The Nigerian National Petroleum Company Limited (NNPCL) has said the idle Port Harcourt Refinery Company (PHRC) which has not refined any crude oil for years spent N39,491,468,000 in 2021.
It spent N31,463,168,000 in the previous year, according to PHRC Audited Financial Statements 2021, which The Nation obtained yesterday.
The NNPCL noted that depreciation and impairment of financial assets of the PHRC was 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This indicates that the assets of the company are outdated or non-current assets.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 as 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 the company up till year 2019 was classified as part of intercompany any, balances and are included in the N323 billion due to NNPC.
The report noted that NNPC also provides funds to the tune of N152.2 billion as at 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.