NNPC subsidiary NETCO posts 137% profit increase in 2023, sets 2024 ambitious goal

The NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC Ltd.), has reported a remarkable 137 per cent increase in operating profit for the year 2023.

This significant financial upturn was revealed at the company’s 34th Annual General Meeting held in Lagos on Friday.

Adedapo Segun, Chairman of NETCO’s Board of Directors and Executive Vice President, Downstream, NNPC Limited, highlighted the company’s impressive financial performance.

“NETCO recorded a 101 per cent revenue increase in 2023,” Segun announced. “This reflects a turnaround in operating results, reversing the previous year’s deficit with a 137 per cent rise in profits.”

A statement on Wednesday by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, stated that the company’s gross profit also surged by 145 per cent compared to the previous year, marking a strong recovery and a testament to effective management and strategic planning.

Strategic Goals for 2024 and Beyond

During the AGM, Dr Tonye Alagba, Managing Director of NETCO, outlined the company’s forward-looking strategies aimed at sustaining and enhancing its growth trajectory. Alagba emphasised NETCO’s focus on expanding its service offerings within the oil and gas industry.

“To achieve our growth objectives, we are investing in the development of human and other resources, reducing direct and overhead costs, and minimizing risks,” Alagba stated.

A key part of NETCO’s strategy is to increase its market share by at least five per cent through active participation in mainstream Engineering, Procurement, and Construction (EPC) projects.

The company plans to bid for a minimum of 32 tenders, aiming to secure at least 15 contracts.

Operational Targets and Investments

NETCO has set several ambitious operational targets, including:

• Reducing the invoicing cycle to 21 days
• Achieving a minimum debt collection efficiency of 85 per cent
• Ensuring a customer satisfaction rate of at least 71 per cent
• Acquiring critical assets such as fabrication yards and an offshore logistics support base
• Developing exclusive collaborations with key technical partners like KBR and Petrofac

These goals are part of NETCO’s broader mandate to deliver high-quality, integrated, and cost-effective Engineering, Procurement, and Construction Management (EPCM) services for Nigeria’s oil and gas industry.

The significant financial gains reported by NETCO in 2023, coupled with its strategic plans for 2024, underscore the company’s commitment to growth and excellence. As NETCO continues to expand its market presence and enhance its service offerings, it aims to solidify its position as a leading player in Nigeria’s oil and gas sector.

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