Savannah Energy Reports $116.5M Total Revenue For H1, 2021

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Yemisi Izuora

Savannah Energy Plc, with high potential energy projects in Nigeria has released its unaudited interim results for the six months ended 30 June 2021 and outlook for the FY 2021.

Andrew Knott, CEO of Savannah Energy, said:, “These results show just how far we have come this year, with US$116.5m of Total Revenues1, US$91.5m of Adjusted EBITDA2 and strong free cash flow. Our operational performance has been excellent which is important to all our stakeholders as we continue to play a vital role in driving economic growth and living standards in our countries of operation. This growth is set to continue as we progress discussions with ExxonMobil with respect to the proposed acquisition of its entire upstream and midstream assets in Chad and Cameroon and begin an anticipated new investment programme on our Niger assets, over which we are pleased to have agreed terms for an extension of up to 10 years.

I’d like to thank all of our shareholders and other stakeholders for their continued support as we look to capitalise on the opportunities available to us.”

In the result, Total Revenues1 of US$116.5m (up 2 per cent on H1 2020 Total Revenues of US$114.6m), was recorded in line with 2021 guidance of over US$205m for the full year with average realised gas price of US$4.2/Mscf (H1 2020: US$3.9/Mscf) and an average realised liquids price of US$63.5/bbl (H1 2020: US$48.3/bbl);

• Cash collections from the Nigerian Assets in H1 2021 were US$101.6m compared to US$82.1m in H1 2020;

Average gross daily production, of which 88.6 per cent was gas, increased 6 per cent during H1 2021 to 22.6 Kboepd (H1 2020: 21.3 Kboepd). This includes a 6 per cent increase in production from the Uquo gas field compared to the same period last year, from 113.5 MMscfpd (18.9 Kboepd) to 120.2 MMscfpd (20.0 Kboepd).

On 5 February 2021 Accugas signed a new gas sales agreement with Mulak Energy Limited representing Savannah’s entry into Nigeria’s high-growth compressed natural gas market while on 2 June 2021, Savannah announced that the Company is in exclusive discussions with ExxonMobil Corporation with respect to the proposed acquisition of its entire upstream and midstream asset portfolio in Chad and Cameroon.

Similarly, on 7 June 2021, Savannah published its re-focused sustainability strategy as part of the 2020 Annual Report focusing on four key strategic pillars with the strategy anchored around the 13 most relevant UN Sustainable Development Goals where we believe Savannah can have the biggest economic, environmental, social and governance impact

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