Economy
FY17: NNPC’s NETCO Pays N750m Dividend Amid 34% Drop in Profit
By Modupe Gbadeyanka
A subsidiary of Nigerian National Petroleum Corporation (NNPC), the National Engineering and Technical Company Limited (NETCO), has recorded a profit before tax of N3.257 billion for 2017 financial year.
This showed a decreased by 34 percent in the year under review when compared with N4.90 billion of the previous years.
The drop, according to the NETCO Board Chairman, who is also NNPC Chief Operating Officer, Upstream, Mr Bello Rabiu, was attributable to the foreign exchange gains which constituted 56 percent before tax in 2016 as compared to 4.8 percent gain in 2017.
A breakdown of the firm’s 2017 earnings showed that there was an increase in revenue by 122 percent from N10.13 billion in the previous year to N22.46 billion in the year under review.
Speaking last Thursday at the company’s 2017 Annual General Meeting (AGM) held at the NNPC Towers in Abuja, Mr Rabiu said the operating profit of NETCO increased by 134 percent from N0.89 billion in 2016 to N2.07 billion in 2017.
He 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.
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 greater heights,” he said.
Mr Rabiu said for the first time since the establishment of NETCO, the company was declaring the highest dividend in any given year of N750 million to its shareholders at the AGM.
Speaking while receiving the cheque for the dividend, Group Managing Director of NNPC, Mr Maikanti 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.
He congratulated the outgoing MD of NETCO, Engr. Siky Aliyu, for leaving a legacy behind for his successor and expressed optimism that the company would perform better next year.
Earlier, Managing Director of NETCO, Engr. Siky Aliyu, said the company set a target to perform 600,000 man-hours of work in 2018, adding that it would continue to explore new opportunities and improve on service delivery to engender more confidence in its clients and stakeholders.
The MD, who announced his retirement from the corporation with effect from May, 2018, said he was happy to leave behind a company that has the largest Information Technology facilities in the Engineering field with a wide range of choice software for process simulations, plant modelling, structural analysis, stress analysis, designing of control systems engineering, drafting and project management.
NETCO was established in 1989 to acquire Engineering Technology through direct involvement in all aspects of Engineering in the Oil and Gas and non-oil sectors of the economy. NETCO is Nigeria’s premier indigenous Engineering Company with the strategic vision of providing Basic and Detailed Engineering, Procurement, construction Supervision and Project Management services, using state-of-the-art technology. It recently added construction and procurement to its portfolios in the industry.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.
Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.
According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.
“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.
“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”
The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.
“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.
Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.
Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.
“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.
The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.
“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.
By Aduragbemi Omiyale
The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.
The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.
The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.
In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.
Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.
The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).
Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.
In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.
Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.
The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.
Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.
A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.
ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.
The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.
As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.
Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.
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