The NNPC Engineering and Technical Company (NETCO) has unveiled its exceptional financial performance for the year 2023, reporting a significant 137 percent increase in operating profits.
A statement issued by Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday, said the disclosure was made by the Chairman of NETCO’s Board of Directors, and Executive Vice President, Downstream, NNPC Limited, Adedapo Segun during the company’s 34th Annual General Meeting in Lagos on Friday.
Speaking on the financial performance, Segun said that NETCO experienced a remarkable 101 percent rise in revenue, marking a significant turnaround from the previous year’s results.
He further highlighted a notable 145 percent surge in gross profit compared to the preceding year, signifying a robust recovery and growth trajectory for the company.
Speaking at the AGM, Dr. Tonye Alagba, the Managing Director of NETCO, outlined the company’s strategic objectives for 2024 and beyond, emphasizing a focus on expanding its business portfolio within the oil and gas industry.
Dr. Alagba stated, “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 minimize risks.”
Furthermore, Dr. Alagba outlined NETCO’s ambitious targets for the upcoming year, including a concerted effort to increase market share by at least five percent through active participation in mainstream Engineering, Procurement, and Construction (EPC) projects.
He revealed plans to bid for a minimum of 32 tenders, with the goal of securing at least 15 contracts to bolster the company’s project portfolio.
Highlighting additional objectives, Dr. Alagba articulated NETCO’s aims for a 21-day invoicing cycle, a minimum debt collection efficiency of 85 percent, and a customer satisfaction rate exceeding 71 percent.
The company also intends to acquire critical assets such as fabrication yards and offshore logistics support bases while fostering exclusive collaborations with key technical partners like KBR and Petrofac.
NETCO, a subsidiary of NNPC Limited, is entrusted with the mandate of delivering qualitative, integrated, and cost-effective Engineering, Procurement, and Construction Management (EPCM) services for Nigeria’s oil and gas industry and beyond.
“NETCO’s remarkable performance underscores NNPC’s dedication to fostering innovation and sustainable development within Nigeria’s energy sector,” Soneye stated.
NETCO self-describes as Nigeria’s premier indigenous Engineering Company with the strategic vision of providing basic & detailed engineering, procurement, construction supervision and project management services, using state-of-the-art Technology.
NETCO, founded in February 1988 as a fully-owned subsidiary of NNPC Limited, was established with the aim of furnishing a robust and dependable engineering foundation for the NNPC Group and the broader oil and gas sector.
Nonetheless, its offerings transcend to encompass the wider economy and beyond.
Its services however, extend to the rest of the economy and beyond.
It was established in 1988 as an NNPC/BECHTEL Joint Venture, NETCO began its journey as a pioneering force in the Oil and Gas business.
NETCO became a wholly-owned subsidiary of NNPC in 1997, signifying a pivotal moment in its history as the premier indigenous engineering company in Nigeria.
It launched commercial operations in 1990 and in 2022 it underwent a significant transformation, rebranding itself from the National Engineering and Technical Company to NNPC Engineering and Technical Company Limited in accordance with the provisions of the Petroleum Industry Act.
