British independent energy company, Savannah Energy, has reported improved activities in Nigeria which resulted in a 8 per cent rise to US$138.7 million in revenue in the first half of 2023.
The result was contained in its unaudited half-year results for the six months ended 30 June 2023.
Highlights of the company’s finances showed that total revenue increased by 8 per cent to US$138.7 million as against US$128.7 million reported in H1, 2022.
Operating expenses plus administrative expenses was up of US$27.4 million against H1 2022 of US$24.5 million, while Profit After Tax, PAT, including contribution from discontinued operations was put at US$46.8 million as against H1 2022 loss after tax of US$20.5 million); and net debt position at period end of US$443.4 million (FY22: US$404.9 million).
Total capital expenditures guidance reduced from ‘up to US$60 million’ to ‘up to US$30 million’, reflecting the rephasing of certain planned capital projects in Niger and Nigeria.
Chief executive officer(CEO) of the firm, Andrew Knott, commenting on the outcome said: “I am pleased to report robust results for the first six months of 2023, which demonstrate our continuing ability to deliver strong operational performance.
“Average gross daily production increased by 12% to 25.3 Kboepd, while Total Revenues(1 )and Adjusted EBITDA(2) both increased by 8% during the first half of the year.
“The expansion of our Renewable Energy division has continued apace, with several new projects added to our development portfolio in the first half of the year. We now have up to 676 MW of projects in motion across three countries as we quickly move towards the achievement of up to 1 GW+.
“At the same time, we continue to progress our proposed acquisition of PETRONAS International Corporation Limited’s energy business in South Sudan, with the intention to publish an AIM Admission Document in Q4 2023.
We continue to deliver on our strategy and remain 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 renewable energy areas.”
Meanwhile, the company’s gross daily production from Nigerian operations was 25.3 Kboepd, a 12 per cent increase from 22.5 Kboepd during H1 2022.
Robust customer demand led to a 15 per cent increase in gas production from the Uquo Field to 138.5 MMscfpd (H1 2022: 120.3 MMscfpd).
Also, its Nigerian operations recording one million working hours without a Lost Time Injury; Gas sold to eight principal customers, with a number of new and extended gas contracts agreed, including an agreement with Amalgamated Oil Company Nigeria Limited (“AMOCON”), whereby Savannah’s Accugas subsidiary agreed to purchase up to 20 MMscfpd of gas from AMOCON over the course of the next ten years for onward sale to its gas customers (with deliveries having commenced in May); and new gas sales agreement with Shell Nigeria Gas Limited (“SNG”) and a contract extension with Shell Petroleum Development Company of Nigeria Limited (“SPDC”).
This strong momentum continued post-period end with contract extensions signed with Central Horizon Gas Company Limited (“CHGC”), First Independent Power Limited (“FIPL”) and Notore Chemical Industries PLC (“Notore”) for a total of up to 85 MMscfpd.
There are also up to 676 MW of renewable energy projects now in motion, including agreements signed during the period for the up to 75 MW Bini a Warak Hydroelectric Project in Cameroon and for the development of two proposed solar photovoltaic power plants in Niger with combined capacity of up to 200 MW.
