Savannah Energy (SAVE) , an Africa-focused oil and gas company, issued a trading update for the full year 2024 (FY24).
Savannah reported average daily production of 23.1 Kboepd for FY24, broadly in line with the previous year, of which 88% was gas. Savannah had 696 MW of renewable energy projects in motion at period-end, including the 250 MW Parc Eolien de la Tarka wind farm project in Niger and the 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. SAVE reiterated its target of 2GW+ of renewables in motion by end of 2026.
Financially, Savannah's total income jumped to US$393.6m from last year's US$289.8m, comprising total revenues of US$258.7m and other operating income of US$134.9m. The latter primarily relates to the rebilling of forex losses incurred by Accugas (SAVE's 80%-owned Nigerian gas processing and distribution subsidiary) as it converted Naira cash received into US dollars.
Total revenues were ahead of previously issued guidance of 'greater than US$245m', while the group reiterated its FY24 guidance for operating and admin expenses of 'up to US$75m'. SAVE also said it expected FY24 capex to be lower than the previously guided 'up to US$50m'.
FY24 cash collections was US$248.5m, up from US$206m LY. As of December 31 2024, Savannah's cash balance was US$32.6m, with net debt of US$634m. Additionally, NGN 332bn of Accugas's transitional facility had been drawn down at period-end, with the resulting funds converted to USD and used to partially prepay Accugas's existing USD facility, leaving a balance on December 31, 2024 of c. US$212.3m.
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Savannah reports a 36% jump in total revenues to US$393.6m in FY24, significantly ahead of previously issued guidance of US$245m, with full-year capex expected to be lower than previously guided US$50m due to the phasing of spend. SAVE's Nigerian business recorded its highest income to date, with strong momentum into FY25 as the business commences its new operational programme in the country, expected to boost oil and gas production and capacity significantly.
Specifically, the commissioning of SAVE's US$45m Uquo central processing facility compression project in Nigeria is now underway, while procurement of long lead equipment is advancing in preparation for a two-well drilling campaign on the Uquo field in H2 2025. An additional gas development well is expected to add up to 80 MMscfpd of supplemental production capacity, and a potential exploration well is targeting a GIIP of 154 Bscf (25.7 MMboe) of incremental gas resources.
In March 2024, Savannah agreed to acquire 100% of SIPEC, whose main asset is a 49% interest in the Stubb Creek field in Nigeria, consolidating SAVE's interest in the asset. The acquisition is expected to complete in Q1 2025. SAVE plans to double production from the field to 4.7 Kbopd within a year via a de-bottlenecking programme.
SAVE had also been in discussions to acquire PETRONAS' assets in South Sudan (149 Kbopd production in 2023), however the original agreement was terminated in August 2024. Talks are ongoing around an alternative transaction in relation to the assets, with an update expected by end of February 2025. In Niger, Savannah plans to advance a 35 MMstb (Gross 2C Resources) R3 East oil development project in the southeast of the country.
Savannah's ambitious energy diversification strategy is advancing at pace with 696 MW of renewable projects in motion throughout Africa. The company continues to move toward its target of 2 GW of renewable projects in motion by end of 2026.
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