Rating Release

Agusto & Co. hereby assigns a “Bbb+” rating to Jimcol Resources Nigeria Limited.

The rating expires on 30 June 2025.

Agusto & Co. hereby assigns a “Bbb+” rating to Jimcol Resources Nigeria Limited (“Jimcol” or “the Company”). The assigned rating reflects the Company’s adequate capacity to meet its maturing obligations, supported by its ability to attract patronage in an industry facing declining investments. The rating also considers Jimcol’s dollar-denominated earnings, its ability to protect its margins via effective cost optimization strategies, and the critical nature of its core service offerings to the oil and gas upstream operators. The rating is however constrained by concentration risk given that Jimcol earns the bulk of its revenue from two clients, significant security risks due to the volatile nature of the oil production hubs where the Company operates, and Jimcol’s concentrated ownership structure.

Jimcol Resource Nigeria Limited offers asset integrity and maintenance services, drilling support services, and training and consultancy services to the Nigerian oil and gas market. Since its inception in 1990, the Company has completed over 25 major contracts for leading international oil companies including ExxonMobil, Chevron and Shell Petroleum Development Company. Jimcol operates in the oil-rich Niger Delta region, known for its volatile security situation. Consequently, the company faces significant security risks, including potential threats to life and property and the possibility of failing to meet contract obligations. The Company mitigates these risks via corporate social responsibility (CSR) activities and targeted recruitment exercises to onboard host community members as staff.