H1 2022: Savannah Energy reports $128.7m revenue
Savannah Energy Plc, the British independent energy company focused around the delivery of Projects in Nigeria and other African countries is pleased to announce its unaudited interim results for the six months ended 30 June 2022.
Reacting to the exciting results, Andrew Knott, CEO of Savannah Energy, said: “Our half year results again demonstrate the continued strong underlying progress we have made in our existing producing business with a 10% year-on-year increase reported for both Total Revenues1 (to US$128.7m) and Adjusted EBITDA2 (to US$100.3m).
“Further, I am pleased to report that our growth trajectory has continued into H2, with average daily production to 26 September 2022 having increased by 55% to 34.8 Kboepd versus the H1 average of 22.5 Kboepd and 118% versus the 16.0 Kboepd level at the time of acquisition in November 2019.
“This H2-to-date growth reflects the impact of the three new gas sales contracts and the contract extension we have announced in 2022, with Accugas now supplying gas to approximately 24% of Nigeria’s thermal power generation capacity as compared to approximately 10% at the time of the original acquisition. In the first half, we also announced agreements for the development of up to 750 MW of large-scale greenfield solar and wind projects in Niger and Chad, which have the potential to transform the electricity access rates in both countries.
“Looking forward to the rest of 2022 and 2023, I remain confident in where we are as a business. We look forward to closing our Proposed Acquisitions of the Chad and Cameroon Assets in Q4 of this year. We expect to deliver on or exceed our financial guidance. We expect to announce further hydrocarbon acquisitions and to expand our Renewable Energy Division with several new large-scale greenfield opportunities currently under review and negotiation. We continue to work towards completing the refinancing of our Nigerian debt and to announce the development and exploration plans for our assets in Niger.”
He expressed to all of those who contributed to the progress of the firms business in H1, including colleagues, host governments, communities, local authorities and regulators, shareholders and lenders, and customers, suppliers and partners.
New gas sales agreements, GSAs, were signed with Central Horizon Gas Company Limited, CHGC, a major gas distribution company situated in theSouth-South region of Nigeria, and TransAfam Power Ltd, a licensed power generation company in Nigeria and, post-period-end in August 2022, with Notore Chemical Industries PLC for its fertiliser plant.
These customers are accessed via Accugas’ pipeline network to Ikot Abasi and on to the Port Harcourt area via third party infrastructure, thus no capital expenditure is required.
Equally, a contract extension was signed with First Independent Power Limited, FIPL, to supply gas to its Eleme and Trans Amadi power plants, bringing the total number of power plants supplied under the contract to three, including the FIPL Afam power plant.
Also, during the period, Savannah commenced gas deliveries to three new customers in Nigeria, FIPL’s Trans Amadi power plant, TransAfam’s power plants in Rivers State, and CHGC.
Savannah now has operational GSAs with power plants comprising 24 per cent of Nigeria’s thermal generation capacity.
Meanwhile, average gross daily production, of which 89 per cent was gas, remained almost constant during H1 2022 at 22.5 Kboepd (H1 2021: 22.6 Kboepd). The broadening of its customer base during H1 2022 has enabled the company to increase gas deliveries to support Nigeria’s power generation needs.
