Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa is pleased to provide a financial and operational update for the year to date.
Andrew Knott, CEO of Savannah Energy, said: “We are pleased to be updating our 2022 financial guidance this morning, driven by the significant year-on-year increase in production volumes that has been delivered in Nigeria – the fourth year in a row.
“Looking forward to 2023 we are excited by the opportunities available to the business in all the four countries in which we operate in across Africa in both the hydrocarbon and renewable energy sectors and look forward to updating investors further next year.”
YTD Unaudited Financial Highlights
Total Revenues1 up 27% y-o-y to US$256.7m for the 11 months ended 30 November 2022 (year to date period ended 30 November 2021: US$201.4m);
- Group cash balance of US$193.1m2 and net debt of US$310.1m3 (as at 30 November 2021: US$149.5m and
US$370.2m respectively); - We update our FY 2022 guidance4 as follows:
- Total Revenues1 of greater than US$270m (increased from US$215m);
- Group Operating expenses plus administrative expenses5 unchanged of up to US$75m;
- Group Depreciation, Depletion and Amortisation unchanged of US$21m fixed for infrastructure assets plus US$2.3/boe; and
- FY 2022 capital expenditure of up to US$35m (reduced from up to US$85m).
YTD Operational Highlights
Average gross daily Nigeria production in the year-to-date period ended 30 November 2022 was 27.1 Kboepd, a 22% increase from the average gross daily production of 22.2 Kboepd in the same period last year;
- Of the total average gross daily production of 27.1 Kboepd in the year-to-date period, 90% was gas, including a 25% increase in production from the Uquo gas field compared to the same period last year, from 117.4 MMscfpd (19.6 Kboepd) to 147.3 MMscfpd (24.6 Kboepd);
- Following Savannah’s completion of the acquisition of ExxonMobil’s upstream and midstream asset portfolio in Chad and Cameroon and assumption of the operatorship of the upstream assets on 9 December 2022, production in Chad has continued uninterrupted at an average gross daily rate of approximately 28 Kbopd; and
- In 2022, we have expanded our customer base, signing additional gas sales agreements with three new customers, including the Central Horizon Gas Company, TransAfam Power Limited and Notore Chemical Industries, as well as agreeing a contract extension with First Independent Power Limited to supply three of its power plants, FIPL Afam, Eleme and Trans Amadi. As a result, Savannah now supplies gas to 24% of Nigeria’s thermal power generation capacity.
Nigeria Average Gross Daily Production
| Uquo Gas (MMscfpd) | Uquo Condensate (Kbopd) | Stubb Creek Oil (Kbopd) | Total (Kboepd) | |
| 1 January – 30 November 2022 | 147.3 | 0.3 | 2.3 | 27.1 |
| % of total production | 90.4% | 0.9% | 8.6% | 100% |
| 1 January – 30 November 2021 | 117.4 | 0.1 | 2.5 | 22.2 |
| % of total production | 88.1% | 0.5% | 11.4% | 100% |
| % Increase | 25% | 120% | -8% | 22% |
Note that Nigeria production levels are largely driven by customer nomination levels, while cash collections are largely driven by contractual maintenance adjusted take-or-pay provisions.
