Rating Release

Agusto & Co. hereby affirms the “Bbb“ assigned to GPC Energy and Logistics Limited

The rating expires on 30 June 2023.

Agusto & Co. hereby affirms the “Bbb“ assigned to GPC Energy and Logistics Limited (“GPC” or the “Company”). The rating reflects our opinion on the Company’s improving profitability buttressed by its ability to adequately pass on cost increases to clients, good cash flow and adequate working capital positions. The rating is also supported by the Company’s position as a leading indigenous player in the Nigerian Road Logistics Industry and its stable, qualified and experienced management team. Nonetheless, the rating is moderated by the rising leverage metrics on account of the introduction of new borrowings, the increasing cost of operations exacerbated by the Russian-Ukraine war on global commodity prices including diesel, cost of spare parts and other consumables as well as the frail macroeconomic environment in the country heightened by inflationary pressures and currency depreciation.

GPC Energy and Logistics Limited is an independent operator principally engaged in the haulage of dry goods. The Company has a fleet size of 650 trucks with an installed capacity of 5.3 million tons annually, which makes it one of the largest players in the Nigerian Road Logistics Industry. The Company’s trucks are sourced from reputable brands such as Mercedes Benz, MAN Truck & Bus, Sinotruck, and Mitsubishi with technological advancements that ensure lower CO2 emissions, energy efficiency, capacity as well as durability are met. The Company transacts with its clients directly, adopting a B2B (business to business) model in the provision of primary and secondary levels of haulage.

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.