These Nigerian refineries recorded their first financial gains in one year

For the first time since February 2015, Nigeria’s three refineries in Warri, Kaduna, Port Harcourt, were able to make profit at the close of business in January this year, according to the financial and operations report of the Nigerian National Petroleum Corporation.

The report showed that the refineries recorded losses consecutively from February last year up till December; but in January 2016, they was some operating profit made of about N5.67bn.

Although the revenue of the three refineries show that a profit of about N5.67Bn was made, an analysis of the report showed that only two out of the three companies actually made profits at the close of activities in January.

The refineries that actually made profit are the Warri and Port Harcourt refineries of about N4.391bn and N3.397bn respectively while the Kaduna refinery made a loss of about N2.118bn according to report.

“The combined value of output by the three refineries (at import parity price) for the month of January 2016 amounted to N22.29bn, while the associated crude plus freight cost was N10.73bn, giving a positive margin of N5.67bn after considering overhead of N6.01bn,” the NNPC said

It should be noted that the highest loss ever recorded by these three refineries during the period under review was in the month of September 2015, as the facilities had a consolidated revenue shortfall of N8.841bn.

Now that the Federal Government wants to split the NNPC into 30 companies they might  employ more hands to fill vacant positions.

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