Rating Release

Agusto & Co. hereby affirms the “A+” rating assigned to Industrial and Medical Gases Nigeria Plc

The rating expires on 30 June 2024.

Agusto & Co. hereby affirms the “A+” rating assigned to Industrial and Medical Gases Nigeria Plc (“Industrial and Medical Gases Nigeria”, “IMG” or “the Company”). The rating reflects IMG’s good profitability and low leverage. The rating was further strengthened by the Company’s expanding capacity following the commissioning of a new liquid propane compression plant and the installation of the dry ice production machine in the financial year ended 2022 (FYE 2022). We expect these initiatives to deepen the Company’s market reach and accordingly, improve its earning capabilities. The growth of IMG’s other income generating units during the year also signifies some progress towards diversifying the Company’s earnings base. Notwithstanding the foregoing, the rating was moderated by the contracting growth of the manufacturing sector1 , foreign exchange (FX) losses arising from transactions with foreign vendors, as well as the scarcity of FX which elevates currency risk.

Industrial and Medical Gases Nigeria Plc is an entity engaged in the manufacturing of industrial and medical gases, welding and medical equipment among other lines of businesses. The Company operates through a network of branches and depots to deliver its product to customers, some of which include: oxygen, carbon dioxide, nitrogen, hydrogen, helium, acetylene, argon, nitrous oxide and medical air, among other gas forms produced in its plants.

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