NNPC subsidiary posts 122% revenue increase, declares first dividend since 1989

NNPC TOWERS
NNPC TOWERS

The National Engineering and Technical Company Limited (NETCO) on Friday reported a 122 per cent revenue increase for 2017 financial year.

NNPC Chief Operating Officer, Upstream, Bello Rabiu, said the revenue grew from about N10.13 billion in 2016 to about N22.46 billion in the year under review.

Also, operating profit of the company, which is the technical arm of the Nigerian National Petroleum Corporation (NNPC), increased by 134 per cent, from N0.89 billion in 2016 to N2.07 billion in 2017.

Mr Rabiu, who is also NETCO Board Chairman, said at the 2017 Annual General Meeting (AGM) at the NNPC Towers in Abuja, Thursday, the profit before tax was about N3.257 billion.

The profit before tax, however, decreased by 34 per cent in the year compared with N4.90 billion of the previous years.

The decrease was attributed to the foreign exchange gains, which constituted about 56 per cent before tax in 2016 as compared to 4.8 per cent gain in 2017.

He said the “impressive result was the outcome of improved performance in project execution and cost reduction measures put in place during the period.”

The performance was also attributed to the new addition of construction and procurement portfolios to the company’s activities.

The COO Upstream said the figures were made possible through sustained efforts on the part of the Company to cash in on the support by the Group Managing Director of the NNPC, Maikanti Baru, and the shareholders.

“The strong support of the GMD, the shareholders, in addition to award of some big-ticket jobs which NETCO delivered on time, within budget and without compromising on quality of service delivery, made it possible for the remarkable figures.

“The performance has reinforced to all stakeholders that given the right environment, NETCO is poised to greater heights,” the board chairman said.

Mr Rabiu said for the first time since its establishment, NETCO declared N750 million as dividend.

The Group Managing Director of NNPC, Mr Baru, commended the management of NETCO for what he called “unprecedented performance.”

He assured the company of his continued support, saying that based on its performance, he would ensure NETCO got more projects, especially in the gas sector.

He congratulated the outgoing MD of NETCO, Siky Aliyu, for leaving behind a legacy for his successor and expressed optimism for a better performance next year.

The Managing Director of NETCO, Siky Aliyu, said the company set a target to perform 600,000 man-hours of work in 2018.

He said the company would continue to explore new opportunities and improve on service delivery to engender more confidence in its clients and stakeholders.

NETCO, Nigeria’s premier indigenous engineering company, was established in 1989 to acquire engineering technology through direct involvement in all aspects of engineering in the oil and gas and non-oil sectors of the economy.

The company specialises in providing basic and detailed engineering, procurement, construction supervision and project management services, using state-of-the-art technology.

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