Loss making NNPC set for turnaround

petroleum depotOKORO CHINEDU
ABUJA, (CAJ News) – A positive future is projected for the Nigerian Petroleum Development Company (NPPC) despite the company recently reporting a financial deficit.

NNPC’s accounts for January show a group deficit of N3,6bn (US$18m) against N11,9 billion the previous month.

Group revenue slumped to N130,9 billion n (US$665m) from N184,4 to the previous month.

The setbacks have been attributed to pipeline breaks in January, which have been said to be the highest over a 12-month period.

“The corporation has an ambitious reform programme in place but cannot be expected to arrest the decline in pipeline security,” First Bank Nigeria (FBN) said on Thursday.

FBN highlighted total group spending in January was N134,4 billion compared with N196,3 billion the previous month.

Spending by central headquarters for the month declined to N6,4 billion from N9,6 billion.

FBN said the level of disclosure had improved dramatically under Emmanuel Kachikwu, the group managing director.

“Achievements to date include a new framework for the management of product subsidies, preliminary work on alternative project financing (to combat the challenge of cash-call arrears) and refinery reform,” the financial firm said.

CAJ News

Short URL: http://cajnewsafrica.com/?p=12362

Posted by on Mar 31 2016. Filed under Energy, Finance, National, News, Oil & Gas, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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