Total Senegal wins an investment note – Jeune Afrique

 Total Senegal, Senegalese leader in fuel distribution, obtained investment grade “A-” rating for his first, undertaken by the WARA agency.

The information was made public on November 16 by the West African rating agency based in Dakar West Africa Rating Agency (WARA). For its first rating, Total Senegal won the ‘A-’ long-term rating, investment rating, and short-term rating of “W-3″, with a stable outlook.

Companies having received investment grade may issue bonds on the WAEMU market without the need for a guarantee. Total Senegal joined the BRVM in February.

Leader

local leader in the distribution of fuels and petroleum products (23.3% of the market Interior total off lubricants in 2013), Senegal Total benefits according to the agency the power of its brand, operational support of the parent company and reputation of product quality.

Total Senegal has Furthermore, a healthy financial situation, says WARA, which highlights the lack of long-term debt, capital strength and a satisfactory return.

Challenges

However, the agency notes, because of the binding nature of the tariff policy implemented by local authorities, the distributor does not control the price of fuel it distributes on its market. Uncertainty mitigated by disciplined management of costs and investments.

Also, Total Senegal is facing the challenges of storage and the intensity of competition, with 26 actors, including Vivo Energy (former Shell ), Libya Oil, Elton, Puma Energy and Oryx, which compete a market of 2 million tonnes of petroleum products. “The credit and counterparty risk concentration are inevitable, WARA analysis. Total Senegal suffers regularly, low payment discipline of some of its counterparties. “

Total Senegal is one of three Senegalese law firms to be listed on the BRVM with operator telecom Sonatel Senegal and Bank of Africa. In 2014, Senegal recorded a total turnover of 423 billion CFA francs (€ 645 million) for an EBITDA of 6.28 billion CFA francs and a net profit of 4.9 billion CFA francs.

notation

West Africa Rating Agency, which started its activities in 2006, is led by Seydina Tandian. Since the beginning of the year, the rating agency carried the notation Ogar Assurances (May), Servair Abidjan (June) and Total.

The rating agency also has a client group Ivorian agroindustrial Sifca, CFAO Motors Côte d’Ivoire, Burkina Faso Coris Bank bank and compatriot telecoms operator Onatel

.