June 22, 2024
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OIL & GAS

NETCO Posts 137% Increase in Operating Profit for 2023

The NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC Ltd.), has reported a significant 137 percent increase in operating profits for the year 2023.

This announcement was made by Mr. Adedapo Segun, the Chairman of the company’s Board of Directors and Executive Vice President, Downstream, NNPC Limited, during the company’s 34th Annual General Meeting held in Lagos on Friday.

Mr. Segun highlighted that NETCO achieved a 101 percent revenue increase in 2023, leading to a remarkable turnaround in operating results, which saw a 137 percent rise, effectively reversing the previous year’s deficit. Additionally, the company experienced a 145 percent surge in gross profit compared to the previous year.

During the AGM, Dr. Tonye Alagba, the Managing Director of NETCO, outlined the company’s strategic focus on expanding its business portfolio in 2024 and beyond.

“To achieve this, the company is working strategically to expand its service offerings within the oil and gas industry in 2024, invest in the development of human and other resources, reduce direct and overhead resources and minimise risks”, Alagba stated.

Dr. Alagba also mentioned NETCO’s goal to increase its market share by at least five percent through active participation in mainstream EPC (Engineering, Procurement, and Construction) projects.

The company aims to bid for a minimum of 32 tenders and secure at least 15 contracts. Further targets include achieving a 21-day invoicing cycle, a minimum of 85 percent debt collection efficiency, a minimum customer satisfaction rate of 71 percent, and the acquisition of critical assets such as fabrication yards and an offshore logistics support base.

Additionally, NETCO plans to develop exclusive collaborations with key technical partners like KBR and Petrofac.

NETCO, as a subsidiary of NNPC Limited, is mandated to deliver qualitative, integrated, and cost-effective Engineering, Procurement, and Construction Management (EPCM) services for Nigeria’s oil and gas industry and beyond.

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