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Wednesday, June 29, 2022

Total’s Unpaid Subsidy Claims Surge to N15.4bn as Losses Mount

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Total Nigeria’s outstanding subsidy and other receivables surged by 56 percent to N15.4 billion in June 2020, from N9.9 billion in December 2019, as losses mounted for the fuel marketer according to data from the firm’s second quarter results.

The amounts comprise funds due from petroleum products pricing regulatory agency or PPPRA with respect to subsidies/PSF receivables on imported products as well as amounts receivable from the Petroleum Equalization Fund (PEF) with respect to bridging claims.

Bridging claims receivables are usually netted off against the payables following reconciliations with PEF.

Total explains however that there is no loss experience with government receivables as the determination of amounts due are based on existing regulations/ guidelines and impairment is only recognized when changes occur in the regulations/ guidelines that prohibit or limit recovery of previously recognized amounts.

“Therefore, the Company has recorded no loss experience with government receivable as this is always deemed receivable and the settlement pattern of the government is not defined or definite,” Total said.

Total

Totals losses widened to –N537.1 million in the six months’ period (Jan-Jun 2020), as sales fell.

Downstream is the worst performing sector on the Nigerian Stock Exchange (NSE), with the oil and gas index down -30.6 percent as at July 24.

Total’s stock closed trading at N97.50 per share on Friday and has returned -18.1 percent in the past year.

 

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