The National Engineering and Technical Company Limited (NETCO), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has declared a dividend of N750 million to its shareholders – the highest in any given year.
The dividend payout comes on the heels of a 34 percent drop in the company’s profit from N4.90 billion in 2016 to N3.257 billion in its 2017 financial year.
Speaking on Thursday at the company’s 2017 annual general meeting held at the NNPC Towers in Abuja, Bello Rabiu, NETCO chairman and NNPC chief operating officer, said this arose from “foreign exchange gains which constituted 56 percent before tax in 2016 as compared to 4.8 per cent gain in 2017”.
He said overall, the financial results were “impressive” because of the subsidiary’s “success in executing a large number of projects,” as well as “sustained efforts to cash in on support from the corporation and its numerous shareholders.”
“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,” he said.
“Operating profit of NETCO increased by 134 percent, from N0.89 billion in 2016 to N2.07 billion in 2017.
“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 the new construction and procurement portfolios in the company’s activities basket.
“The strong support of the GMD (Maikanti Baru), 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 greater heights.”
While commending the management of NETCO for the “exceptional performance,” Maikanti Baru, group managing director (GMD), NNPC, said he would “offer continuous support, ensuring that the company is awarded new contracts, especially in the gas sector.”
He congratulated Siky Aliyu, outgoing managing director of NETCO, for “leaving a legacy behind for his successor” and voiced optimism that the company would “perform better in the coming financial year.”
Aliyu had announced his retirement from the corporation which will go into effect from May, 2018.