The government-owned refineries, being run by the Nigerian National Petroleum Corporation reported a total loss of N778.71billion from 2015 to 2019.
Analysis of data collated from their financial statements has shown that, the refineries generated total revenue of N21.12billion in the five-year period as they operated at below full capacities.
The refineries, which are located in Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day.
Further analysis of the data revealed that the country relies largely on the importation of refined petroleum products, as its refineries have remained in a state of disrepair for many years despite several reported repairs.
However, Port Harcourt Refining Company generated a total revenue of N10.33billion from 2015 to 2019, but posted a loss of N229.14billion.
The refinery generated zero revenue in 2019; N1.46billion in 2018; N4.82billion in 2017; N3.37billion in 2016, and N683.52million in 2015.
It lost N50.53billion in 2019; N45.59billion in 2018; N53.77billion in 2017; N43.44billion in 2016, and N35.81billion in 2015.
Kaduna Refining and Petrochemical Company reported revenue of N4.17billion and a loss of N307.27billion in the five-year period.
The refinery generated revenue of N37.17million in 2019, compared to zero revenue reported in 2018. Its revenue had risen to N2.24billion in 2017 from N1.47billion in 2016 and N418.76million in 2015.
It posted a loss of N65.99billion in 2019, N63.64billion in 2018, N111.89billion in 2017, N30.19billion in 2016 and N35.56billion in 2015.
Warri Refining and Petrochemical Company posted revenue of N6.62billion and a loss of N242.30billion in the period under review.
Its revenue dropped to N921.82million in 2019 from N1.99billion in 2018 and N1.25billion in 2019. It had risen from N884.39million in 2015 to N1.58billion in 2016.
The refinery recorded a loss of N51.66billion in 2019, compared to N52.18billion in 2018, N84.60billion in 2017, N24.50billion in 2016 and N29.36billion in 2015.
Kaduna refinery, in its 2019 annual report, said its losses had arisen principally from its inability to operate profitably under its current processing contract with its parent company, NNPC.
The report said, “KRPC’s primary source of revenue is from the processing of crude oil for NNPC. The processing fees are determined solely by NNPC, without consideration for related costs and are significantly lower than the costs incurred to produce.
“The high cost is also due to the current structure of the organisation whereby the company bears the total cost of personnel expenses.”
It said the NNPC had undertaken not to reduce its shareholding in the company and to continue to support it by funding its operations ‘until such time the company is in a position to adequately finance its operations’.
NNPC’s latest monthly report showed that Port Harcourt refinery stopped processing crude oil in April 2019, while Warri and Kaduna refineries have been idle since May and June 2019 respectively.
The corporation said the declining operational performance of the refineries ‘is attributable to the ongoing revamping of the refineries, which is expected to further enhance capacity utilization once completed’.
The Federal Executive Council approved on Wednesday the plan by the Ministry of Petroleum Resources to rehabilitate the Port Harcourt Refinery with $1.5billion.