Rating Release 

Agusto & Co. hereby affirms the “A” (long-term) and “A1” (short-term) ratings assigned to ARCO Worldwide Services Limited, with a stable outlook. 

The rating expires on 30 June 2027. 

Agusto & Co. hereby affirms the “A” (long-term) and “A1” (short-term) ratings assigned to ARCO Worldwide Services Limited (“ARCO Worldwide”, “AWS” or “the Company”). The affirmation reflects the Company’s resilient earnings and operating cash flow generation, as well as the growing contribution of recurring contracts to its revenue base. The ratings also recognise AWS’ adequate working capital, low leverage, robust equity base and established relationships with major oil and gas clients, all of which provide financial flexibility as the Company scales its operations. In addition, the ratings consider the increasing adoption of unmanned aerial systems (UAS) across commercial and government applications in Nigeria, alongside AWS’ technical capabilities and established industry relationships. Nevertheless, the ratings are constrained by rising receivables arising from delays in invoice processing and settlement by international oil companies (IOCs) and other clients, which continue to exert pressure on cash flow and working capital management. However, the strong credit profiles of these counterparties provide comfort, given the minimal impairment losses recorded to date.

ARCO Worldwide Services Limited was incorporated in 2014 and commenced operations in 2016. The Company provides unmanned aerial solutions across the oil and gas, energy, maritime, military and defence, agriculture and telecommunications sectors. It is licensed by the Office of the National Security Adviser (ONSA) and the Nigerian Civil Aviation Authority (NCAA) to conduct commercial drone operations, including Beyond Visual Line of Sight (BVLOS) and Visual Line of Sight (VLOS) operations. Its clientele includes Renaissance Africa Energy Company Limited, Chevron Nigeria Limited, TotalEnergies Exploration and Production Nigeria Limited, Nigeria LNG Limited (NLNG) and the Nigerian Army, among others. ARCO Worldwide maintains strategic relationships with international technology providers, including Textron Systems, Crucial Limited, JOUAV and Flyability. The Company is a subsidiary of ARCO Group PLC, an indigenous oil and gas servicing group with over four decades of operating experience in Nigeria.