the federation’s
interest in the joint operating agreements in 2017, total revenue
stood at N3.2 trillion and increased to N5 trillion in 2018. But it
wiped off its loss, which stood at N1.6 trillion in 2017, and
turned in N1 trillion gain in 2018.
Kaduna Refining and Petrochemical Company Limited (KRPC), in
2018, had an operating loss of N64.5 billion compared to N112
billion in 2017, with total comprehensive loss put at N111.8
billion in 2017 which decreased to N64.3 in 2018.
The Wheel Insurance, another of its subsidiaries, experienced a
decrease in insurance liabilities from $9 million in 2017 to $8.2
million in 2018. The company recorded a net cash from operating
activities from $2.3 million in 2017 to $7 million in 2018.
As for the Petroleum Products Marketing Company Limited (PPMC),
engaged in the supply and marketing of refined petroleum products,
the company made a total comprehensive income of N11 billion in
2018, as against a loss of N42.5 billion in 2017.
The Port Harcourt Refining Company made a loss of N45.5 billion
in 2018, down from N55.7 billion in 2017.
Nidas Shipping Services (NSS), a subsidiary of the national oil
company, which provides marine transportation, incurred an
operating loss of $1.4 million in 2018.
For the Nigerian Pipelines and Storage Company Limited (NPSC),
which is into transportation and storage of products, the loss
before taxation in 2018 was N767 million, while total income for
the year was N11.2 billion. There were no figures for 2017.
As for the National Engineering and Technical Company Limited
(NETCO), which provides engineering, procurement, construction,
supervision and project management services in the sector, profit
for 2017 after tax was N2.4 billion against 4.5 billion in
2018.
Duke Global Energy Investments Limited, carrying out the
business of oil prospecting, production, mining, drilling, storage,
transportation, refining and distribution of oil and gas of all
types of hydrocarbons and petroleum products, had an authorised
share N100 million during the period.
It made a loss of N41.6 million in 2018 as against N85,828
million in 2017, while Duke Oil Services, UK grew from $5 million
dollars from 2017 to $5.9 in 2018 in terms of cash and equivalent
at the end of the year.
In the period under review, the company did not have any
contractual employees as staff were provided to the company by
other group entities under service agreements.
Meanwhile, NNPC has received accolades from BudgIT “for
publishing the audited accounts of its subsidiaries and business
divisions for the first time and also launching the Open Data
segment on its website, as a measure to promote transparency in its
financial operations.”
The organisation through its Communications Associate, Iyanu
Fatoba, said there was no doubt that the Kyari-led NNPC management
had blazed the trail by making the audited report of all NNPC’s
subsidiaries available online.
“For the past four years, BudgIT, through the Extractives
Consultative Forum and with support from the Natural Resource
Governance Institute (NRGI), has been engaging key oil and gas
stakeholders annually; including officials from NNPC, Department of
Petroleum Resources, Ministry of Petroleum Resources, civil society
organisations and private individuals.
“These engagements have centred on ways by which NNPC can become
more transparent, assume and maintain the status of a commercially
viable entity, as its consecutive losses are not sustainable in the
long term.
“A financially viable and transparent NNPC is pivotal to the
Nigerian economy as the government still largely depends on revenue
from oil to finance its budgets.
“Over the years, BudgIT has consistently requested that NNPC
should make its audited report available to citizens in addition to
publishing its monthly financial and operations reports, to further
ensure transparency and accountability,” the organisation said.
It encouraged Nigerians to download the audit reports and other
data put up by NNPC, study them, and ask questions.
A Project Officer at BudgIT, Adejoke Akinbode, however, noted
that while these are important steps regarding transparency, more
still had to be done by the federal government to reform NNPC.
“The federal government needs to reform NNPC to reverse the trend
of the massive losses recorded by some of the NNPC subsidiaries
annually. This audit report is a laudable step towards showing
Nigerians the true picture of what is going on in NNPC,” the group
noted.
*Refineries record losses of N154 billion
Nigerian National Petroleum Corporation (NNPC) has officially
released, for the first time, its audited statement of accounts to
the public.
Though the corporation has been sending copies of the annual
statements to the presidency and the National Assembly in the past,
it was learnt that the new initiative followed a resolve by the new
management to promote transparency in its operations.
However, the 43-year organisation, in its 2018 audited
statement, on its website, did not present a consolidated report of
its activities as a unit.
But it made public the accounts of its listed subsidiaries – 20
in all, including companies floated offshore for the corporation’s
international business.
NNPC’s decision has also received commendation from
stakeholders, including BudgIT, a Non-Governmental Organisation
(NGO) in the country that applies technology to intersect citizen
engagement with institutional improvement, describing the Mele
Kyari-led NNPC management as having blazed the trail to reduce
opacity in government business.
While some of the subsidiaries made losses during the period
under review, many of them, however, bounced back after years of
negative figures, to the path of profitability.
For one of the companies, the Integrated Data Services Limited
(IDSL), which provides hydrocarbon exploration services, revenue
increased significantly by about N1.3 billion or 7.76 per cent in
2018 from 2017, with total comprehensive income of about N3.2
billion in the same period as a result of actuarial gain.
However, actual profit was N154 million compared to 2017 with
just over N4 million, for the company that offers upstream sector
geophysical and petroleum engineering services in the oil and gas
industry.
It has 17 major customers, including the International Oil
Companies (IOCs) with a staff strength of 197 in 2017 as compared
to 192 in 2018.
For the National Petroleum Investment Management Services
(NAPIMS), which executes joint operations and other exploration and
production activities for NNPC and oversees the federation’s
interest in the joint operating agreements in 2017, total revenue
stood at N3.2 trillion and increased to N5 trillion in 2018. But it
wiped off its loss, which stood at N1.6 trillion in 2017, and
turned in N1 trillion gain in 2018.
Kaduna Refining and Petrochemical Company Limited (KRPC), in
2018, had an operating loss of N64.5 billion compared to N112
billion in 2017, with total comprehensive loss put at N111.8
billion in 2017 which decreased to N64.3 in 2018.
The Wheel Insurance, another of its subsidiaries, experienced a
decrease in insurance liabilities from $9 million in 2017 to $8.2
million in 2018. The company recorded a net cash from operating
activities from $2.3 million in 2017 to $7 million in 2018.
As for the Petroleum Products Marketing Company Limited (PPMC),
engaged in the supply and marketing of refined petroleum products,
the company made a total comprehensive income of N11 billion in
2018, as against a loss of N42.5 billion in 2017.
The Port Harcourt Refining Company made a loss of N45.5 billion
in 2018, down from N55.7 billion in 2017.
Nidas Shipping Services (NSS), a subsidiary of the national oil
company, which provides marine transportation, incurred an
operating loss of $1.4 million in 2018.
For the Nigerian Pipelines and Storage Company Limited (NPSC),
which is into transportation and storage of products, the loss
before taxation in 2018 was N767 million, while total income for
the year was N11.2 billion. There were no figures for 2017.
As for the National Engineering and Technical Company Limited
(NETCO), which provides engineering, procurement, construction,
supervision and project management services in the sector, profit
for 2017 after tax was N2.4 billion against 4.5 billion in
2018.
Duke Global Energy Investments Limited, carrying out the
business of oil prospecting, production, mining, drilling, storage,
transportation, refining and distribution of oil and gas of all
types of hydrocarbons and petroleum products, had an authorised
share N100 million during the period.
It made a loss of N41.6 million in 2018 as against N85,828
million in 2017, while Duke Oil Services, UK grew from $5 million
dollars from 2017 to $5.9 in 2018 in terms of cash and equivalent
at the end of the year.
In the period under review, the company did not have any
contractual employees as staff were provided to the company by
other group entities under service agreements.
Meanwhile, NNPC has received accolades from BudgIT “for
publishing the audited accounts of its subsidiaries and business
divisions for the first time and also launching the Open Data
segment on its website, as a measure to promote transparency in its
financial operations.”
The organisation through its Communications Associate, Iyanu
Fatoba, said there was no doubt that the Kyari-led NNPC management
had blazed the trail by making the audited report of all NNPC’s
subsidiaries available online.
“For the past four years, BudgIT, through the Extractives
Consultative Forum and with support from the Natural Resource
Governance Institute (NRGI), has been engaging key oil and gas
stakeholders annually; including officials from NNPC, Department of
Petroleum Resources, Ministry of Petroleum Resources, civil society
organisations and private individuals.
“These engagements have centred on ways by which NNPC can become
more transparent, assume and maintain the status of a commercially
viable entity, as its consecutive losses are not sustainable in the
long term.
“A financially viable and transparent NNPC is pivotal to the
Nigerian economy as the government still largely depends on revenue
from oil to finance its budgets.
“Over the years, BudgIT has consistently requested that NNPC
should make its audited report available to citizens in addition to
publishing its monthly financial and operations reports, to further
ensure transparency and accountability,” the organisation said.
It encouraged Nigerians to download the audit reports and other
data put up by NNPC, study them, and ask questions.
A Project Officer at BudgIT, Adejoke Akinbode, however, noted
that while these are important steps regarding transparency, more
still had to be done by the federal government to reform NNPC.
“The federal government needs to reform NNPC to reverse the trend
of the massive losses recorded by some of the NNPC subsidiaries
annually. This audit report is a laudable step towards showing
Nigerians the true picture of what is going on in NNPC,” the group
noted.