Rating Release

Agusto & Co. assigns an “A+” rating to Industrial and Medical Gases Nigeria Plc with stable outlook

The rating expires on 30-06-23

Agusto & Co. assigns an “A+” rating to Industrial and Medical Gases Nigeria Plc (“IMG Plc”, “IMG” or “the Company”). The assigned rating reflects the Company’s financial condition evidenced by its good and sustainable cash flow, adequate working capital, consistent track record of business expansion with equity and the sustained low leverage position with the absence of debt in the capital structure. This is in addition to the Company’s leading position and long track record of operations in the Nigerian Industrial Gas Industry. The rating also considers IMG’s stable, experienced and qualified management team as well as the various expansion initiatives which we believe would result in a higher earnings capacity over the medium to long term. However, the rating is tempered by the concentrated ownership structure, rising energy prices which adversely affect operating costs and margins and the persistent foreign exchange crisis which impacts the Company’s ability to replace its plants and spare parts.

Industrial and Medical Gases Nigeria Plc is a leading manufacturer of various speciality gases in Nigeria. The Company has operated for over six decades and has undergone several transitioning and changes in ownership as well as business names over these years. IMG (formerly known as BOC Gases Nigeria Plc) was previously owned by BOC Holdings Limited (United Kingdom) but following the divestment of the ultimate beneficiary – Linde Group (a German-based chemical company) in August 2021, IMG Plc is now mainly owned by TY Holdings Limited.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.