Savannah Energy reports strong FY 2024 performance with significant Nigerian operations progress

Savannah Energy’s FY 2024 update reveals growth in Nigerian operations, higher revenues, and progress in renewable and hydrocarbon projects

[dropcap]S[/dropcap]avannah Energy PLC, a leading British independent energy company, has released its FY 2024 trading update, highlighting robust performance across its Nigerian operations and other markets in Africa.

Also read: Savannah Energy reports 40% revenue growth in H1 2024

The report showcases advancements in production, revenues, and significant progress in both hydrocarbon and renewable energy sectors.

In Nigeria, gross daily production averaged 23.1 Kboepd for FY 2024, maintaining a steady output compared to 23.6 Kboepd in 2023, with gas constituting 88% of production.

The company reported a substantial increase in Total Income, reaching $393.6 million, up from $289.8 million in 2023. This includes $258.7 million in Total Revenues, surpassing earlier financial guidance of over $245 million.

Cash collections also saw growth, totalling $248.5 million compared to $206 million in 2023. However, cash balances as of 31 December 2024 stood at $32.6 million, a decrease from $107.0 million the previous year, reflecting strategic investments and debt restructuring.

The midstream subsidiary, Accugas Limited, has drawn NGN 332 billion from its NGN Transitional Facility, converting funds to US$ to prepay existing debt, reducing the balance to approximately $212.3 million.

The commissioning of the $45 million Uquo Central Processing Facility compression project is advancing, set to enhance gas production capabilities.

Additionally, procurement for a two-well drilling campaign on the Uquo Field in H2 2025 is underway, targeting supplemental production capacity of up to 80 MMscfpd and potential exploration for incremental gas resources.

The company is progressing on its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, which owns a 49% non-operated interest in the Stubb Creek oil and gas field. Post-acquisition, Savannah plans to increase Stubb Creek’s gross production from 2.7 Kbopd to 4.7 Kbopd.

In Niger, Savannah continues to advance its R3 East oil development project with 35 MMstb (Gross 2C Resources). Meanwhile, the company explores alternative structures for acquiring stakes in South Sudanese oil and gas assets.

On the renewable energy front, Savannah is working on projects totalling up to 696 MW, including the Parc Eolien de la Tarka wind farm in Niger and the Bini a Warak hybrid hydroelectric and solar project in Cameroon. The company aims for a 2 GW+ renewable energy portfolio by 2026, reflecting its commitment to Africa’s energy transition.

Also read: Federal govt commends Savannah Energy for boosting Nigeria’s gas supply

Andrew Knott, CEO of Savannah Energy, remarked, “Our 2024 achievements demonstrate our dedication to both short-term performance and long-term growth. With exciting operational plans for 2025, we remain focused on delivering value across hydrocarbons and renewables.”