DataPro Assigns Jimcol Resources “A-” Stable Outlook

DataPro Limited has assigned the national scale long-term and short-term ratings of “A-“ and “A2” respectively to Jimcol Resources Nigeria Limited.

The credit rating agency said in its latest report that the rating reflects its adequate working capital, good revenue profile, experienced management and very good profitability.

In the statement signed by the company’s client services Manager, Kehinde Rasheed, DataPro explained that the assigned rating is based on the assessment of the company’s financial performance, capital adequacy, asset quality, liquidity, corporate governance as well as risk management. 

He added that Jimcol generates revenue primarily from the provision of support services to oil exploration companies in Nigeria.

According to the statement, “The company recorded a consistent growth over four years ending in 2023. It achieved a 85% increase in revenue, rising from N2.0b (Yr.22) to N3.7b by the end of December, 2023. Additionally, the company improved its profitability, recording a profit of N2.1b (Yr.23) compared to N591.6m in the year 2022. This reflects the company’s resilience in the face of inflationary pressures.“

The statement further disclosed that Jimcol also maintained a current ratio of 128% (Yr. 23), an improvement from the 104% recorded in the previous period.

 “The Long-Term Rating of “A-“ indicates Low Risk. It shows very good financial strength, operating performance, and business profile when compared to the standard  established by DataPro the statement said,” adding “This company, in our opinion, has a very strong ability to meet its ongoing obligations.

The statement also explained that the short-term rating of “A2” assigned indicates fair credit quality and adequate capacity for timely payment of financial commitments. 

DataPro, however, noted that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice, cautioning that it is not an offer to trade in  securities nor a substitute for the user’s judgment.