The NNPC Engineering and Technical Company (NETCO) is looking to increase its market share of Engineering Procurement and Construction (EPC) management services in the oil and gas industry.
Dr. Tonye Alagba the Managing Director of NETCO, stated this during the company’s Annual General Meeting (AGM), held in Lagos, he also added that the company plans to increase its portfolio in the coming years.
The aim is to boost its market share by at least 5% by participating in mainstream EPC projects, with a commitment to bid on a minimum of 32 tenders and secure at least 15 contracts.
Additional targets include achieving a 21-day invoicing cycle, attaining a minimum of 85 per cent debt collection efficiency, ensuring a customer satisfaction rate of at least 71%, acquiring critical assets such as fabrication yards and offshore logistics support bases, and developing exclusive collaborations with key technical partners like KBR and Petrofac, among others.
He said, “To achieve this, the company is working strategically to expand its service offerings within the oil and gas industry in 2024, invest in the development of human and other resources, reduce direct and overhead resources and minimize risks”
The Chairman of the company’s board, Mr. Adedapo Segun announced a 137% increase in operating profits for the year 2023.
The Board Chairman explained that NETCO achieved a 101% revenue increase in 2023, marking a significant turnaround in operating results with a 137% rise, reversing the previous year’s deficit.
He also highlighted a 145% surge in the company’s gross profit compared to the previous year. In 2022, the company posted a profit before tax of N5.53 billion and grew its asset base by 20% while total revenue then was N13.87 billion.
NETCO is subsidiary of NNPC Limited who is mandated to provide high-quality, integrated, and cost-effective Engineering, Procurement, and Construction Management (EPCM) services for Nigeria’s Oil & Gas Industry and beyond.
The NNPC NETCO currently handles a range of projects in the oil and gas sector including the rehabilitation of the Port-Harcourt refinery and Kaduna refineries. Others include the Kano Independent Power Plant project (Kano IPP), OML 58 solarisation, SNEPCO EPCM and others.
