Port Harcourt refinery targets N182bn earnings

oil-prices-drop-e1342535886370

…Records N11.2bn profit

 

BY ADEWALE SANYAOLU

Despite the slide in global crude oil price, the Port Harcourt Refining Company (PHRC) has concluded plans to rake in about N182 billion from the sale of petroleum products.

Besides, the company said it also recorded a net profit of N11.2 billion in December 2014.

Its Managing Director, Dr. Bafred Enjugu, explained that the revenue target and last month’s profit figure of N11.2 billion was as a result of the phased rehabilitation programme and resumption of crude supply to the plants.

Enjugu stated that last month’s financial performance was N8.2 billion or 250 per cent higher than the N3.2 billion posted by the company in November.

‘‘The company has also mapped out plans to harness various business opportunities available to it through plans by its commercial department to rake in additional N182 billion annually from sales of deregulated products including Liquefied Petroleum Gas (LPG), Automotive Gas Oil (AGO) and other derivatives,’’ he said.

He stated that the development remained the dividend of the ongoing phased rehabilitation of the company’s plant facilities and receipt of crude by marine vessels. The PHRC regretted that pipeline vandalism on its 54 kilometre crude line from Shell facility in Bonny had made it near impossible for the refinery to function until the intervention of President Goodluck Jonathan through the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who approved receipt of crude for the refinery through marine vessels.

As part of the direct intervention of government, he said Alison-Madueke has also resolved the age-long problem of epileptic power supply to run the facilities at the refinery.

Under the power supply arrangement, private player in the electric power sector, Gel Utilities Limited, now provides electricity to run the refinery from its recently commissioned generation plants.

With the various measures activated to enhance the operations of the company, Enjugu said the company has started making meaningful contribution to the nation’s petroleum products pool.

Such developments, according to him, would not only bring in more income for the refinery but will also help solve constraints, which sometimes led to shut down of its processing units. Enjugu said the decision of the Federal Government to supply crude to the refinery by marine transportation; supply of power by IPP, and approval for a new strategy of using in-house skills for a phased rehabilitation have contributed to the recent increase in production and plant capacity utilisation.

He disclosed that the Nigerian National Petroleum Corporation (NNPC) resorted to the new strategy of phased rehabilitation using in-house staff and local capacities when the Original Refinery Builders (ORB), the JGC of Japan refused to come to the country for the job, citing security concerns.

Source : SunOnline

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