“NNPC is committed to continuing to support the sustenance of its operations through adequate funding”
*Sets 2023 deadline to exit loss
The management of Port Harcourt Refining Company (PHRC), the midstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), said the retained losses of the company has risen to N509.737 billion as at December 31st, 2020, growing by 5.96 per cent from N481.062 billion as at the same period in 2019.
According to its 2020 audited financial statement, this was as a result of the losses of N28.67 billion recorded from normal operating activities in its 2020 financial year, compared to a loss of N46.95 billion.
However, the company said it recorded a total comprehensive loss of N53.179 billion in 2020, rising from N50.53 billion recorded in 2019.
The company posted zero revenue for 2020, yet it recorded processing expenses of N12.35 billion, compared with N22.22 billion in 2019; and administrative expenses of N19.215 billion, compared with N25.19 billion in 2019.
Providing explanations for the loss, it said: “The losses have arisen principally from the inability of the company to refine single drop of crude in year 2020 and other previous years in quantities and at rates above its break even points, hence it was unable to earn enough revenue to cover its costs.”
However, the company set a 2023 target for a cessation of the recurring loss, while it noted that the Federal Government and the NNPC had commenced moves to stem the tide of its woeful financial performances.
It said: “However, the parent company, Nigerian National Petroleum Corporation (NNPC) is committed to continuing to support the sustenance of its operations through adequate funding. After the balance sheet date but before the signing of the accounts, the parent company, Nigerian National Petroleum Corporation (NNPC) with support from the Federal Government, approved the sum of $1.5 billion to rehabilitate the aging plants towards productive and profitable use.
“Without doubt, if this plan is fully executed, the reoccuring losses will stop in the year 2023 which is the expected date of completing phase one of the rehabilitation project.”
The company spent N22.548 billion on salaries, wages and other benefits of its workforce in 2020, dropping by 1.59 per cent from N22.195 billion recorded.
Irrespective of its zero revenue and huge loss, the company still made donations and community development assistance of N32.398 million in 2020, as against the sum of N154.942 million incurred in 2019.
It added that: “The Company also extended support to the host communities by way of palliative for COVID-19 pandemic to the tune of N6.6 million.”
SOURCE: sweetcrudereports.com