*Eyes operations in Chad and Cameroon by Q3 2022
Savannah Energy Plc, the British independent energy company focused around the delivery of projects in Africa, has recorded a full year revenues of US$230.5million in 2021 financial year, reflecting an increase of seven per cent over 2020 total revenues of US$215.9million and more than the Company’s previously issued full year 2021 guidance of ’total revenues of greater than US$205million’.
This was revealed in the company’s 2021 annual report and audited accounts.
According to the report, average realised gas price of US$4.19 per million standard cubic feet (MMscf) which was 6 per cent higher than the average realised gas price of US$3.96/Mscf in 2020. Similarly, average realised liquids price in 2021 was US$69.9 per barrel (bbl), indicating a 51 per cent increase compared to the 2020 average realised liquids price of US$46.2/bbl.
Total cash collections from the Company’ Nigerian assets increased from US$167.4million recorded in full year 2020 to US$208.2million representing an increase of 24 per cent.
The Group cash balances of US$154.3million as at 31 December 2021 was higher than the Group cash balances of US$106.0million recorded in 2020, showing an increase of 46 per cent.
Other highlights include adjusted EBITDA of US$175.0 million, a 7 per cent increase over 2020 Adjusted EBITDA of US$163.2million; while adjusted EBITDA margin remained broadly unchanged at 76 per cent.
Group operating expenses plus administrative expenses of US$49.9million in 2021 initial guidance of US$55-65million; Group Depreciation, Depletion and Amortisation of US$36.2million in 2021 initial guidance of US$38.3m based on the actual produced volumes); Capital Expenditure for the year of US$32.5million in 2021 initial guidance of up to US$65million; Group net debt of US$370.0million as at 31 December 2021 decreased by 9 per cent when compared to 2020 year-end Group net debt of US$408.7million; while total Group assets amounted to US$1,349million at year-end as against 2020 US$1,207million.
The company successfully announced a proposed placing to raise US$65.8million of equity financing and secured up to US$432million of debt financing for the proposed Chad and Cameroon Asset Acquisitions. The equity financing was completed in January 2022.
Commenting, Andrew Knott, CEO of Savannah Energy, said: “2021 was a fantastic year for Savannah. Our Total Revenues12 and Adjusted EBITDA2 grew by 7 per cent year-on-year to US$231million and US$175million respectively. We organically increased our Net 2P reserves by 20 per cent to 77.7 million barrels of oil equivalent (MMboe). We announced our potentially transformational acquisition of a large portfolio of upstream and midstream assets in Chad and Cameroon, which upon completion we now expect will more than double our corporate free cashflow. We established a Renewable Energy Division which, post period, has signed agreements for up to 750 megawatts (MW)of large scale greenfield solar and wind projects. We successfully renewed and amalgamated our Niger PSC areas, paving the way for the progression of our intended 35 MMstb R3 East development and a return to exploration activity in the licence areas. Our performance against key industry sustainability metrics relating to health, safety and environment (HSE) performance, carbon intensity, senior management gender diversity and local employee ratios remain industry leading.
“Looking forward to the rest of 2022, I am confident in where we are as a business. We expect to deliver on our financial guidance. We expect to complete our entry to Chad and Cameroon during Q3 2022 and to likely announce further hydrocarbon acquisitions. We expect to further grow our Renewable Energy Division, with several new large-scale greenfield opportunities under review and negotiation. We expect to finalise the refinancing of our Nigerian debt and to announce the development and exploration plans for our assets in Niger.
“Most of all we will maintain our focus around the delivery of Projects that Matter in Africa. I would like to express my gratitude to all of those who contributed to our success in 2021 – my incredibly dedicated and passionate colleagues, our host governments, communities, local authorities and regulators, our shareholders and lenders, and our customers, suppliers and partners. Thank you all.”
