NETCO posts 137% increase in operating profit for 2023, targets 5% increase in market share through EPC projects

The NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC Ltd), has announced a 137 percent increase in operating profits for the year 2023.

This was disclosed by the Chairman of the company’s Board of Directors and Executive Vice President, Downstream, NNPC Limited, Mr. Adedapo Segun, at the company’s 34th Annual General Meeting held in Lagos on Friday.

The Board Chairman explained that NETCO recorded a 101 percent revenue increase in the year 2023, reflecting a turnaround in operating results, which rose by 137 percent, reversing the previous year’s deficit.

According to a statement by Mr. Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., there was a 145 percent surge in the company’s gross profit compared to the previous year.

Also speaking at the AGM, the Managing Director of NETCO, Dr. Tonye Alagba, said the company is focused on growing 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 minimize risks,” Alagba stated.

The NETCO helmsman further stated that the company aims to increase its market share by at least five percent through participation in mainstream EPC projects, stressing that the company will bid for a minimum of 32 tenders with a target of securing at least 15 contracts.

He listed other targets to include: a 21-day invoicing cycle; a minimum of 85 percent debt collection efficiency; a minimum customer satisfaction rate of 71 percent; the acquisition of critical assets such as fabrication yards and offshore logistics support bases; and the development of exclusive collaborations with key technical partners like KBR and Petrofac, among others.

NETCO is a subsidiary of NNPC Limited with the mandate of delivering qualitative, integrated, and cost-effective Engineering, Procurement and Construction Management (EPCM) services for Nigeria’s oil and gas industry and beyond.