A subsidiary of the Nigerian National Petroleum Corporation (NNPC) -National Engineering and Technical Company Limited (NETCO’s) operating profit increased by 130 percent from N2.07 billion in 2017 to N4.75 billion in 2018,  its chairman, Mallam Bello Rabiu, has said.

In his statement at the 29th Annual General Meeting of the company in Abuja yesterday, he recalled that in the previous year, the company’s revenue rose by 63 per cent (N2.68 billion) from  N22.46 billion  to N36.64 billion in the year under review.

He added despite the challenges in the industry, the firm was able to record a total profit before tax of N6.75 billion which represents an increase of 107 per cent from N3.26billion in 2017.

His words: “Despite the challenges faced in the industry, NETCO was able to record a total profit before tax of N6.75billion which represents an increase of 107 per cent from N3.26 billion in 2017.

“The company’s revenue also increased by 63 per cent from N22.46 billion in the previous year to N36.46billion in the year under review. The operating profit of the company increased by 130 per cent (N2.68billion) from N2.07 billion in 2017 to N4.75 billion in 2018.”

Owing to the leap in profit performance, according to Rabiu, NECTO overshot its last year’s highest dividend record of N750 million, and the company declared a dividend of N1.50 billion to its shareholders at the meeting.

He said that the leap was an increase of 100 percent dividend from the previous year.

The chairman however attributed the achievements in the year under review to two major projects: Mobil Producing Nigeria (MPN) Major Integrity Projects (MIPs) EPCm2 and NPDC FPSO Mystras  Operations & Maintenance Contract; and the enforcement of cost reduction measures that were adopted during the period with the management and staff doggedness.

Rabiu said that the success was also through the sustained efforts on the part of the company to leverage on the continued strong support of the shareholder and Group Managing Director in particular, which culminated in the award of some big ticket projects.

NECTO, he said, ensured that the projects were delivered on time, within budget and without compromising quality in service delivery.

Presenting his management report, the Managing Director, Engr. Mustapha Yakubu said that authorized share capital of the company remained 1,000,000,000 ordinary share of N1.00 each.

He explained that in 2018, the issued share capital stood at 1,000,000,000 of N1.00 per share, fully paid-up by the shareholders. While 99,999,995 shares were due to the Nigerian National Petroleum Corporation,  five shares were due to Nigerian Petroleum Development Company Limited.

In year 2018, according to Yakubu, there was no acquisition of the company’s shares.

He revealed that the company’s staff strength as at December 31, 2018 stood at 380 comprising 77 NNPC staff, 88 NETCO Direct Staff and 215 Project Staff.

He revealed that the company’s staff strength as at December 31, 2018 stood at 380 comprising 77 NNPC staff, 88 NETCO Direct Staff and 215 Project Staff.