NETCO posts N4.31bn profit for 2021

The National Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has reported a profit before tax of N 4.31 billion for the year ended December 31, 2021.
Chairman, Board of Directors of the company, Adeyemi Adetunji , made the disclosure, yesterday, at the company’s 32nd Annual General Meeting in Lagos.
Adetunji expressed satisfaction that NETCO had again scaled the hurdles faced by the oil and gas industry as a result of COVID-19 pandemic and global energy shift which curtailed investment in the sector.
“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.
“This is as a result of wounding up of old projects and revenue from new projects yet to come in. 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 N5.74billion in the previous year to N9.24 billion in the year under review, representing a 61 per cent increase.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,”Adetunji said.
He lauded the company’s participation in the NNPC Refinery Rehabilitation project saying it has established NETCO as a responsible service provider in refinery rehabilitation.
He commended the Group Managing Director of NNPC, Mr Mele Kyari, the NETCO management and staff as well as other stakeholders for their efforts towards achieving the company’s mandate.
Acting Managing Director of NETCO, Kanayochukwu Odoe, said the management had intensified efforts to launch NETCO into a full Engineering Procurement Construction (EPC) company with aggressive bidding for major EPC projects.
Odoe said NETCO further diversified its business portfolio to include cost benchmarking, value-for-money-audits and cost estimating services.
He said the management had set a N36.58 billion revenue target for 2022 while the company’s board had approved a gross dividend of 500 million divided into 50 kobo per share for its shareholders.
He said in 2021, NETCO completed four projects and was currently executing 16 key contracts in the industry and had continued to contribute to the development of in-country Engineering and Technical capacity.
Odoe said NETCO also facilitated a training programme for 13 youths from Iruland who were provided with entrepreneurial skills in Fish farming, Computer Application/Web Design, Catering, Leather works, Beads making and Events Management.
Odoe said NETCO would continue to improve on Transparency, Accountability and Performance Excellence (TAPE) initiatives being championed by the NNPC GMD in order to remain commercially viable.