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Savannah Energy announces 2023 half-year results with 12% increase in Nigerian production

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Savannah Energy PLC, the British independent energy company with a focus on impactful projects, has announced its unaudited half-year results for the six months ending June 30, 2023.

The H1 2023 Unaudited Financial Results showcase a notable 8% growth in the company’s total revenue, reaching US$138.7 million compared to US$128.7 million in H1 2022. Adjusted EBITDA also exhibited an 8% increase, reaching US$108.2 million (H1 2022: US$100.3 million), maintaining a robust and stable adjusted EBITDA margin of 78%.

Savannah recorded operating and administrative expenses at US$27.4 million, slightly higher than H1 2022’s US$24.5 million. Impressively, the company achieved a profit after tax of US$46.8 million, a significant turnaround from the H1 2022 loss after tax of US$20.5 million. The net debt position for the period stood at US$443.4 million.

Operationally, the average gross daily production from Nigeria saw a commendable 12% increase to 25.3 Kboepd, up from 22.5 Kboepd in H1 2022. Additionally, gas production from the Uquo Field experienced a substantial 15% growth to 138.5 MMscfpd, up from 120.3 MMscfpd in H1 2022.

During H1 2023, Savannah successfully supplied gas to eight principal customers, finalizing new and extended gas contracts. These agreements included deals with prominent entities such as Amalgamated Oil Company Nigeria Limited, Shell Nigeria Gas Limited, and Shell Petroleum Development Company of Nigeria Limited.

Andrew Knott, CEO of Savannah Energy, expressed satisfaction with the robust results, highlighting a 12% increase in average gross daily production and an 8% growth in total revenues and adjusted EBITDA for the first half of 2023.

Knott also emphasized the expansion of the Renewable Energy division, with new projects added to the development portfolio, reaching up to 676 MW across three countries, on track to achieve over 1 GW. Simultaneously, Savannah is progressing with the proposed acquisition of PETRONAS International Corporation Limited’s energy business in South Sudan, with plans to publish an AIM Admission Document in Q4 2023.

He concluded by affirming Savannah Energy’s commitment to delivering on its strategy as an “AND” company, focusing on strong short-term and long-term performance across both the hydrocarbon and renewable energy sectors.

Further to the Company’s announcement on 27 July 2023, the Company continues to advance the various workstreams required to complete the acquisition of PETRONAS International Corporation Limited’s energy business in South Sudan (the “PETRONAS Acquisition”) and now intends to publish an AIM Admission Document in respect of the PETRONAS Acquisition on or before 15 December 2023, following such point the Company will seek restoration to trading on AIM of its ordinary shares.

Savannah revealed that it remains committed to the 35 MMstb (Gross 2C Resources) R3 East oil development in South East Niger. As previously announced, the intention was to carry out a well test programme on our principal discoveries in Q4 2023. However, following recent political events, this timeline will be subject to further revision due to restrictions imposed by the Economic Community of West African States on Niger, which has resulted in the closure of the border between Benin and Niger. This has created logistical challenges for companies operating in Niger and, specifically for Savannah, in relation to the importation of the necessary equipment to complete our planned well test programme. A further update in relation to timing will be provided in Q4 2023.

Savannah continues to progress the up to 250 MW Parc Eolien de la Tarka wind farm project, with all key required studies either complete or at an advanced stage. Savannah also announced the signing of an agreement for the development of two proposed solar photovoltaic power plants, each up to 100 MW in scale, during the period and work is at an initial stage on these projects.

On 20 April 2023, Savannah announced that its wholly owned subsidiary, Savannah Midstream Investment Limited (“SMIL”), had signed a Share Purchase Agreement with the national oil company of Cameroon, Société Nationale Des Hydrocarbures (“SNH”) for the sale of 10% of the issued share capital in Cameroon Oil Transportation Company (“COTCo”). The cash consideration for the shares was US$44.9 million and SMIL also retained the right to the dividend attaching to the shares up to the payment date of the consideration. Formal completion of the sale shall occur upon satisfaction of certain conditions precedent related to amendments to the bylaws of COTCo. Please refer to Note 20 of the interim financial statements for further information on the accounting treatment of the transaction.

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