Bloomberg is reporting that, despite its supposed status as a cash cow, the state oil company of Africa’s biggest producer is bleeding money.
Nigerian National Petroleum Corp., the Abuja-based behemoth that dominates the OPEC member’s energy industry, has made losses for at least the last three years. It will probably register another in 2018, according to Ecobank Transnational Inc., as its refineries and fuel-retailing arm fail to generate profit.
The state oil company does not publish full financial results, though it releases limited numbers on its operating performance. These include earnings for core units, but exclude items such as taxes and dividends from a 49% shareholding in Nigeria LNG Ltd., one of the world’s biggest exporters of LNG.
The pain for NNPC, which produces oil and natural gas in partnership with Royal Dutch Shell Plc, Exxon Mobil Corp. and Chevron Corp., comes even as national energy firms from Norway to Saudi Arabia thrive with crude prices recovering from their crash in 2014. And it lays bare President Muhammadu Buhari’s difficulty in fulfilling his pledge to modernize a company that’s been a byword for inefficiency and opacity since its creation in the 1970s.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/16052018/more-pain-for-nigeria-behemoth/