DataPro Limited has assigned Jimcol Resources Nigeria Limited national scale long-term and short-term ratings of A- and A2 respectively. The credit rating agency’s latest report states that the ratings reflect Jimcol’s adequate working capital, good revenue profile, experienced management, and very good profitability. The assigned rating is based on an assessment of Jimcol’s financial performance, capital adequacy, asset quality, liquidity, corporate governance, and risk management. Jimcol generates revenue primarily from providing support services to oil exploration companies in Nigeria.
The company experienced consistent growth over four years, with an 85% increase in revenue from N2.0 billion in 2022 to N3.7 billion by the end of December 2023. Profitability also improved, with a profit of N2.1 billion in 2023 compared to N591.6 million in 2022. These results demonstrate the company’s resilience in the face of inflationary pressures. Jimcol’s current ratio improved to 128% in 2023, up from 104% in the previous period.
The Long-Term Rating of A- indicates low risk and signifies very good financial strength, operating performance, and business profile according to DataPro. The company is considered to have a strong ability to meet its ongoing obligations. The Short-Term Rating of A2 indicates fair credit quality and adequate capacity for timely payment of financial commitments.
DataPro states that the rating has a maximum shelf life of 12 calendar months in line with international best practice. They also caution that it is not an offer to trade in securities nor a substitute for the user’s judgment.