NNPC’s engineering subsidiary records 137% increase in operating profit

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

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

Femi Soneye, spokesperson of NNPC, made this known in a statement on Thursday.

According to the statement, NETCO also recorded a 101 percent revenue increase last year.

Segun said this reflects a turnaround in operating results, which rose by 137 percent, reversing the previous year’s deficit. 

He said the company’s gross profit increased by 145 percent— compared to the previous year.

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

“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,” Alagba said. 

He said through participation in mainstream engineering, procurement, and construction (EPC) projects, NETCO aims to increase its market share by at least five percent.

Also, the MD said the company will bid for a minimum of 32 tenders with an aim to secure at least 15 contracts.

Listing other NETCO targets, Alagba said the company aims for 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.

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