Average Gross Daily Production up 12% YoY and Total Revenues1 & Adjusted EBITDA2 both up 8% YoY
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that
Matter, is pleased to announce its unaudited half-year results for the six months ended 30 June 2023.
Andrew Knott, CEO of Savannah Energy, 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 Revenues1 and Adjusted EBITDA2 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.”
Operational Highlights
• Average gross daily production from Nigerian operations was 25.3 Kboepd, a 12% increase from 22.5 Kboepd
during H1 2022. Robust customer demand led to a 15% increase in gas production from the Uquo Field to 138.5
MMscfpd (H1 2022: 120.3 MMscfpd);
• Strong safety record, with our 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:
o 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 our gas customers (with deliveries having commenced in May); and
o 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;
• 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; and
• First disclosure report for Sustainability Accounting Standards Board (“SASB”) published today here.
Financial Highlights3
• Total Revenues1 increased by 8% to US$138.7 million (H1 2022: US$128.7 million);
• Adjusted EBITDA2 increased by 8% to US108.2 million (H1 2022: US$100.3 million);
• Adjusted EBITDA2 margin strong and stable at 78% (H1 2022: 78%);
• Operating expenses plus administrative expenses4 of US$27.4 million (H1 2022: US$24.5 million);
• Profit after tax (including contribution from discontinued operations) of US$46.8 million (H1 2022 loss after tax:
US$20.5 million); and
• Net debt position at period end of US$443.4 million (FY22: US$404.9 million) with Leverage5 broadly stable at
1.9x (Year-end 2022: 1.8x).
2023 Guidance
• Total Revenues1 guidance reiterated at ‘greater than US$235 million’;
• Group Operating expenses plus administrative expenses4 guidance reiterated at ‘up to US$75 million’; and
• 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.
South Sudan Acquisition Update
Further to the Company’s announcement on 27 July 2023, the Company continues to advance the various
workstreams required to complete the acquisition of PETRONAS International Corporation Limited’s energy business
in South Sudan (the “PETRONAS Acquisition”) and now intends to publish an AIM Admission Document in respect
of the PETRONAS Acquisition on or before 15 December 2023, following such point the Company will seek restoration
to trading on AIM of its ordinary shares.
Niger Update
Savannah remains committed to the 35 MMstb (Gross 2C Resources) R3 East oil development in South East Niger.
As previously announced, the intention was to carry out a well test programme on our principal discoveries in Q4
2023. However, following recent political events, this timeline will be subject to further revision due to restrictions
imposed by the Economic Community of West African States on Niger, which has resulted in the closure of the
border between Benin and Niger. This has created logistical challenges for companies operating in Niger and,
specifically for Savannah, in relation to the importation of the necessary equipment to complete our planned well
test programme. A further update in relation to timing will be provided in Q4 2023.
Savannah continues to progress the up to 250 MW Parc Eolien de la Tarka wind farm project, with all key required
studies either complete or at an advanced stage. Savannah also announced the signing of an agreement for the
development of two proposed solar photovoltaic power plants, each up to 100 MW in scale, during the period and
work is at an initial stage on these projects.
Divestment of Interest in COTCo
On 20 April 2023, Savannah announced that its wholly owned subsidiary, Savannah Midstream Investment Limited
(“SMIL”), had signed a Share Purchase Agreement with the national oil company of Cameroon, Société Nationale
Des Hydrocarbures (“SNH”) for the sale of 10% of the issued share capital in Cameroon Oil Transportation Company
(“COTCo”). The cash consideration for the shares was US$44.9 million and SMIL also retained the right to the
dividend attaching to the shares up to the payment date of the consideration. Formal completion of the sale shall
occur upon satisfaction of certain conditions precedent related to amendments to the bylaws of COTCo. Please refer
to Note 20 of the interim financial statements for further information on the accounting treatment of the transaction.
Board Update
Following the Annual General Meeting held on 30 June 2023, Steve Jenkins retired as Chair but remains on the
Board as an independent Non-Executive Director. Joseph Pagop Noupoué was appointed Non-Executive Chair,
having joined the Board as a Non-Executive Director in April 2023. Sylvie Rucar retired as a Non-Executive Director
from the Board post-period end due to personal reasons.
Fenikso Limited (“Fenikso”)
As previously detailed, in 2022 Savannah invested approximately US$1 million (“the Initial Investment”) in Fenikso
(previously known as Lekoil Limited) and, under the terms of the restructuring agreements negotiated between
Savannah and Fenikso entered into in December 2022, the Company will receive payments of up to US$16.3 million
over the course of the next nine years. Post-period end, Savannah has fully recovered the Initial Investment with
the receipt from Fenikso of payments totalling US$1.3 million to date.
Chad Assets Update
As previously disclosed in the Group’s 2022 Annual Report, the Republic of Chad nationalised the Group’s interests
in Chad owned by its subsidiaries, Savannah Chad Inc (“SCI”) and Savannah Midstream Investment Limited
(“SMIL”), (the “Chad Assets”) by way of a law passed on 31 March 2023 (the Nationalisation”). This confirmed an
announcement of the President of Chad of 23 March 2023.
The actions of the Republic of Chad are in breach of the upstream conventions to which SCI and the Republic of
Chad are, amongst others, party, together with a breach of the convention between Tchad Oil Transportation
Company (“TOTCo”) and the Republic of Chad. Further details are provided in Notes 2, 22 and 23 of the financial
statements. Disputes under the upstream conventions and the TOTCo convention are subject to the jurisdiction of
ICC arbitral tribunals, seated in Paris. SCI and SMIL have commenced ICC arbitral proceedings against the Republic
of Chad to seek full recompense for the loss that they have and will suffer as a result of the nationalisation of the
Chad Assets.
Following the period end, a dispute has also arisen among the shareholders of COTCo. SMIL has initiated
appropriate court and ICC arbitral proceedings to protect its interests as a shareholder in COTCo.
