The Port Harcourt Refinery Company (PHRC) which has N39,491,468,000 in 2021 despite having no refined crude oil for years.
This is according to the Nigerian National Petroleum Company Limited (NNPCL) PHRC Audited Financial Statements 2021, which was made available on Saturday, October 22, 2022.
The financial statements revealed that the company spent N31,463,168,000 in the previous year (2020).
The NNPCL noted that the depreciation and impairment of financial assets of the PHRC were N9,758,817,000 in 2021 and N96,030,000 in 2020. This indicates that the assets of the company are outdated or non-current assets.
The report noted that the company incurred N48.887billion for the year ended 31st December 2021 against the sum of N28.6 billion incurred in 2020 from normal operating activities.
“The losses have arisen principally from the inability of the company to refine a single drop of crude oil in the year 2021 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.
“As a result of recurring losses, the company’s retained losses as at 31st December 2021 is N555.7 billion (2020): N506.9 billion). However, the parent company (NNPC ) is committed to continuing to support the sustenance of its operations through adequate funding. “
NNPCL said during the year 2021, the NNPC did not charge lease rentals as Nil charged in the year 2020.
It added that the amount charged to the company up till the year 2019 was classified as part of intercompany, balances and is included in the N323 billion due to NNPC.
The report noted that NNPC also provides funds to the tune of N152.2 billion as of December 2021 to the company while another N11.4 billion from intercompany transactions is due to the corporate headquarters and all these funds were non-interest bearings.
Earlier, the Group Chief Executive Officer (GCEO) of NNPC Limited, Engr. Mele Kyari has said the company made a profit of N674 billion for the financial year 2021.
His statement partly reads; “In September 2021, Mr. President graciously approved the publication of the 2020 NNPC Group Audited Financial Statement, in which NNPC declared a profit after tax of N287bn for the first time in its 44 years.
“Despite our challenging operating environment, we strongly believe that NNPC has the potential to sustainably deliver better value to its esteemed shareholders.
“Today I am happy to announce that the Board of NNPC Limited has approved 2021 audited financial statements, and NNPC progressed to a new performance level, from N287bn profit in 2020 to an N674bn profit after tax in 2021, climbing higher by 134.8 percent year-on-year profit growth,” he said.