The National Engineering and Technical Company of Nigeria (NETCO), the engineering subsidiary of the Nigerian National Petroleum Corporation, has posted a profit before tax of N6.75 billion for the year ended 31st December 2018 representing an increase of 107 percent over the N3.26 billion recorded in 2017.
Profit after tax stood at N4.597billion compared to N2.483billion recorded in 2017.
The Board Chairman, Malam Bello Rabiu, disclosed this at the company’s 29th Annual General Meeting (AGM) held in Abuja on Tuesday. He said NETCO had made the Corporation proud with its impressive performance recorded in 2018.
“Despite the challenges faced in the country, NETCO was able to record a total profit before tax of N6.75billion, which represents an increase of 107 per cent of from N3.26 billion in 2017.
“The company’s revenue also increased by 63 per cent from N22.46billion in the previous year to N36.64 billion in the year under review,” he said.
“Following the leap in profit performance, I am happy to announce that this year NETCO surpassed last year’s highest dividend record of N750 million as the company will be declaring a dividend of N1.50 to its shareholders at this AGM. Rabiu said the quantum leap in performance is attributable to two major projects undertaken within the period under review.
He listed the projects to include the Mobil Producing Nigeria Limited Major Integrity Projects (MIPs) EPC m2 and the Nigerian Petroleum Development Company (NPDC) FPSO Mystras Operations & Maintenance Contract.
“The success was also made possible through the sustained efforts on the part of the company to leverage on the continued strong support of the Shareholders and the Group Managing Director of the NNPC in particular which led to the award of some big ticket projects,” he said.
Rabiu added that NETCO ensured that these projects were delivered on time, within budget and without compromising quality in service delivery.
He added that the path to increased profitability was made smooth by the enforcement of cost-reduction measures put in place during the period and driven by the doggedness of Management and staff.
“This is an increase of 100 per cent of dividend from the previous year,” he added.
Also, NETCO Managing Director, Mr Mustapha Yakubu, said the company remained a responsible and credible corporate entity by being compliant to all applicable laws and regulations. He said that NETCO was focused on attaining the desired level of competitiveness to place it at par with other global companies in the sector.
He added that NETCO prides itself as a company that had over the years maintained a zero litigation and currently had no liability capable of exposing the shareholders to any legal risk.
He said the company’s authorised share capital remained one billion ordinary shares of N1. 00 each, adding that in year 2018 its issued share capital stood at one billion of N1. 00 per share fully paid.
He added that the company after execution of its projects had revenue increase of 63 per cent from N22.46 billion in the previous year to N36.64 billion in the year under review.
He commended the NNPC management and shareholders for their support and assured them of the company’s commitment to continue to grow the company.
