The National Engineering and Technical Company Limited (NETCO), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), for the first time since its establishment, has declared a N750 million dividend payout to NNPC.
NETCO Board Chairman, who is also NNPC Chief Operating Officer, Upstream, Mallam Bello Rabiu, stated this at the company’s 2017 Annual General Meeting (AGM) in Abuja, noting that the N750 million dividend payout to NNPC by NETCO to its shareholders is the highest in the history of the company.
The breakdown also shows that the company’s revenue increased by 122 per cent from N10.13 billion in the previous year to N22.46 billion in the year under review with operating profit increasing by 134 per cent from N0.89 billion in 2016 to N2.07 billion in 2017.
Rabiu noted that the impressive result was the outcome of improved performance in project execution and cost reduction measures put in place during the period, in addition to and the new addition of construction and procurement portfolios in the company’s activities basket.
He, however, stated that the profit before tax decreased by 34 per cent in the year under review when compared with N4.90 billion of the previous years, stressing that the decrease was attributable to the foreign exchange gains, which constituted 56 per cent profit before tax in 2016 as compared to 4.8 per cent gain in 2017.
The COO Upstream said the remarkable figures were made possible through sustained efforts on the part of the company to cash in on the strong support of the Group Managing Director of the corporation, Dr. Maikanti Baru, and the shareholders.
“The strong support of the GMD, that of 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 move to greater heights.
Speaking while receiving the cheque for the dividend, the NNPC GMD, Baru, commended the management of NETCO for the unprecedented performance.
He assured the company of his continued support, stressing that based on its performance, he would ensure NETCO got more projects, especially in the gas sector.