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NETCO , NNPC Subsidiary Declares N3.37b Profit For 2020

A subsidiary of the Nigerian National Petroleum Corporation (NNPC), the National Engineering and Technical Company (NETCO), has reported a profit before tax (PBT) of N3.37 billion for the year ended December 31, 2020.

Chairman of NETCO’s Board of Directors, Adeyemi Adetunji, announced this on Thursday at the company’s 2020 annual general meeting (AGM) in Lagos.

Adetunji recalled that 2020 witnessed the COVID-19 pandemic, which led to socio-economic and humanitarian crisis worldwide, thereby bringing economic activity to a near standstill.

He said: “In spite of these challenges, NETCO has posted a total profit before tax of N3.37 billion, which represents an increase of 53.94 per cent, from N2.20 billion in 2019.

“The company recorded a total revenue of N18.02 billion in the year under review, which represents 52 per cent decrease, compared to 2019 revenue of N37.21 billion.”

Adetunji said it was noteworthy that NETCO secured the contract award for the Project Management Consultancy/Owner’s Engineer Services for NNPC’s three refineries rehabilitation projects as the main consultant for the first time.

The NTECO boss said it was also laudable that the company’s performance on several projects in the year under review was undeterred by the lockdown and harsh economic terrain occasioned by the pandemic.

He hailed the NNPC Group Managing Director, Mr. Mele Kyari, the NETCO management and workers as well as other stakeholders for the efforts towards achieving the company’s mandate.

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Also, NETCO Managing Director Usman Baba said foreign exchange gains constituted 18.43 per cent of the 2019 profit before tax, while it accounted for 121 per cent in the year under review.

Baba also said the pandemic resulted in negative growth in global businesses leading to low crude demand and reduced investments in most sectors, especially in the oil and gas industry.

The managing director said this translated to reduced industry activities for NETCO and other players in the sector, while some contracts were either suspended or renegotiated.

He noted that despite the challenges, NETCO was executing 15 key contracts in the industry and had continued to contribute to the development of in-country Engineering and Technical capacity.

Baba said NETCO also concluded training programme for 17 youths from Iru and its host community in Lagos State, who were given entrepreneurial skills in fish farming, computer application/web design, catering, leather works, beads making and events management.

Baba said the management had set a N36.58 billion revenue target for 2021, while the company’s board had approved a gross dividend of N400 million divided into 40 kobo per share for its shareholders.

Source: The Nation

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