NATIONAL Engineering and Technical Company (NETCO), a subsidiary of Nigerian National Petroleum Company (NNPC) Ltd, has reported a profit before tax of N 4.31 billion for last year.
NETCO’s Chairman Adeyemi Adetunji spoke yesterday at the company’s 32nd Annual General Meeting in Lagos.
He hailed NETCO for scaling the hurdles faced by the oil and gas industry as a result of COVID-19 and the global energy shift.
Adetunji said: “NETCO has delivered a strong result as it posted a profit before tax of N4.31 billion, which represents an increase of 36 per cent from N3.17 billion in 2020.
“The company recorded total revenue of N18.49 billion, which represents a marginal increase of three per cent from N18.03 billion in 2020.
“NETCO’s Operating Profit stood at N1.40 billion, an increase of 178 per cent on the operating loss of N1.76 billion in the prior year.
“…NETCO’s gross profit increased from N5.74 billion in the previous year to N9.24 billion, representing a 61 per cent increase.
“The comprehensive income stood at N4.45 billion compared with N0.841 billion in 2020, representing an increase of 430 per cent.”
Continuing, he said it was remarkable the company’s participation in NNPC refinery rehabilitation project established NETCO as a responsible service provider in refinery rehabilitation.
He said in response to challenges in the industry and opportunities created by the enactment of the Petroleum Industry Act (PIA), NETCO embarked on aggressive marketing of its services.
Adetunji said it also adopted cost optimisation strategies to reposition NETCO for growth and profitability in PIA times.
He hailed NNPC’s Group Managing Director Mr Mele Kyari, NETCO management and employees as well as stakeholders for their efforts towards achieving the company’s mandate.
NETCO’s Acting Managing Director Kanayochukwu Odoe said the management had intensified efforts to launch the company into a full Engineering Procurement Construction (EPC) outfit with aggressive bidding for major EPC projects.
Odoe said NETCO also diversified to Cost Benchmarking, Value-for-Money-Audits and Cost Estimating services.
He said in 2021, NETCO completed four projects and was executing 16 key contracts and had contributed to development of in-country engineering and technical capacity.
The acting managing director noted that NETCO facilitated a training for 13 youths from Iruland, providing them with skills in fish farming, computer application/web design, catering, leatherworks, beads making and events management.
He said the management set N36.58 billion revenue target for 2022 while the board approved a gross dividend of 500 million divided into 50 kobo per share for shareholders.
Odoe said NETCO would continue to improve on Transparency, Accountability and Performance Excellence (TAPE) initiatives championed by NNPC group managing director to remain commercially viable.