NETCO Posts 137% Increase in Operating Profit for 2023
The Nigerian National Petroleum Company Limited (NNPC Ltd) subsidiary, NETCO, has reported a significant financial turnaround for the year 2023, showcasing a 137% increase in operating profits. This remarkable performance was shared by Mr. Adedapo Segun, the Chairman of NETCO’s Board of Directors and Executive Vice President of Downstream, during the company’s 34th Annual General Meeting held in Lagos.
Highlights from NETCO’s 2023 performance include:
– A 101% increase in revenue, marking a significant improvement over the previous year’s performance.
– A 137% rise in operating results, turning around from the prior year’s deficit.
– A 145% surge in gross profit compared to the previous year.
Looking ahead, NETCO is strategizing to expand its service offerings within the oil and gas sector in 2024. Dr. Tonye Alagba, Managing Director of NETCO, outlined several initiatives aimed at business growth:
– Increasing market share by at least 5% through active participation in Engineering, Procurement, and Construction (EPC) projects.
– Targeting to bid for a minimum of 32 tenders with the goal of securing at least 15 contracts.
– Optimizing operational efficiencies, including a 21-day invoicing cycle and achieving at least 85% debt collection efficiency.
– Enhancing customer satisfaction to a minimum rate of 71%.
– Acquiring critical assets such as fabrication yards and offshore logistics support bases.
– Developing exclusive collaborations with key technical partners like KBR and Petrofac.
NETCO’s focused approach to expanding its capabilities and market presence is set to fortify its position within Nigeria’s oil and gas industry, promising sustained growth and improved service delivery.