The National Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has reported a profit before tax of N3.37 billion for the year ended Dec. 31, 2020.
The News Agency of Nigeria (NAN) reports that Mr Adeyemi Adetunji, Chairman, Board of Directors, NETCO, made the disclosure on Thursday at the company’s 2020 Annual General Meeting in Lagos.
Adeyemi said the profit before tax rose by 53 per cent when compared with N2.20 billion achieved in the corresponding of 2019.
Adetunji noted 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 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 the NNPC’s three Refineries Rehabilitation Projects as the main consultant for the first time.
He 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.
Adetunji commended the Group Managing Director of NNPC, Mr Mele Kyari, the NETCO management and staff as well as other stakeholders for the efforts toward achieving the company’s mandate.
Also, Mr Usman Baba, Managing Director, NETCO, explained that foreign exchange gains constituted 18.43 per cent of the 2019 profit before tax, while it accounts for 121 per cent in the year under review.
Baba noted that 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.
He said the reduced industry translated to reduced industry activities for NETCO and other players in the sector, while some existing contracts were either suspended or renegotiated.
Baba said despite these challenges, NETCO was currently executing 15 key contracts in the industry and had continued to contribute to the development of in-country Engineering and Technical capacity.
He said NETCO had also concluded training programme for 17 youths from Iru land who were provided with entrepreneurial skills in fish farming, computer wpplication/web design, vatering, leather works, beads making and events management.
Baba said the management was targeting a revenue of N36.58 billion for 2021 financial year.
NAN reports that the board approved a gross dividend of N400 million, which translated to 40k per share for its shareholders.