Savannah Energy, the British independent energy company focused around the delivery of Projects that Matter, has announced its unaudited half-year results for the six months ended 30 June 2024.
Andrew Knott, CEO of Savannah Energy, said:
'I am pleased to report our results for the first six months of 2024, as well as the wider progress we are making developing our business. Key highlights in H1 included the delivery of US$233m of Total Income(1) and the announcement of our planned acquisition of SINOPEC's upstream assets in Nigeria. Alongside this, we are pleased to report strong progress in the development of our renewable energy business, particularly relating to our planned projects in Niger and Cameroon. Looking forward we expect to make a series of announcements around our entry into further renewable energy projects prior to year-end. We 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 sectors.'
Highlights
- Average gross daily production of 24.4 Kboepd, a 3% increase compared to FY2023 (23.6 Kboepd);
- Up to 696 MW of renewable energy projects in motion at period-end, and targeting a portfolio of up to 1 GW+ of renewable energy projects in motion by end 2024 and up to 2 GW+ by end 2026;
- Three contracts with customers agreed and extended in the year-to-date for a total of up to 105 MMscfpd;
- Strong financial performance reported in the period:
- Total Income(1) increased by 40% to US$233.4 million (H1 2023: US$167.6 million), comprising Total Revenues2 of US$123.5 million and Other operating income of US$109.9 million;
- Operating profit of US$152.3 million, 130% higher than H1 2023 (US$66.2 million); and
- Adjusted EBITDA3 of US$91.6 million (H1 2023: US$108.2 million). This excludes Other operating income which when included shows a 47% increase year-on-year to US$201.5 million (H1 2023: US$137.1 million).
- Agreements signed to consolidate our interest in Stubb Creek through the acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited ("SIPEC") for a total consideration of US$61.5 million (the "SIPEC Acquisition"). Completion of the SIPEC Acquisition is anticipated in Q4 2024, with plans in place to more than double oil production to approximately 4.7 Kbopd within 12 months of completion;
- US$45 million compression project in Nigeria remains on-budget and on-track for completion during 2024, enabling us to maintain and grow our gas production levels over the long-term; and
- Naira denominated debt facility signed with a consortium of five Nigerian banks. This is being progressively drawn down, with the resulting funds being converted to US$ to repay the existing Accugas US$ Facility.
2024 Guidance
- Guidance is reiterated at:
- Total Revenues(2) 'greater than US$245 million';
- Operating expenses plus administrative expenses4 'up to US$75 million'; and
- Capital expenditure 'up to US$50 million'.
Source: Savannah Energy
