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NNPC’s Engineering Subsidiary Records 137% Increase In Operating Profit

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NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigeria National Petroleum Company (NNPC) Limited has revealed that its operating profits increased by 137 percent in 2023.

Gatekeepers News reports that the spokesperson of NNPC, Femi Soneye made this known through a statement released on Thursday.

According to the statement, the chairman of NETCO’s board of directors and executive vice-president, downstream, Adedapo Segun made the announcement while speaking at the company’s 34th annual general meeting (AGM) held in Lagos on May 31.

It was also revealed that NETCO recorded a 101 percent revenue increase last year.

The chairman said that the profit growth reflects a turnaround in operating results, which rose by 137 percent, reversing the previous year’s deficit.

Segun further said that the company’s gross profit increased by 145 percent when compared to the previous year.

The managing director (MD) of NETCO, Tonye Alagba who also spoke at the meeting said the company plans to grow its business portfolio in 2024 and beyond.

Alagba said, “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.”

The MD said through participating in the likes of mainstream engineering, procurement, and construction (EPC) projects, NETCO aims to increase its market share by at least five percent.

Alagba also said that the company will bid for a minimum of thirty-two tenders with the aim of securing at least fifteen contracts.

He listed other NETCO targets and further stated that the company plans on engaging in a 21-day invoicing cycle; a minimum of 85 percent debt collection efficiency; a minimum customer satisfaction rate of 71 percent; acquisition of critical assets such as fabrication yards and offshore logistics support base.

Lastly, Alagba said the company also plans to develop exclusive collaborations with key technical partners like KBR and Petrofac, among others.

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