Savannah energy posts strong four-month performance with 17% revenue

Ahead of its Annual General Meeting on 1 June 2026, Savannah Energy PLC, the British independent energy company has posted an increase in revenue by seventeen percent (17%) for the four months, ended 30 April 2026.

The company reported that following the completion of the SIPEC acquisition in March 2025, the production expansion program underway at Stubb Creek has delivered an 8 percent increase in average gross daily production to 3.1 Kbopd for the period, compared to 2.8 Kbopd during the same period in 2025. Its group average gross daily production for the four-month period stood at 15.7 Kboepd, down from 18.8 Kboepd in full-year 2025, as gas production volumes were constrained by ongoing drilling and operational activity as well as customer gas demand.

The update shows that revenues increased by 17 percent year-on-year to US104.1 million, compared to US89.1 million in the same period last year. It also shows that the trade receivables balance declined by 22 percent to US395.2 million from US507.2 million at year-end 2025.

The company also reported cash balances of US64.7 million during the four-month period, compared to the 31 December 2025 figure of US42.8 million, while its net debt stood at US641.7 million compared to the US658.6 million recorded at year-end 2025.

According to the update, Savannah’s cash collections for the four months ended 30 April amounted to US183.5 million, representing a 48 percent increase from the US89.1 million received during the same period in 2025.

Savannah also reported that it has entered into a new £32 million unsecured loan facility with NIPCO plc, its largest shareholder. The facility is structured in two tranches, with £20 million available immediately and £12 million available from 1 July. The loan carries a 4.5 percent annual interest rate and has a 36-month term.

The facility includes a conversion option that allows Savannah to repay the loan through the issuance of new shares at 8 pence per share. NIPCO cannot require conversion, and Savannah is under no obligation to issue shares. The transaction constitutes a related party transaction under AIM rules.

The report highlighted the operational progress being made across key African assets, including Uquo and Stubb Creek, as well as the continued advancement of its wind, solar, and hydropower projects. It notes that drilling and completion activities at the Uquo NE well location have now been concluded, with rig-down operations currently underway ahead of mobilization to the next well.

Flowline installation is in its final stages, with tie-in activities ongoing at the Uquo CPF, while tie-in works at the well pad are expected to commence shortly. First gas is targeted for early July 2026, which will support the higher forecast gas production expected in the second half of 2026. Site construction activities at the Uquo South exploration well location are progressing well, with the site expected to be ready by early June 2026, just as conductor piling operations are also ongoing in preparation for the rig move from the Uquo NE location.

In Niger, Savannah reports that its Parc Eolien de la Tarka project has made significant progress, with the Minister of Energy confirming that the initiative is on the government’s list of priority projects. The company expects the timing and sequencing of further development activities in relation to the project to be linked to the timing and outcome of its ongoing discussions with the Government of Niger regarding the R1234 PSC and the potential recommencement of oil activities.

In Cameroon, negotiations with the government are at an advanced stage regarding a Joint Development Agreement for the hybrid hydroelectric and solar project in Bini a Warak, which has a capacity of up to 95 MW. This agreement is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to further develop the project.

Commenting, Andrew Knott, CEO of Savannah Energy, stated that Savannah continues to deliver against the nine core focus areas set out for the business at the start of 2025.

He noted that in Nigeria, the company has seen a significant improvement in cash collections, with a 48 percent year-on-year increase in the first four months of the year, alongside a 17 percent year-on-year increase in revenues and a 22 percent reduction in the trade receivables balance since year-end 2025.

He emphasized that this reflects an ongoing focus on disciplined cash collections and receivables management, which remains a key priority for the business this year.

Knott added that operationally, the company is advancing a number of important projects, including the drilling of two new gas wells at the Uquo field, and the production expansion program at Stubb Creek which has already delivered an 8 percent increase in average daily production compared to the first four months of 2025.

In the power division, the team continues to progress its greenfield wind, solar, and hydro portfolio. Alongside these initiatives, Savannah continues to pursue further value-accretive acquisitions across both hydrocarbons and power, with several opportunities under active discussion.

He concluded by expressing pleasure in securing the new £32 million loan facility from NIPCO plc, which strengthens financial flexibility and underpins confidence in delivering continued operational, financial, and strategic progress through 2026 and 2027.