Improved Uquo Field Reserves Triggers Savannah Energy To $393.8m Income

Savannah Energy Plc, has announced its unaudited results for the year ended 31 December 2024, showing a Total Income of US$393.8 million, compared to US$289.8 million in FY 2023.

The acquisition of Uquo field in Nigeria and its increased reserves triggered Savannah Energy Plc to a Total Income of $393.8million in its 2024 unaudited results as against $289.8 million in 2023 financial year end.

This comprises of Total Revenues of US$258.9, compared to US$260.9 million in FY 2023, and other operating income of US$134.9 million, compared to US$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 US$ 258.9 million, 6 per cent ahead of previously issued guidance of greater than US$245 million.

Likewise, its operating and administrative expenses for the year came to US$71.0 million, 5 per cent below previous guidance of up to US$75 million, with its capital expenditure at US$23.1 million, well below the previously issued guidance of up to US$50 million due to the phasing of spend.

The company also reported a record cash collection of US$248.5 million in FY 2024, an over 21 per cent increase on its FY 2023 cash collections of US$206 million.  Its cash balances as of 31 December 2024 stood at US$32.6 million, compared to US$107.0 million as of 31 December 2023, and a net debt of US$636.9 million, compared to US$473.7 million by the end of December 2023.

In the same vein, its gross debt as of 31 December 2024 was US$669.5 million, of which US$630.6 million (94%) was non-recourse to Plc. Savannah’s FY 2024 Adjusted EBITDA stood at US$181.2 million, broadly in line with prior year’s US$184.1 million, while maintaining its Adjusted EBITDA margin at 70 per cent which was 71 per cent in FY 2023.

In terms of assets, its Total Group assets increased to US$1.6 billion as of 31 December 2024, compared to US$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 per cent was gas which was 91 per cent in FY 2023.

The highlighted a 21 per cent increase in 2P Reserves at its flagship Uquo field in Nigeria, bringing the total Reserves increase on the field since acquisition to 81 per cent. This follows its announcement of a 29 per cent 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 realized an average sales price of US$4.68/Mscfe, an over 4% increase on the prior year average realised price of US$4.51/Mscfe.

Savannah reported that as of 31 December 2024, ₦332 billion of then ₦340 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 31 December 2024 of approximately US$212.3 million.

It also reported that it signed a US$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.

CEO of Savannah Energy, Andrew Knott said: “in line with our trading statement released in January 2025, and to announce a 21% increase in 2P Reserves at our flagship Uquo field in Nigeria, bringing the total Reserves increase on the field since acquisition to 81%. This follows our announcement of a 29% 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 Nigeria1; completion of the refinancing of our principal Nigerian debt facilities; completion of the planned acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the “SIPEC Acquisition”) which was achieved during Q1 2025.”