TIDMSAVE
RNS Number : 2938K
Savannah Energy Plc
20 December 2022
20 December 2022
Savannah Energy PLC
("Savannah" or "the Company")
Financial and Operational Update Year to Date with
22% Increase in Average Gross Daily Production
Savannah Energy PLC, the British independent energy company
focused around the delivery of Projects that Matter in Africa is
pleased to provide a financial and operational update for the year
to date.
Andrew Knott, CEO of Savannah Energy, said:
"We are pleased to be updating our 2022 financial guidance this
morning, driven by the significant year-on-year increase in
production volumes that has been delivered in Nigeria - the fourth
year in a row. Looking forward to 2023 we are excited by the
opportunities available to the business in all the four countries
in which we operate in across Africa in both the hydrocarbon and
renewable energy sectors and look forward to updating investors
further next year."
YTD Unaudited Financial Highlights
-- Total Revenues(1) up 27% y-o-y to US$256.7m for the 11 months
ended 30 November 2022 (year to date period ended 30 November 2021:
US$201.4m);
-- Group cash balance of US$193.1m(2) and net debt of
US$310.1m(3) (as at 30 November 2021: US$149.5m and US$370.2m
respectively);
-- We update our FY 2022 guidance (4) as follows:
o Total Revenues(1) of greater than US$270m (increased from
US$215m);
o Group Operating expenses plus administrative expenses (5) unchanged of up to US$75m;
o Group Depreciation, Depletion and Amortisation unchanged of
US$21m fixed for infrastructure assets plus US$2.3/boe; and
o FY 2022 capital expenditure of up to US$35m (reduced from up
to US$85m) .
YTD Operational Highlights
-- Average gross daily Nigeria production in the year-to-date
period ended 30 November 2022 was 27.1 Kboepd, a 22% increase from
the average gross daily production of 22.2 Kboepd in the same
period last year;
-- Of the total average gross daily production of 27.1 Kboepd in
the year-to-date period, 90% was gas, including a 25% increase in
production from the Uquo gas field compared to the same period last
year, from 117.4 MMscfpd (19.6 Kboepd) to 147.3 MMscfpd (24.6
Kboepd);
-- Following Savannah's completion of the acquisition of
ExxonMobil's upstream and midstream asset portfolio in Chad and
Cameroon and assumption of the operatorship of the upstream assets
on 9 December 2022, production in Chad has continued uninterrupted
at an average gross daily rate of approximately 28 Kbopd; and
-- In 2022, we have expanded our customer base, signing
additional gas sales agreements with three new customers, including
the Central Horizon Gas Company, TransAfam Power Limited and Notore
Chemical Industries, as well as agreeing a contract extension with
First Independent Power Limited to supply three of its power
plants, FIPL Afam, Eleme and Trans Amadi. As a result, Savannah now
supplies gas to 24% of Nigeria's thermal power generation
capacity.
Nigeria Average Gross Daily Production
Uquo Gas Uquo Condensate Stubb Creek Total
(MMscfpd) (Kbopd) Oil (Kbopd) (Kboepd)
------------- ----------
1 January - 30 November
2022 147.3 0.3 2.3 27.1
----------- ------------- ----------
% of total production 90.4% 0.9% 8.6% 100%
----------- ---------------- ------------- ----------
1 January - 30 November
2021 117.4 0.1 2.5 22.2
----------- ---------------- ------------- ----------
% of total production 88.1% 0.5% 11.4% 100%
----------- ---------------- ------------- ----------
% Increase 25% 120% -8% 22%
----------- ---------------- ------------- ----------
N.B. - Percentages in this table are calculated from exact
numbers, the figures above are rounded.
Note that Nigeria production levels are largely driven by
customer nomination levels, while cash collections are largely
driven by contractual maintenance adjusted take-or-pay
provisions.
For further information, please refer to the Company's website
www.savannah-energy.com or contact:
+44 (0) 20 3817
Savannah Energy 9844
Andrew Knott, CEO
Nick Beattie, CFO
Sally Marshak, Head of IR &
Communications
+44 (0) 20 7409
Strand Hanson (Nominated Adviser) 3494
James Spinney
Ritchie Balmer
Rob Patrick
finnCap Ltd (Joint Broker)
Christopher Raggett +44 (0) 20 7220
Tim Redfern 0500
Panmure Gordon (UK) Ltd (Joint
Broker)
John Prior
Hugo Rich +44 (0) 20 7886
James Sinclair-Ford 2500
+44 (0) 20 3757
Camarco 4983
Billy Clegg
Owen Roberts
Violet Wilson
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
About Savannah Energy:
Savannah Energy PLC is an AIM quoted British independent energy
company focused around the delivery of Projects that Matter in
Africa, active in Cameroon, Chad, Niger and Nigeria.
Further information on Savannah Energy PLC can be found on the
Company's website: www.savannah-energy.com .
Footnotes:
1. Total Revenues are defined as the total amount of invoiced
sales during the period. This number is seen by management as more
accurately reflecting the underlying cash generation capacity of
the business in comparison to Revenue recognised in the
Consolidated Statement of Comprehensive Income.
2. Within cash balance of US$193.1m, are amounts which are held
for debt service purposes and US$1.6m is restricted cash which
includes cash collateral and stamp duty escrow balances.
3. Net debt (defined as 'Total long and short term debt
exclusive of lease liabilities less Cash at bank and other escrow
monies) includes a Senior Secured Note with a call option, which is
subject to final review. Any change in this option value will
impact the reported net debt.
4. 2022 guidance relates only to the Nigerian and Nigerien
assets (and does not include the impact of completion of the Chad
and Cameroon acquisition in December 2022).
5. Operating expenses plus administrative expenses are defined
as total cost of sales, administrative and other operating expenses
excluding transaction costs, royalty and depletion, depreciation
and amortisation.
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END
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