Andrew Knott of Savannah Energy: Results demonstrate continued strong underlying progress

Andrew Knott, CEO, of Savannah Energy #SAVE say their interim results demonstrate the continued strong underlying progress they have made in their existing producing business with a 10% year-on-year increase reported for both revenues1 to $128.7m and adjusted EBITDA to $100.3m.

H1 2022 Financial Highlights

·  Total Revenues1 of US$128.7m (up 10% on H1 2021: US$116.5m);

· Adjusted EBITDA2 of US$100.3m (up 10% on H1 2021: US$91.5m);

· Operating expenses plus administrative expenses3 of US$24.5m (H1 2021: US$22.4m);

· Loss before tax of US$11.3m (H1 2021 profit before tax: US$7.7m);

· Capital expenditure of US$14.0m (H1 2021: US$5.2m);

· Net debt position as at 30 June 2022 of US$327.1m (Year-end 2021: US$370.0m) with Adjusted Leverage4 of 2.0x (Year-end 2021: 2.5x); and

· Total cash5 of US$182.8m as at 30 June 2022 (Year end 2021: US$154.3m)

H1 2022 Operational Highlights

· New gas sales agreements ("GSAs") were signed with Central Horizon Gas Company Limited ("CHGC"), a major gas distribution company situated in the South-South region of Nigeria, and TransAfam Power Ltd, a licensed power generation company in Nigeria and, post-period-end in August 2022, with Notore Chemical Industries PLC for its fertiliser plant.  These customers are accessed via Accugas' pipeline network to Ikot Abasi and on to the Port Harcourt area via third party infrastructure, thus no capital expenditure is required;

· A contract extension was signed with First Independent Power Limited ("FIPL") to supply gas to its Eleme and Trans Amadi power plants, bringing the total number of power plants supplied under the contract to three, including the FIPL Afam power plant;

· During the period, Savannah commenced gas deliveries to three new customers in Nigeria, FIPL's Trans Amadi power plant, TransAfam's power plants in Rivers State, and CHGC.  Savannah now has operational GSAs with power plants comprising 24% of Nigeria's thermal generation capacity;

· Average gross daily production, of which 89% was gas, remained almost constant during H1 2022 at 22.5 Kboepd (H1 2021: 22.6 Kboepd). The broadening of our customer base during H1 2022 has enabled us to increase gas deliveries to support Nigeria's power generation needs;

· A new gas production well, Uquo 11, commenced production in April 2022 and produced at an average rate of 68 MMscfpd up to 30 June 2022; and

· Our Renewable Energy Division signed agreements for the development of up to 750 MW large-scale greenfield solar and wind projects with the Governments of Niger (Parc Eolien de la Tarka) and Chad (Centrale Solaire de Komé and Centrales d'Energie Renouvelable de N'Djamena).

To read the full RNS click here