The Kaduna Refining and Petrochemical Company Limited (KRPC) generated no revenue in 2018, the first audited financial statements of the Nigerian National Petroleum Corporation (NNPC) after 43 years of its operation have shown.
Details of the report showed that the refinery, however, incurred an operating loss of N64.5 billion, throwing up concerns over the continued operation of refineries by the corporation.
The newly released annual reports and financial statements for the year ended December 31, 2018, were for 20 of the state-owned national oil company’s subsidiary companies operating within and outside the country.
The companies covered in the reports published in the corporation’s website last Friday included the Nigerian Petroleum Development Company (NPDC), Warri Refining & Petrochemical Company Limited (WRPC), Port Harcourt Refining Company Limited (PHRC), Kaduna Refining & Petrochemical Company (KRPC), and Integrated Data Services Limited (IDSL), Nigerian Products and Marketing Company Limited (NPMC), Nigerian Pipelines and Storage Company (NPSC).
The others include the National Engineering & Technical Company Limited (NETCO), Nigerian Gas and Marketing Company Limited (NGMC), Duke Oil Services (UK) Limited, Duke Global Energy Investment Limited, Duke Oil Incorporated, NNPC Retail Limited, National Petroleum Investments Management Services (NAPIMS), The Wheel Insurance, NIDAS Shipping Services, NIDAS UK Agency, and NIDAS Marine.
Details showed that Kaduna refinery spent N24 billion in direct costs to record zero revenue and an operating loss of N64 billion for 2018, as against N2 billion naira revenue and N112 billion losses in 2017.
A breakdown of the direct costs and administrative expenses showed that it incurred N447.7 million in Training Expenses, Security expenses of N230 million, Communication expenses of N37.3 million, and Consultancy fees of N843 million.
For the Warri Refining Company, the audited financial statement showed that the company earned N1.98 billion as revenue while it incurred N12.74 billion as cost of sales, resulting in a gross loss of N10.57 billion and an operating loss of N45.39 billion.
The Port Harcourt Refining Company recorded total revenue of N1.45 billion in 2018 with expenses of N24.04 billion, resulting in a gross loss of N22.58 billion.
Meanwhile, a breakdown of the payments made to directors at the Kaduna Refinery showed that total employee cost was put at N23 billion in 2018, compared to N27 billion in 2017. The payments include salaries and wages, death benefit, administrative expenses, among others.
Aside that, details showed that in 2018, there were a total of 32 higher-paid employees of the company, other than directors, whose works were done in Nigeria. The remuneration for this set of employees range from those who earned between N100,000 and N1 million and those who earned N15 million and above. Earlier in 2017, the number of this category of staff was put at 1,022, representing about 340 percent difference in both years.
As per the directors’ remuneration for 2018, excluding pension contributions and certain other benefits, the figure was put at N109 million, as against N249 million in 2017.
Also, the highest-paid director earned N33 million in 2018, as against N27 million in 2017.
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