TIDMSAVE
RNS Number : 3048Z
Savannah Energy Plc
24 January 2022
24 January 2022
Savannah Energy PLC
("Savannah" or "the Company")
FY 2021 Trading Update
Savannah Energy PLC, the British independent energy company
focused around the delivery of Projects that Matter in Africa, is
pleased to announce a trading update for the full year 2021.
Andrew Knott, CEO of Savannah Energy, said:
"I am extremely pleased to be able to announce a strong set of
initial results for 2021. We have exceeded our guidance set out at
the beginning of 2021, with our Nigerian assets continuing to
perform well throughout the period. In addition, our financial
performance in the year was very strong and operationally we were
able to announce new gas sales contracts in Nigeria, as well as
commencing first gas sales under the FIPL Afam contract. Since the
announcement of our acquisition of the Nigerian assets we have
clearly demonstrated significant underlying asset value creation:
for example, 2017 - 2021 Total Revenues(1) have increased by 65%
and Cash Collections by 92%.
Looking forward we will continue to seek to execute our
"Projects that Matter" strategy as we continue to review
opportunities in the renewable energy space and further upstream
and midstream asset acquisitions, deliver further operational and
financial progress in Nigeria and Niger and close out our planned
acquisitions in Chad and Cameroon. We look forward to updating our
stakeholders as to the progress we make."
FY 2021 Unaudited Financial Highlights
-- FY 2021 Total Revenues(1) of US$230.5m (up 7% on FY 2020 on a
like-for-like basis after adjusting 2020 Total Revenues of
US$235.9m for an advance payment of US$20m from Lafarge Africa
which was received on entering a revised Gas Sales Agreement). This
is ahead of the Company's previously issued FY 2021 guidance of
'Total Revenues of greater than US$205.0m';
-- Group cash balance of US$154.3m(2) (up 46% versus FY 2020
year-end cash balance of US$106.0m) and net debt of US$370.0m(3)
(down 9% versus FY 2020 year-end net debt of US$408.7m) as at 31
December 2021;
-- Total cash collections from the Company's Nigerian assets
rose 11% year-on-year to US$208.2m (FY2020 cash collections of
US$187.4m); and
-- The Company is updating its guidance on the remaining items to report for FY 2021:
o Operating expenses plus administrative expenses (4) are at or
below the lower end of the guidance range of US$55.0m - US$65.0m,
driven by the ongoing control of the cost base;
o Group Depreciation, Depletion and Amortisation of US$20m fixed
for infrastructure assets plus US$2.3/boe (amended from US$19m
fixed for infrastructure assets plus US$2.6/boe), an overall
reduction due to the 27% reserves' increase in Nigeria as announced
in the publication of the updated Nigeria Competent Persons Report
on 23 November 2021; and
o FY 2021 Capital Expenditure for the year is significantly
below the guidance of up to US$65.0m, following the successful
drilling of the Uquo 11 gas development well and ongoing
compression works which are now scheduled to complete in 2022.
FY 2021 Nigeria Operational Highlights
-- FY 2021 average gross daily production was 22.3 Kboepd, a 14%
increase from the average gross daily production of 19.5 Kboepd in
FY 2020.
-- Of the FY 2021 total average gross daily production of 22.3
Kboepd, 88.1% was gas, including a 15% increase in production from
the Uquo gas field compared to 2020, from 103 MMscfpd (17.1 Kboepd)
to 118 MMscfpd (19.7 Kboepd).
Nigeria Average Gross Daily Production
Uquo Gas Uquo Condensate Stubb Creek Total
(MMscfpd) (Kbopd) Oil (Kbopd) (Kboepd)
------------- ----------
1 January-31 December
2021 118 0.1 2.5 22.3
----------- ------------- ----------
% of total production 88.1% 0.5% 11.4% 100%
----------- ---------------- ------------- ----------
1 January-31 December
202 0 103 0.1 2.3 19.5
----------- ---------------- ------------- ----------
% of total production 87.7% 0.6% 11.7% 100%
----------- ---------------- ------------- ----------
% Increase 15% -3% 11% 14%
----------- ---------------- ------------- ----------
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.
Niger
The amalgamation of the R1/R2 and R3/R4 Production Sharing
Contract ("PSC") areas into the new R1234 PSC has been approved.
The first stage of the R3 East development project is to
potentially commence in 2022
New Renewable Energy Division
Opportunities exist throughout Africa in the renewable energy
sphere and Savannah has recently established a new Renewable Energy
division to pursue such projects. Savannah believes that its proven
hydrocarbon asset operational management skills are directly
transferrable to the renewable energy space, which in Africa
represents a potentially vast target market of over 310GW by 2030.
Savannah expects to update on this potentially significant
investment opportunity in due course.
ESG Reporting Update
Savannah continues to progress plans to harmonise and enhance
its approach to sustainability reporting across the enlarged Group.
W e look forward to providing further updates later this year.
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$154.3m, US$106.9m is set aside for
debt service, of which US$75.5m is for interest, and US$1.6m
relates to monies held in escrow accounts for stamp duty relating
to loan security packages
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. 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
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, Interim 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
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
About Savannah Energy:
Savannah Energy PLC is an AIM listed British independent energy
company focused around the delivery of Projects that Matter in
Africa. In Nigeria, the Company has controlling interests in the
cash flow generative Uquo and Stubb Creek oil and gas fields, and
the Accugas midstream business in South East Nigeria, which
provides gas enabling over 10% of Nigeria's thermal power
generation. In Niger, the Company has licence interests covering
approximately 50% of the highly oil prolific Agadem Rift Basin of
South East Niger, where the Company has made five oil discoveries
and seismically identified a large exploration prospect inventory
consisting of 146 exploration targets to be considered for
potential future drilling activity. The Company has announced that
it is in the process of potentially acquiring a portfolio of
upstream and midstream assets in Chad and Cameroon.
Further information on Savannah Energy PLC can be found on the
Company's website: www.savannah-energy.com .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUORURUNUAUUR
(END) Dow Jones Newswires
January 24, 2022 02:00 ET (07:00 GMT)
Savannah Petroleum (LSE:SAVP)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Savannah Petroleum (LSE:SAVP)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
