The NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), has reported a profit before tax of N5.53 billion for the year ended December 31, 2022.
The profit represents a 178 per cent increase from ₦1.99 billion recorded in 2021.
Adeyemi Adetunji, chairman, Board of Directors, NETCO, made the disclosure on Friday at the company’s 33rd Annual General Meeting in Lagos.
Adetunji expressed satisfaction that NETCO had again 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.
He said: “The Company recorded a total revenue of ₦13.87 billion in the year under review representing a 25 per cent decrease from ₦18.49 billion posted in 2021, this is attributed to the close-out of major projects and delay in sanctioning of new projects. “
“NETCO was able to grow its assets base by 20 per cent to ₦54.89 billion, while the shareholders’ equity rose by 52 per cent to ₦14.99 billion in year 2022.’’
“We remain dedicated to restoring profitability and enhancing shareholder value, and we will continue to diligently work towards that goal through strategic measures aimed at optimizing operational performance and identifying new avenues of revenue generation,” he added.
“We greatly appreciate your understanding and continued support as we navigate these challenging times and work towards a more promising financial outlook. NETCO is assiduously working to change the above trajectory in the current fiscal year by focusing more on improving its debt collection efficiency, for optimal cash flow, generating more revenue to cover its expenses by engaging in Technical and Project Financing Partnership.
He added: “We are also managing its expenses through cost optimization, better contract negotiation, and other innovative ways to reduce overhead expenses, building its customer base and relationship with key partners to increase visibility and collaboration with other EPCM Companies.”
Also speaking, the Managing Director, NETCO, Umar Aminu, said going forward in 2023, the company has set itself a target of N53.81bn revenue and 646,000 man-hours at zero LT, stressing that to achieve the target, NETCO would work assiduously to expand its areas of operation by diversifying into renewable energy, power sector, infrastructural development.
“NETCO will also optimize cost, invest in development of human capacities and other resources, with minimized risks. The company will continue to strive to be adaptable to the trends and requirements of the industry to remain competitive, relevant, and viable.
“To this end the following strategic plans will be implemented: Maintain twenty-one (21) working days invoicing cycle, increase revenue by 15 per cent and man-hour by 10 per cent of 2022, respectively, maintain a minimum of 71 per cent customer rating annually,” he said.
He reaffirmed that the company remained committed to expanding its relationships with technical partners and other stakeholders to improve its capabilities and capacities.