The National Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has declared a profit before tax of N4.31 billion for the year ended December 31, 2021.
According to NAN, this was made known on Thursday by the Chairman, Board of Directors of NETCO, Mr Adeyemi Adetunji, at the oil firm’s 32nd Annual General Meeting held in Lagos.
Adetunji said that NETCO scaled the significant hurdles faced by the oil and gas industry as a direct result of the Covid-19 pandemic and global energy shift which curtailed investment in the sector.
NETCO Chairman discloses company’s strong financial results
Adetunji said, “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 N5.74 billion 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.”
NETCO taking advantage of the newly signed PIA
Adetunji noted that it is remarkable that the company’s participation in the NNPC Refinery Rehabilitation project has established NETCO as a responsible service provider in refinery rehabilitation.
He said that NETCO has embarked on aggressive marketing of its services in response to the challenges in the industry and opportunities created by the enactment of the Petroleum Industry Act (PIA), in addition to the adoption of cost optimization strategies to reposition the company for growth and profitability in PIA times.
NETCO to pay dividend of 50k to shareholders
The acting Managing Director of NETCO, Mr 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.
He 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 revenue target of N36.58 billion 2022, adding that the company’s board had approved a gross dividend of N500 million, which translated to 50k per share for its shareholders.
What you should know
- Recall that in July 2021, NETCO reported a profit before tax of N3.37 billion for the year ended December 31, 2020, representing an increase of 53% when compared with N2.20 billion achieved in the corresponding of 2019.
- The oil firm recorded a total revenue of N18.02 billion for the year ended December 31, 2020, representing a 52% decrease when compared to 2019 revenue of N37.21 billion.
- The board approved a gross dividend of N400 million, which translated to 40 kobo per share for its shareholders.