Rating Release

Agusto & Co. hereby assigns an “A” long-term and an “A1” short-term rating to Arco WorldWide Services Limited (“Arco WorldWide”, “AWS” or “the Company”) with a stable outlook 

The ratings expire on 30 September 2026.

Agusto & Co. hereby assigns an “A” long-term and an “A1” short-term rating to Arco WorldWide Services Limited (“Arco WorldWide”, “AWS” or “the Company”). The ratings reflect the Company’s strong profitability performance driven by an expanding contract portfolio, its good cash flow, adequate working capital and low leverage position. The ratings also consider the increasing importance and growing adoption of drone technology across many sectors of the Nigerian economy, as well as the foreign-currency-denominated inflows which provide a natural hedge against exchange rate risk. In addition, the ratings recognise the potential of AWS’s expansion into training – undertaken in partnership with iRed, an England-based firm – which is positioned to address the critical skills gap within the Unmanned Aerial Systems (UAS) industry. However, the rating is moderated by the Company’s concentrated ownership structure, its exposure to supply chain distortions that could delay procurement and rapid pace of technological changes within the Industry.

Arco WorldWide Services Limited, incorporated in 2014 and operational since 2016, is a Nigerian drone services and consultancy company providing advanced unmanned aerial solutions across multiple sectors, with a strong focus on the Oil and Gas Industry. The Company is licensed for both Beyond Visual Line of Sight (BVLOS) and Visual Line of Sight (VLOS) commercial drone operations by the Office of the National Security Adviser (ONSA) and the Nigeria Civil Aviation Authority (NCAA). Its clients include indigenous and international oil and gas companies as well as security agencies, among others. The Company maintains strategic partnerships with leading original equipment manufacturers (OEMs) including Textron Systems (USA), Crucial Limited (UK), JUV (China) and Flyability. Arco WorldWide is a subsidiary of Arco Group Plc (formerly Arco Petrochemical Engineering Company Plc), a corporate group with over four decades of experience in Nigeria’s Oil and Gas Industry.