NNPC: Gas Company Profit Drops By N6.7bn

•  Reports increased earnings from gas transport rate, others

By Chineme Okafor in Abuja    

The Nigerian Gas Processing and Transportation Company Limited (NGPTC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has declared a profit after tax of N15.81 billion for its 2016 trading year, some N6.79 billion less than what it made the previous year.

According to a statement from the Group General Manager, Public Affairs of NNPC, Mr. Ndu Ughamadu, on Sunday in Abuja, the NGPTC explained that its profit for the period came from the write-back of deferred tax worth N8.05 billion in 2015, higher transportation tariff, and new commercial customers that came on stream within the period.

The statement quoted the Chief Operating Officer of NNPC’s Gas and Power Autonomous Business Unit, Saidu Mohammed, who is also the Chairman of NGPTC to have disclosed this at the 22nd Annual General Meeting (AGM) of the company in Abuja.

Saidu stated that the profit before tax for the year ended 31st December, 2016 was N24.4 billion as against N20.9 billion in 2015, representing an increment of 16.8 per cent, while the profit after tax reduced from N22.6 billion in 2015 to N15.81 billion in 2016.

He also said the earnings per share of the firm reduced from N4, 510 in 2015 to N3, 163 in 2016, while the total revenue generated from gas sold and transmitted in 2016 by the company amounted to N219.5 billion as against N155.5 billion in 2015.

“An overview of NGPTC’s business performance for the year 2016 shows that 307 billion standard cubic feet (bscf) of gas was sold and transmitted as against the planned 463bscf, thereby achieving 66.4 per cent of its target. The year 2016 also reveals a performance of four per cent below the volume of 319.25bscf sold in 2015,” said Saidu in the statement.

He noted that NGPTC was confronted with the challenges of incessant vandalism of the Escravos-Lagos Pipeline System-1 (ELPS 1), Trans Forcados pipeline and evacuation bottleneck of condensate in 2016.

He equally acknowledged the continued support of NGPTC’s host communities for the sustained peace and tranquillity the company enjoyed in its areas of operation.