Savannah Energy PLC has announced its 2021 Annual Report and Audited Accounts with Full Year total revenues increasing to US$230.5 million, more than 7 per cent higher than FY 2020 total revenues of US$215.9 million.
The British Energy company which is focused on Africa, in a statement made available to Prime Business Africa, said it is targeting completion of entry into Chad and Cameroon in Q3 2022 and further hydrocarbon acquisitions.
This is ahead of the Company’s previously issued FY 2021 guidance of Total Revenues of greater than US$205 million.
Average realised gas price of US$4.19/Mscf was +6 per cent higher than the average realised gas price of US$3.96/Mscf in 2020. Similarly, average realised liquids price in 2021 was US$69.9/bbl, a +51 per cent increase compared to the 2020 average realised liquids price of US$46.2/bbl.
Total cash collections from the Company’ Nigerian assets increased from US$167.4m recorded in FY 2020 to US$208.2m. This represents an increase of +24 per cent.
The Group cash balances of US$154.3m as at 31 December 2021 was higher than the Group cash balances of US$106.0m recorded in FY 2020. This is an increase of +46 per cent.
Other highlights include:
Andrew Knott, CEO of Savannah Energy, said: “2021 was a fantastic year for Savannah. Our Total Revenues12 and Adjusted EBITDA2 grew by 7% year-on-year to US$231m and US$175m respectively. We organically increased our Net 2P reserves by 20% to 77.7 MMboe. We announced our potentially transformational acquisition of a large portfolio of upstream and midstream assets in Chad and Cameroon, which upon completion we now expect will more than double our corporate free cashflow. We established a Renewable Energy Division which, post period, has signed agreements for up to 750 MW of large scale greenfield solar and wind projects. We successfully renewed and amalgamated our Niger PSC areas, paving the way for the progression of our intended 35 MMstb R3 East development and a return to exploration activity in the licence areas. Our performance against key industry sustainability metrics relating to HSE performance, carbon intensity, senior management gender diversity and local employee ratios remain industry leading.
Looking forward to the rest of 2022, I am confident in where we are as a business. We expect to deliver on our financial guidance. We expect to complete our entry to Chad and Cameroon during Q3 2022 and to likely announce further hydrocarbon acquisitions. We expect to further grow our Renewable Energy Division, with several new large-scale greenfield opportunities under review and negotiation. We expect to finalise the refinancing of our Nigerian debt and to announce the development and exploration plans for our assets in Niger.
Most of all we will maintain our focus around the delivery of Projects that Matter in Africa. I would like to express my gratitude to all of those who contributed to our success in 2021 – my incredibly dedicated and passionate colleagues, our host governments, communities, local authorities and regulators, our shareholders and lenders, and our customers, suppliers and partners. Thank you all.”
Key FY 2021Operationl Highlights
Update on Savannah’s Sustainability Strategy
Savannah’s focus in 2021 was on articulating the level of ambition across the four pillars of our sustainability strategy: (1) Promoting socio-economic prosperity; (2) Ensuring safe and secure operations; (3) Supporting and developing our people; and (4) Respecting the environment. We conducted an exercise to benchmark the Company’s performance against industry peers and leaders, which helped us to develop our strategy and link key performance metrics to our ambitions and to the 13 relevant United Nations Sustainable Development Goals which anchor our strategy. In particular, the following key performance metrics were identified to measure performance and progress, many of which are industry-leading:
During 2021 and 2022, we have implemented the Company’s new sustainability performance and reporting framework across the Group. We implemented a digital tool to track our performance on our key sustainability indicators on a month-by-month and country-by-country basis and have integrated seven leading sustainability reporting standards into our reporting framework. We plan to publish the respective detailed disclosure reports setting out our alignment to each standard during H2 2022.
Savannah is pleased to have been recognised for the progress in our sustainability reporting to date, having been shortlisted for ‘ESG Initiative of the Year’ at the Chartered Governance Institute UK & Ireland (“CGI”) Awards in November last year and, more recently, shortlisted for ‘Best ESG Materiality Reporting (Small Cap)’ at the IR Magazine Awards – Europe 2022.
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