May 22, 2024
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OIL & GAS

NETCO Earns N5.5 Billion Profit

The NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), has announced a pre-tax profit of N5.53 billion for the year ending on December 31, 2022.

During the 33rd annual general meeting held in Lagos, the Chairman of the company’s Board of Directors, Adeyemi Adetunji, revealed that shareholders’ equity saw a 52 percent increase, reaching N14.99 billion.

The Nation reports, the profit achieved by NETCO signifies a remarkable surge of 178 percent compared to the N1.99 billion recorded in the previous year of 2021.

Adetunji highlighted that despite the challenges posed by the COVID-19 pandemic and global shifts in energy dynamics that impacted investments in the sector, NETCO successfully maintained resilience.

He mentioned, “The company’s total revenue for the year under review was N13.87 billion, marking a 25 percent decline from N18.49 billion recorded in 2021. This decline can be attributed to the completion of major projects and delays in the approval of new projects.”

Furthermore, the company managed to bolster its asset base by 20 percent to N54.89 billion, while shareholders’ equity experienced a 52 percent surge to N14.99 billion in 2022.

Adetunji reiterated the commitment to restoring profitability and enhancing shareholder value, outlining strategic measures to optimize operational performance and explore avenues for revenue generation.

Adetunji extended gratitude to the company’s stakeholders and clients for their unwavering support and understanding.

He added that NETCO is intensively working to change the trajectory in the current fiscal year, focusing on enhancing debt collection efficiency for improved cash flow.

Additionally, the company is venturing into Technical and Project Financing Partnerships to augment revenue, cutting overhead costs through innovative approaches, expanding customer relations, and collaboration with key partners.

NETCO’s Managing Director, Umar Aminu, revealed the company’s target of N53.81 billion in revenue and 646,000 man-hours for the upcoming year.

He emphasized NETCO’s commitment to diversify its operations into renewable energy, the power sector, and infrastructure development.

Aminu highlighted the strategic plans to optimize costs, invest in human capacity development, and adapt to industry trends for sustained competitiveness and viability.

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