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Axxela Rated BBB plus Long-Term (NG), A2 Short-Term (NG)- GCR; Outlook Stable

Oil & Gas	1895 VIEWS
Oil & Gas
1895 VIEWS

Sunday, October 27, 2019 05:30PM /Press Release by Axxela/ Header Image Credit: Axxela

Axxela Limited, one of Africa's fast-growing power and gas companies, has been recently rated BBB+ Long-Term and A2 Short-Term by Credit Rating Agency, GCR. According to a recent Press Release by Axxela the Rating Agency considered the companies short and long-term outlook to be stable.

Growing The Virtual and Embedded Power Pipeline

Commenting on the rating, Axxela's Chief Executive Officer, Bolaji Osunsanya remarked: "GCR's rating of our company is a significant indicator of our improved performance, strategic initiatives, and overall impact of our operations in providing innovative energy solutions within key economic clusters across the region. As the partner of choice, we have a formidable stable of stakeholders positioned to actualise our projects, especially within the virtual pipeline, gas processing and distribution, and embedded power spaces."

According to the Release the Rating was a confirmation of the companies position as a leader in the oil and gas and power businesses. Axxela's Chief Financial Officer, Tim Ononiwu noted that, "The attainment of this rating for the second year running speaks volumes about our corporate reputation, fiscal credibility, profitability, and balance sheet optimisation, which are integral to our growth initiatives. We take immense pride in our corporate governance and fiscal responsibility, thus better positioning us to anticipate the needs of our client base and the larger market"

Ratings Rationale

GCR based its recent rating of the gas company on the following basis:

Axxela is embarking on several gas infrastructure developments which are expected to be delivered in the short-medium term.
Axxela has reported strong revenue growth, supported by rising volumes, higher selling prices and an expanded clientele base.
Axxela's position is also strengthened by strategic partnerships, long term distribution arrangements, and strong relationship with technical partners.

Related Fact

Axxela recently received an upgraded corporate credit rating from "Bbb" to "Bbb+" with a Positive Outlook by Agusto & Co., one of Nigeria's foremost rating agencies.

About Axxela

Axxela is a Helios Investment Partners LLP portfolio company, and a designated natural gas shipper on the West African Gas Pipeline (WAGP). Axxela is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 160 industrial and commercial customers via a vast network of gas infrastructure. With over 280km in gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company Limited.