Here’s Savannah Energy’s performance in FY’24

Savannah Energy Plc has announced its unaudited results for the year ended December 31, 2024. The FY 2024 unaudited results show a total income of $393.8 million, compared to $289.8 million in FY 2023. This comprises of total revenues of $258.9 million, compared to $260.9 million in FY 2023, and other operating income of $134.9 million, compared to $28.9 million in FY 2023.

The results also show that Savannah Energy achieved or exceeded its previously issued financial guidance for the year, with its total revenues as of December 31, 2024 standing at $258.9 million, 6 percent ahead of previously issued guidance of greater than $245 million.

Likewise, its operating and administrative expenses for the year came to $71.0 million, 5percent below previous guidance of up to $75.0 million, with its capital expenditure at $23.1 million, well below the previously issued guidance of up to $50 million due to the phasing of spend.

The company also reported a record cash collection of $248.5 million in FY 2024, an over 21percent increase on its FY 2023 cash collections of $206 million. Its cash balances as of 31 December 2024 stood at $32.6 million, compared to $107.0 million as of December 31, 2023, and a net debt of $636.9 million, compared to $473.7 million by the end of December 2023. In the same vein, its gross debt as of December 31, 2024 was $669.5 million, of which $630.6 million (94percent) was non-recourse to Plc.

Savannah’s FY 2024 Adjusted EBITDA stood at $181.2 million, broadly in line with prior year’s $184.1 million, while maintaining its Adjusted EBITDA margin at 70percent which was 71percent in FY 2023. In terms of assets, its Total Group assets increased to $1.6 billion as of December 31, 2024, compared to $1.5 billion in 2023.

In terms of operations, the results show that its average gross daily production was 23.1 Kboepd, broadly in line with FY 2023’s 23.6 Kboepd, of which 88 percent was gas which was 91percent in FY 2023.

Read also: Savannah Energy posts strong Q1 2025 performance

The highlighted a 21percent increase in 2P Reserves at its flagship Uquo field in Nigeria, bringing the total Reserves increase on the field since acquisition to 81percent. This follows its announcement of a 29percent increase in 2P Reserves on the Stubb Creek field in May 2025.

The report further showed that Savannah agreed and extended three gas contracts with customers in FY 2024 for a total of up to 105 MMscfpd (17.5 Kboepd), and realised an average sales price of $4.68/Mscfe, an over 4 percent increase on the prior year average realised price of $4.51/Mscfe.

Savannah reported that as of December 31, 2024, N332 billion of then N340 billion term facility signed by Accugas in January 2024 with a consortium of five Nigerian banks had been drawn down, with the resulting funds converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at December 31, 2024 of approximately $212.3 million.

It also reported that it signed a $60 million debt facility in October 2024 with The Standard Bank of South Africa Limited and Stanbic IBTC Bank Limited to fund the SIPEC Acquisition.

Andrew Knott, CEO of Savannah Energy, said: “I am pleased to announce our FY 2024 results today, in line with our trading statement released in January 2025, and to announce a 21percent increase in 2P Reserves at our flagship Uquo field in Nigeria, bringing the total Reserves increase on the field since acquisition to 81percent. This follows our announcement of a 29percent increase in 2P Reserves on the Stubb Creek field in May 2025.

“2025 continues to be an exciting year for the business and we continue to work towards “ticking-off” the delivery of the nine focus area projects that we outlined at the beginning of the year, being: securing a further increase in our rate of cash collections in Nigeria; completion of the refinancing of our principal Nigerian debt facilities; completion of the planned acquisition of 100percent of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the SIPEC Acquisition) which was achieved during Q1 2025; commencement of the Stubb Creek expansion project; the advancement of our Chad/Cameroon arbitration processes; the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well; the potential advancement of our R3 East development in Niger; the refinement of our power sector business model; and the delivery of further transformational acquisitions. I would also highlight that we anticipate achieving a strong increase in cash collections in 2025 (even when set against our long-term 13 percent CAGR4), with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed,” Knott said.