NETCO Announces N4.31 billion as Profit for 2021

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CEM REPORT | The National Engineering and Technical Company (NETCO), has declared a profit of N4.31 billion before tax for the year 2021

NETCO, a subsidiary of Nigerian National Petroleum Company (NNPC) Ltd., made this know at its 32nd Annual General Meeting (AGM) today, Thursday held in Lagos.

According to a NAN report the Chairman Board of Directors, Mr Adeyemi Adetunji, NETCO, said inspite of global energy instability and COVID-19 posing numerous challenges in the oil and gas sector, the company records an increase of 36 percent from the previous year.

“NETCO has delivered a strong result as it posted a total profit before tax of N4.31 billion which represents an increase of 36 per cent from N3.17 billion in 2020″,

“The company recorded a total revenue of N18.49 billion in the year under review, which represents a marginal increase of three per cent from N18.03 billion in 2020″ he said.

He also added that the company’s operating profit grew by 178 percent while it’s gross profit by 61 percent.

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“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”

“It is worthy of note that NETCO’s gross profit increased from N5.74 billion in the previous year to N9.24 billion in the year under review, representing a 61 per cent increase”, he added.

He also said, “The total comprehensive income stood at N4.45 billion when compared with N0.841 billion recorded in year 2020, representing an increase of 430 per cent.”

He further said the company’s success comes as a result of project engaged in.

“This is as a result of wounding up of old projects and revenue from new projects yet to come in” he said

He further added that NETCO had launched aggressive marketing strategies for it service to respond swiftly to hurdles in the industry, leveraging on opportunities created by the enactment of the Petroleum Industry Act (PIA),

He commended the management and staff of NETCO as well Group Managing Director of NNPC, Mr Mele Kyari, and other stakeholders for their resilient effort and commitment towards achieving its mandate.

Mr Kanayochukwu Odoe, the acting Managing Director, NETCO, said the management had set N36.58 billion as it revenue target for 2022 and the company’s board had approved shareholders gross dividend of N500 million, translating to 50k per share.

He also said the company’s management intends to bid aggressively for major Engineering Procurement Construction (EPC) project as it intensives effort to become a full Engineering Procurement Construction (EPC) company.

Odoe said NETCO had diversified its business portfolio to include cost benchmarking, value-for-money-audits and cost estimating services.

Speaking on the company’s achievement, he said NETCO continues to contribute to the development of in-country Engineering and Technical capacity as it has completed four major projects in 2021 and is presently executing 16 key contracts in the industry.

He also mentioned that NETCO facilitated an entrepreneur skill training programme for 13 youths from Iruland. They were trained on skills ranging from web design, catering bead making, events management, leather works and fish farming.

Odoe said NETCO plans to remain commercially viable, by continuously improving on the Transparency, Accountability and Performance Excellence (TAPE) initiatives put forward by the NNPC GMD.

NNPC Refinery Rehabilitation project established NETCO as a responsible service provider in refinery rehabilitation

 

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