Savannah Energy announces H1 2024 results with 3% increase in Nigerian production
Savannah Energy PLC, a British independent energy company, has announced its unaudited half-year results for the period ending June 30, 2024, revealing a robust financial performance marked by a 3 percent increase in production in Nigeria.
Total income surged by 40 percent to $233.4 million, up from $167.6 million in the same period last year. This increase includes total revenues of $123.5 million and other operating income of $109.9 million. The company reported an operating profit of $152.3 million, a remarkable 130 percent rise from $66.2 million in H1 2023. Adjusted EBITDA was $91.6 million, compared to $108.2 million in H1 2023, but including other operating income, EBITDA increased by 47 percent year-on-year to $201.5 million.
Operating and administrative expenses amounted to $75 million, with capital expenditure reaching $50 million. In Nigeria, Savannah’s average gross daily production for the period was 24.4 Kboepd, a slight increase from 23.6 Kboepd in FY 2023.
The company’s renewable energy initiatives also advanced, with 696 MW of projects underway. Savannah aims to become one of Africa’s largest renewable energy developers, targeting a portfolio of over 1 GW of projects by the end of 2024 and up to 2 GW by 2026.
CEO Andrew Knott stated, “I am pleased to report our results for the first six months of 2024, including a total income of $233 million and our planned acquisition of SINOPEC’s upstream assets in Nigeria. We are making significant strides in our renewable energy business, particularly in Niger and Cameroon, and anticipate further announcements on new projects by year-end.”
In Nigeria, Savannah’s subsidiary, Accugas Limited, successfully extended three gas contracts totaling up to 105 MMscfpd. This includes a 12-month extension with First Independent Power Limited and a new agreement with Ibom Power Company to supply gas following the expiration of a prior contract.
The company is progressing on a $45 million compression project at the Uquo Central Processing Facility, expected to be completed in 2024, alongside plans for additional development in the Uquo field.
In March 2024, Savannah announced the proposed acquisition of SIPEC, which holds a 49 percent non-operated interest in Stubb Creek. This acquisition, expected to close in Q4 2024, will increase Savannah’s reserves and production capabilities, positioning it as a significant gas supplier in Nigeria.
In Niger, Savannah continues its commitment to the R3 East oil development, with the newly operational Niger-Benin pipeline facilitating access to international markets. The company is also advancing its Parc Eolien de la Tarka wind farm project, which is set to be West Africa’s largest wind farm, alongside photovoltaic solar power initiatives.
In Cameroon, progress is being made on the Bini a Warak Hybrid Hydroelectric and Solar Project, with an increase in capacity from 75 MW to 95 MW following recent project redesigns.
Savannah Energy remains in discussions regarding potential transactions in South Sudan, with updates expected soon.
Savannah has initiated arbitral proceedings against the Government of Chad regarding the nationalisation of its rights in the Doba fields and other related breaches. The company is claiming over $840 million for these nationalisations and is prepared to pursue its rights vigorously if necessary.
In June 2024, Savannah published its Task Force on Climate-Related Financial Disclosures report and its first report aligned with the United Nations Sustainable Development Goals, reaffirming its commitment to sustainability across its operations in Africa.
Savannah Energy PLC is an AIM-quoted company active in Nigeria, Cameroon, Chad, and Niger, focused on delivering impactful energy projects.
