Victor Ezeja
Savannah Energy, a British independent energy company, has released its 2024 unaudited financial record, revealing 35 per cent growth in total income. The update covers its business activities in Nigerian and other African markets.
Total Income Growth
According to a statement shared by the company on Wednesday, it had a total income of $393.6 million in 2024, which reflects 35 per cent increase when compared to $289.8 million in 2023 financial year (FY). The report said this consists of total revenues of $258.7 million and other operating income of $134.9 million.
Join our WhatsApp ChannelThe report also shows that Savannah’s FY 2024 total revenues were ahead of the previously issued financial guidance of greater than $245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to $75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to $50 million’) due to the phasing of spend.
According to the report, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as of 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
Gross Production
For production, the report indicated a slight decrease in average gross production from 23.6 Kboepd in 2023 to 23.1 Kboepd in 2024. Out of it, 88 per cent was gas in 2024 against 91 per cent in FY 2023.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its N332 billion of the Nigerian Naira Transitional Facility, with the resulting funds being converted to US dollars, which, along with cash held, was used to partially prepay the existing Accugas $ Facility, leaving a balance as at 31 December 2024 of approximately $212.3 million.
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The report also provided new updates on Accugas’ $45 million Uquo Central Processing Facility compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49 per cent non-operated interest in the Stubb Creek oil and gas field (Stubb Creek), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
Renewable Energy Projects
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
Speaking on the 2024 performance, CEO of Savannah Energy, Andrew Knott, said: Financial Year trading update demonstrates the continued progress the company has made in 2024. According to him, the company recorded the highest level of cash collections ever in their Nigerian business.
Knot projected that 2025 will be an exciting year for the Company, adding that it has a large planned operational programme in Nigeria which is expected to enhance both oil and gas production capacity. He highlighted some projects saying: “We intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors,” he added.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
