The non timely payment in subsidy monies owed to petroleum products importing and marketing firms, has hit their half year earnings.
As at last month, the total fuel subsidy debt owed by Nigeria to importers of petroleum products had swelled to N314 billion. The payment delays have been caused by the poor fiscal condition of government and the continued dispute between the authorities and marketers over arrears.
Forte Oil’s profit in the six months through June fell by 19.25 percent to N2.53 billion from N3.13 billion the previous year. Sales dipped 23.23 percent to N61.61 billion.
Mobil Oil’s profit for the six months to June, plummeted by 10 percent to N1.20 billion as against N1.33 billion a year earlier.Revenue dropped by 25 percent to N31.82 billion.
Total profit for the six months through June shrank by 10 percent to N1.96 billion, compared with N2.17 billion last year. Sales dipped by 7 percent to N111. 97 billion.
MRS profit for the six months through June, fell by 88.88 percent to N37.60 million, from N315.43 million the previous year, as sales reduced by 21.57 percent to N36.98 billion.
Nigeria spends up to $5 billion a year on fuel subsidies.
