NNPC Subsidiary Declares First Dividend Since 1989

By Ikenga Chronicles April 13, 2018

NNPC Subsidiary Declares First Dividend Since 1989

The National Engineering and Technical Company Limited(NETCO), a subsidiary of the Nigerian National Petroleum Corporation(NNPC)on Friday declared a 122 percent revenue increase for the 2017 financial year.

Disclosing this, the NNPC Chief Operating Officer(COO), Upstream, Bello Rabiu, said from about N10.13 billion in 2016 it earned about N22.46 billion in the year under review.

Also, operating profit of the company, which is the technical arm of the NNPC increased by 134 percent, from N0.89 billion in 2016 to N2.07 billion in 2017.

Mr. Rabiu, who is also NETCO Board Chairman, said at the 2017 Annual General Meeting (AGM) of the body, at the NNPC Towers in Abuja, Thursday, that the profit before tax was about N3.257 billion.

The profit before tax, however, decreased by 34 percent in the year compared with N4.90 billion of the previous years due to foreign exchange gains, which constituted about 56 percent before tax in 2016 as compared to 4.8 percent gain in 2017.

He said the “impressive result was the outcome of improved performance in project execution and cost reduction measures put in place during the period.”

The COO Upstream said the figures were made possible through sustained efforts on the part of the company to cash in on the support by the Group Managing Director of the NNPC, Maikanti Baru, and the shareholders.

“The strong support of the GMD, the shareholders, in addition to award of some big-ticket jobs which NETCO delivered on time, within budget, and without compromising on quality of service delivery, made it possible for the remarkable figures.

“The performance has reinforced to all stakeholders that given the right environment, NETCO is poised to get to greater heights,” the board chairman said.

Mr Rabiu said for the first time since its establishment, NETCO declared N750 million as dividend.

The Group Managing Director of NNPC, Mr. Baru, commended the management of NETCO for what he called “unprecedented performance” and assured of continued support.

Meanwhile, NETCO, Nigeria’s premier indigenous engineering company, was established in 1989 to acquire engineering technology through direct involvement in all aspects of engineering in the oil and gas and non-oil sectors of the economy.

The company specialises in providing basic and detailed engineering, procurement, construction supervision and project management services, using state-of-the-art technology.