FY 2024 Annual Results and Notice of AGM

Savannah Energy

06/06/2025 07:00

RNS Number : 7099L

Savannah Energy Plc

06 June 2025

 

6 June 2025

Savannah Energy PLC

("Savannah" or "the Company"")

 

FY 2024 Annual Results and Notice of AGM

Nigeria Reserves Upgrade

Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, is pleased to announce its unaudited results for the year ended 31 December 2024. The Notice of the Annual General Meeting ("AGM") is available to download from the Company's website (www.savannah-energy.com) and has been posted to those shareholders who have elected to receive postal copies.

Andrew Knott, CEO of Savannah Energy, said:

"I am pleased to announce our FY 2024 results today, in line with our trading statement released in January 2025, and to announce a 21% increase in 2P Reserves at our flagship Uquo field in Nigeria, bringing the total Reserves increase on the field since acquisition to 81%. This follows our announcement of a 29% increase in 2P Reserves on the Stubb Creek field in May 2025.

 

2025 continues to be an exciting year for the business and we continue to work towards "ticking-off" the delivery of the nine focus area projects that we outlined at the beginning of the year, being: (1) securing a further increase in our rate of cash collections in Nigeria1; (2) completion of the refinancing of our principal Nigerian debt facilities; (3) completion of the planned acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the "SIPEC Acquisition") which was achieved during Q1 2025; (4) commencement of the Stubb Creek expansion project; (5) the advancement of our Chad/Cameroon arbitration processes2; (6) the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well; (7) the potential advancement of our R3 East development in Niger3; (8) the refinement of our power sector business model; and (9) the delivery of further transformational acquisitions. I would also highlight that we anticipate achieving a strong increase in cash collections in 2025 (even when set against our long-term 13% CAGR4), with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed."

 

FY 2024 Highlights

·      Average gross daily production was 23.1 Kboepd, broadly in line with the prior year (FY 2023: 23.6 Kboepd), of which 88% was gas (FY 2023: 91%)5;  

·      FY 2024 Total Income6 of US$393.8 million (FY 2023: US$289.8 million), comprising Total Revenues7 of US$258.9 million (FY 2023: US$260.9 million) and Other operating income8 of US$134.9 million (FY 2023: US$28.9 million);

·      FY 2024 record cash collections of US$248.5 million (+21% on FY 2023 cash collections of US$206 million). As at 31 December 2024, cash balances were US$32.6 million (31 December 2023: US$107.0 million) and net debt stood at US$636.9 million (31 December 2023: US$473.7 million). Gross debt as at 31 December 2024 was US$669.5 million, of which US$630.6 million (94%) was non-recourse to PLC;

·      FY 2024 Adjusted EBITDA9 of US$181.2 million broadly in line with prior year (FY 2023 of US$184.1 million) and Adjusted EBITDA9 margin maintained at 70% (FY 2023: 71%);

·      Total Group assets of US$1.6 billion as at 31 December 2024 (2023: US$1.5 billion);

·      Financial guidance for the year achieved or exceeded:

o  Total Revenues7 of US$258.9 million (6% ahead of guidance of 'greater than US$245 million');

o  Operating expenses plus administrative expenses10 of US$71.0 million (5% below guidance of 'up to US$75.0 million'); and

o  Capital expenditure of US$23.1 million lower than guidance of 'up to US$50 million' due to the phasing of spend;

·      Three gas contracts with customers agreed and extended in FY 2024 for a total of up to 105 MMscfpd (17.5 Kboepd);

·      Average realised sales price of US$4.68/Mscfe (+4% increase on the prior year average realised price of US$4.51/Mscfe);

·      NGN340 billion term facility signed by Accugas in January 2024 with a consortium of five Nigerian banks (the "Transitional Facility"). As at 31 December 2024, NGN 332 billion of the Transitional Facility had been drawn down, with the resulting funds converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million;

·      US$60 million debt facility signed in October 2024 with The Standard Bank of South Africa Limited and Stanbic IBTC Bank Limited to fund the SIPEC Acquisition11; and

·      Uquo Marginal Field and the Stubb Creek Marginal Field were converted to new 20-year Petroleum Mining Leases, both effective 1 December 2023, in accordance with the Republic of Nigeria's Petroleum Industry Act 2021.

Updated Competent Persons Reports

As previously announced on 19 May 2025, the Company appointed McDaniel & Associates Consultants Ltd. ("McDaniel") to prepare updated Competent Persons Reports ("CPRs") for the oil and gas assets of the Group. McDaniel have completed their assessment (prepared in accordance with the 2018 Petroleum Resource Management System) of the Reserves and Resources for the Stubb Creek and Uquo fields. The results from this CPR are set out in the tables below, along with comparisons vs. the Reserves and 2P + 2C Resources presented in the Company's March 2024 Nigeria CPR as adjusted for production since publication.

Summary Comparison of Nigeria Gross Reserves

Uquo Field Summary of Gross Gas Reserves (Bscf)
1P
2P
3P
CPR, March 2024*
233.5
400.5
493.6
McDaniel, March 2025
320.2
484.9
544.8
Changes (%)
37%
21%
10%

*Prepared by CGG Services (UK) Ltd

 

Stubb Creek Field Summary of Gross Oil Reserves (MMstb)
1P
2P
3P
CPR, March 2024*
3.3
10.7
20.4
McDaniel, March 2025
9.7
13.8
18.1
Changes (%)
194%
29%
-11%

* Prepared by CGG Services (UK) Ltd

 

 

Nigeria Gross 2P Reserves and 2C Resources
CGG, 2024*
McDaniel, 2025
Changes (%)
Uquo 2P Gas
Bscf
400.5
484.9
21%
Uquo 2P Condensate
MMstb
0.6
0.7
21%
Uquo 2C Gas
Bscf
82.8
55.1
-33%
Stubb Creek 2P Oil
MMstb
10.7
13.8
29%
Stubb Creek 2C Gas
Bscf
515.3
513.1
0%
Nigeria 2P+2C
MMboe
177.7
190.0
7%

*Prepared by CGG Services (UK) Ltd

 

Summary of Nigeria Gross Reserves and Contingent Resources (McDaniel, 2025)

Reserves below are as at 31 March 2025.

Gross Reserves
1P
2P
3P
Stubb Creek Oil (MMstb)
9.7
13.8
18.1
Uquo Gas (Bscf)
320.2
484.9
544.8
Uquo Condensate (MMstb)
0.4
0.7
0.8
Gross Contingent Resources
1C
2C
3C
Stubb Creek Gas (Bscf)
429.5
513.1
603.7
Uquo Gas (Bscf)
46.2
55.1
64.6
Unrisked Gross Prospective Resources
1U
2U
3U
Risk Factor
Uquo Gas (Bscf)
174.6
390.4
738.7
50%

 

2024 Sustainability Highlights

·      Publication today of our 2024 Sustainability Review and 2024 disclosure reports in accordance with the Task Force on Climate-Related Financial Disclosures ("TCFD") and the Sustainability Accounting Standards Board ("SASB") standards;

·      Strong safety record maintained during 2024 with a zero Lost Time Injury rate and Total Recordable Incident rate;

·      2024 scope 1 carbon intensity ratio fell 47% to 5.7 kg CO2e/boe (2023: 10.7 kg CO2e/boe), driven primarily by an absence of pipeline maintenance and by initiatives to reduce emissions at source (such as flare reduction) at the Uquo Central Processing Facility;

·      Total Contributions12 to our host nations increased 22% year-on-year to US$63.4 million (2023: US$52.0 million); and

·      Training hours per employee increased 32% year-on-year to 75 hours per employee with the increase largely due to a three-fold increase in health, safety and environment training hours.

Post-year End Update

·      On 4 March 2025, we announced the completion of an equity issuance raising, in aggregate, gross proceeds of approximately £30.6 million and the signing of a US$200 million acquisition debt facility providing access to potential funding for future hydrocarbon asset acquisitions (currently undrawn);

·      On 10 March 2025, we announced the completion of the SIPEC Acquisition and have commenced work on an up to 18-month expansion programme, anticipated to increase gross production to approximately 4.7 Kbopd;

·      The US$45 million compression project at the Uquo Central Processing Facility is almost complete, with one compressor online and the second to be commissioned before the end of this month. This project, which will be delivered under budget, will allow us to maximise the production from our existing and future gas wells;

·      The procurement process of long lead equipment is progressing in Nigeria in preparation for a potential two-well drilling campaign on the Uquo Field commencing in Q4 2025. Well site and flowline surveys have been completed for the Uquo NE development well ("Uquo NE"). This well is forecast to provide gas volumes of up to 80 MMscfpd. An additional exploration well in the Uquo Field ("Uquo South") is also currently under consideration, which may be drilled back-to-back with the Uquo NE well. Uquo South is targeting an Unrisked Gross gas initially in place of 131 Bscf of incremental gas resources on the Uquo licence area as audited by McDaniel;

·      We are continuing to seek to progress the 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, subject to satisfactory stakeholder agreements being entered into.

·      We continue to progress our existing portfolio of up to 696 MW of wind, solar and hydroelectric projects, with our principal focus being on the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon;

·      We are in the process of refining our Power Division business model, the remit of which has now been expanded to include potential thermal as well as potential renewable energy projects;

·      Cash collections YTD to 30 April 2025 were US$135.3 million (4 months to 30 April 2024: US$132.2 million). Delivering an increase in our rate of cash collections in Nigeria remains a key focus area in 2025. As at 30 April 2025 cash balances were US$77.2 million and net debt stood at US$601.6 million; and

·      Final documentation has been agreed with the lenders in respect of an increase in the Transitional Facility from NGN340 billion to up to NGN773 billion. It is expected that the agreements will be signed this month, and this upsized facility will be utilised to enable the remaining outstanding balance of the Accugas US$ Facility to be repaid. It is currently expected that this will be completed in H2 2025 and, once completed, this will align Accugas' primary debt facility with the currency in which gas revenues are received.

2024 Audited Annual Report & Accounts and AGM

The FY 2024 audit remains ongoing - the process is significantly advanced and, once concluded, Savannah will publish its 2024 audited annual report and accounts. The Company is currently running rigorous and thorough audit tender processes for both the Group and its Nigerian subsidiaries.  The current expectation is that a 'Big 4' firm will be appointed for the Nigerian subsidiaries working alongside an experienced mid-tier firm in the UK for the Company and Group.  BDO LLP, the current auditor, has notified the Company of their intention to resign as auditor shortly after completion of the 2024 audit. 

The AGM will be held at 9.00 a.m. (BST) on Monday, 30 June 2025 at 40 Bank Street, London, E14 5NR. Details on how to submit your proxy vote are set out in the section of the Notice of AGM headed "Voting Arrangements - Action to be taken". A separate General Meeting will be called to approve, inter alia, the 2024 Audited Annual Report.

 

 

For further information, please refer to the Company's website www.savannah-energy.com or contact:

Savannah Energy                                                                    +44 (0) 20 3817 9844

Andrew Knott, CEO

Nick Beattie, CFO

Sally Marshak, Head of IR & Communications

 

Strand Hanson (Nominated Adviser)                         +44 (0) 20 7409 3494

James Spinney

Ritchie Balmer

Rob Patrick

 

Cavendish Capital Markets Ltd (Joint Broker)                      +44 (0) 20 7220 0500

Derrick Lee

Tim Redfern

 

Panmure Liberum Limited (Joint Broker)                              +44 (0) 20 3100 2000

Scott Mathieson

James Sinclair-Ford

 

Camarco                                                                                  +44 (0) 20 3757 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, as amended ("MAR").

Dr Christophe Ribeiro, Savannah's VP Technical, has reviewed and approved the release of this Reserves and Resources update in relation to Savannah's oil and gas assets in this regulatory announcement in his capacity as a qualified person under the AIM Rules. Dr Ribeiro is a qualified petroleum engineer with over 20 years' experience in the oil and gas industry. He holds an MSc in Geophysics from the Institut de Physique du Globe de Paris and an MSc in Petroleum Engineering and a PhD in Reservoir Geophysics from Heriot-Watt University. Dr Ribeiro is a member of the European Association of Geoscientists and Engineers (EAGE) and Society of Petroleum Engineers (SPE).

About Savannah Energy: 

Savannah Energy PLC is a British independent energy company focused around the delivery of Projects that Matter in Africa.

 

Footnotes

1. Internal management estimates assume an increase in the rate of cash collections in relation to historical receivables, an average oil price of US$65.88 per barrel for 2025 and US$67.52 for 2026, completion of the SIPEC Acquisition and the receipt of legacy payments in Nigeria.

2. As previously disclosed in Savannah's 2023 Annual Report, our wholly owned subsidiary, Savannah Chad Inc ("SCI"), commenced arbitral proceedings in 2023 against the Government of the Republic of Chad in response to the March 2023 nationalisation of SCI's rights in the Doba fields in Chad, and other breaches of SCI's rights. Another wholly owned subsidiary, Savannah Midstream Investment Limited ("SMIL"), commenced arbitral proceedings in 2023 in relation to the nationalisation of its investment in Tchad Oil Transportation Company, the Chadian company which owns and operates the section of the Chad-Cameroon pipeline located in Chad. SMIL has also commenced arbitral and other legal proceedings for breaches of SMIL's rights in relation to Cameroon Oil Transportation Company ("COTCo"), the Cameroon company which owns and operates the section of the Chad-Cameroon pipeline located in Cameroon, against the Government of the Republic of Chad and its instrumentalities. We expect these arbitral proceedings to be concluded no later than the first half of 2026.

3. Subject to satisfactory stakeholder agreements being entered into.

4. 2017 -2024 cash collections CAGR.

5. Note that gas production levels are largely driven by customer nomination levels, while cash collections are largely driven by contractual maintenance adjusted take-or-pay provisions of 117 MMscfpd in aggregate.

6. Total Income is calculated as Total Revenues6 plus Other operating income.

7. 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 as opposed to Revenue recognised in the Condensed Consolidated Statement of Comprehensive Income.

8. Other operating income primarily relates to the re-billing of foreign exchange losses incurred through the conversion of Naira paid invoices into US dollars.

9. Adjusted EBITDA is calculated as profit or loss (excluding Other operating income), before finance costs, investment revenue, foreign exchange gains or losses, expected credit loss and other related adjustments, fair value adjustments, gain on acquisition, share-based payments, taxes, transaction costs, depreciation, depletion and amortisation and adjusted to include deferred revenue and other invoiced amounts. Management believes that the alternative performance measure of Adjusted EBITDA more accurately reflects the cash-generating capacity of the business.

10. Group operating expenses plus administrative expenses are defined as total cost of sales, administrative and other operating expenses, excluding gas purchases, royalties, depletion, depreciation and amortisation and transaction costs.

11. On 10 March 2025, we announced the completion of the acquisition of SIPEC, whose principal asset is a 49% non-operated interest in the Stubb Creek Field, where our Universal Energy Resources Limited affiliate is the 51% owner and operator.

12. Total Contributions to Nigeria and Niger defined as payments to governments, employee salaries and payments to local suppliers and contractors.

Unaudited consolidated statement of comprehensive income

for the year ended 31 December 2024

2024 Unaudited
2023
Audited
Note
US$'000
US$'000
Continuing operations
Revenue
3a
227,035
224,175
Cost of sales
4
(75,024)
(77,818)
Gross profit
152,011
146,357
Other operating income
3b
135,186
28,877
Administrative and other operating expenses
(40,894)
(42,129)
Transaction and other related expenses
(15,263)
(13,248)
Expected credit loss and other related adjustments
(44,615)
16,703
Operating profit
186,425
136,560
Share of profit from associates
-
4,400
Finance income
6,930
3,216
Finance costs
5
(101,051)
(102,655)
Fair value through the profit or loss and other adjustments
16,091
(5,706)
Foreign exchange loss
6
(78,121)
(104,713)
Profit/(loss) before tax
30,274
(68,898)
Current tax expense
7
(24,778)
(5,822)
Deferred tax credit/(expense)
7
44,342
(1,311)
Total tax credit/(expense)
7
19,564
(7,133)
Profit/(loss) after tax
49,838
(76,031)
Discontinued operations
Profit after tax from discontinued operations
-
89,040
Total profit
49,838
13,009
Other comprehensive income
Items not reclassified to profit or loss:
Actuarial loss relating to post-employment benefits
(235)
(128)
Tax relating to items not reclassified to profit or loss
76
48
Other comprehensive loss
(159)
(80)
Total comprehensive income from continuing and discontinued operations
49,679
12,929
Total profit/(loss) after tax attributable to:
Owners of the Company
31,001
14,855
Non-controlling interests
18,837
(1,846)
49,838
13,009
Total comprehensive income/(loss) attributable to:
Owners of the Company
30,874
14,786
Non-controlling interests
18,805
(1,857)
49,679
12,929
Earnings/(loss) per share from continuing operations
Basic (US₵)
8
2.49
(5.98)
Diluted (US₵)
8
2.39
(5.98)
Earnings per share from continuing and discontinued operations
Basic (US₵)
2.49
1.20
Diluted (US₵)
2.39
1.14

 

Unaudited consolidated statement of financial position

as at 31 December 2024

 

2024 Unaudited
2023
Audited
Note
US$'000
US$'000
Assets
Non-current assets
Property, plant and equipment
9
457,453
476,144
Intangible assets
176,427
174,707
Financial investment
139,459
139,459
Deferred tax assets
271,737
227,318
Right-of-use assets
3,418
2,648
Restricted cash
29
29
Other non-current receivables
17,334
9,879
Total non-current assets
1,065,857
1,030,184
Current assets
Inventory
5,078
7,143
Trade and other receivables
10
470,047
370,857
Cash at bank
11
32,585
106,941
Total current assets
507,710
484,941
Total assets
1,573,567
1,515,125
Equity and liabilities
Capital and reserves
Share capital
1,836
1,836
Share premium
126,824
126,824
Treasury shares
(97)
(136)
Other reserves
531
531
Share-based payment reserve
17,261
14,717
Retained earnings
141,600
110,726
Equity attributable to owners of the Company
287,955
254,498
Non-controlling interests
28,064
9,259
Total equity
316,019
263,757
Non-current liabilities
Other payables
12
1,671
2,030
Borrowings
13
370,229
213,469
Lease liabilities
2,213
1,998
Provisions
49,384
49,256
Contract liabilities
382,640
346,490
Total non-current liabilities
806,137
613,243
Current liabilities
Trade and other payables
12
80,147
108,000
Borrowings
13
299,299
367,199
Interest payable
27,248
136,090
Tax liabilities
24,276
6,384
Lease liabilities
1,777
2,798
Contract liabilities
18,664
17,654
Total current liabilities
451,411
638,125
Total liabilities
1,257,548
1,251,368
Total equity and liabilities
1,573,567
1,515,125

 

 

Unaudited consolidated statement of cash flows

for the year ended 31 December 2024

 

2024 Unaudited
2023
Audited
Note
US$'000
US$'000
Cash flows from operating activities
Net cash generated from operating activities
14
116,727
33,223
Cash flows from investing activities
Interest received
492
1,716
Payments for property, plant and equipment
(13,412)
(10,267)
Exploration and evaluation payments
(9,737)
(2,683)
Loans and advances - receipts
2,239
2,195
Proceeds from disposal
2
44,900
Loans and advances - payments
(10,378)
(5,012)
Lessor receipts
272
538
Cash from debt service accounts
40,540
77,934
Return of Deposit related to proposed acquisition
10,000
-
Net cash from investing activities
20,018
109,321
Cash flows from financing activities
Finance costs
(175,727)
(36,509)
Proceeds from issues of equity shares, net of issue costs
-
2,011
Borrowing proceeds
213,375
2,850
Borrowing repayments
(148,721)
(84,213)
Lease payments
(2,074)
(939)
Net cash used in financing activities
(113,147)
(116,800)
Net increase in cash and cash equivalents
23,598
25,744
Effect of exchange rate changes on cash and cash equivalents
(45,410)
(81,757)
Cash and cash equivalents at beginning of year
48,134
104,147
Cash and cash equivalents at end of year
11
26,322
48,134
Amounts held for debt service at end of year
11
6,263
58,807
Cash at bank at end of year as per statement of financial position
11
32,585
106,941

 

 

Unaudited consolidated statement of changes in equity

for the year ended 31 December 2024

 

Share
capital
Share
premium
Treasury
shares
Other
reserves
Share-based
payment
reserve
Retained
earnings
Equity
attributable
to the
owners of
the
Company
Non-
controlling
interest
Total
equity
US$'000
US$'000
US$'000
US$'000
US$'000
US$'000
US$'000
US$'000
US$'000
Balance at 1 January 2023 (audited)
1,828
124,819
(136)
531
9,974
95,940
232,956
11,116
244,072
Profit/(loss) after tax
-
-
-
-
-
14,855
14,855
(1,846)
13,009
Other comprehensive loss
-
-
-
-
-
(69)
(69)
(11)
(80)
Total comprehensive income/(loss)
-
-
-
-
-
14,786
14,786
(1,857)
12,929
Transactions with shareholders:
Shares issued
8
2,005
-
-
-
-
2,013
-
2,013
Equity-settled share-based payments
-
-
-
-
4,743
-
4,743
-
4,743
Balance at 31 December 2023 (audited)
1,836
126,824
(136)
531
14,717
110,726
254,498
9,259
263,757
Profit after tax
-
-
-
-
-
31,001
31,001
18,837
49,838
Other comprehensive loss
-
-
-
-
-
(127)
(127)
(32)
(159)
Total comprehensive income
-
-
-
-
-
30,874
30,874
18,805
49,679
Treasury share option exercise
-
-
39
-
-
-
39
-
39
Equity-settled share-based payments
-
-
-
-
2,544
-
2,544
-
2,544
Balance at 31 December 2024 (unaudited)
1,836
126,824
(97)
531
17,261
141,600
287,955
28,064
316,019

 

Notes to the unaudited financial statements

for the year ended 31 December 2024

 

1. Corporate information

Savannah was incorporated in the United Kingdom on 3 July 2014. Savannah's principal activity is the exploration, development and production of natural gas and crude oil and development of other energy-related projects in Africa. The Company is domiciled in England for tax purposes and is a public company, and its shares were admitted on the Alternative Investment Market (AIM) of the London Stock Exchange on 1 August 2014.The Company's registered address is 40 Bank Street, London E14 5NR.

2. Basis of preparation

These unaudited consolidated financial statements of the Company and its subsidiaries ("the Group") have been prepared in accordance with UK-adopted IAS.  The unaudited consolidated financial statements have been prepared under the historical cost convention except for financial instruments measured at fair value through profit or loss, employee benefits and derivative financial instruments which have been measured at fair value. The unaudited consolidated financial statements of the Group incorporate the results for the year to 31 December 2024 and have been prepared on a going concern basis.

The financial information contained in this report for the year ended 31 December 2024 does not constitute full statutory accounts as defined in sections 435 (1) and (2) of the Companies Act 2006. The statutory accounts for the year ended 31 December 2024 will be finalised based on the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies in due course. The statutory accounts are subject to completion of the audit and may change before the approval of the Annual Report.

Statutory accounts for the year ended 31 December 2023 have been delivered to the Registrar of Companies. The auditor's report on those accounts was qualified with respect to the Discontinued operations of the Chad Assets and the Company's Financial investment in COTCo, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. Statutory accounts for the year ended 31 December 2024 will be delivered in due course.

The accounting policies applied are consistent with those adopted and disclosed in the Group's audited consolidated financial statements for the year ended 31 December 2023. There have been several amendments to accounting standards and new interpretations issued by the International Accounting Standards Board which were applicable from 1 January 2024, and have certain impacts on the accounting policies, methods of computation or presentation applied by the Group. Further details on new International Financial Reporting Standards adopted will be disclosed in the Annual Report.

For the years ended 31 December 2024 and 2023 the results of the Group have been analysed between continuing operations and discontinued operations. The discontinued operations relate to the Group's Chad assets that were acquired in 2022 but discontinued during 2023. No results have been recorded within discontinued operations for the year ended 31 December 2024.

 

3. Revenue

(a) Revenue from contracts with customers

2024
Unaudited
2023
Audited
Year ended 31 December - continuing operations
US$'000
US$'000
Gas sales
199,841
202,744
Oil, condensate and processing sales
27,194
21,431
Total revenue from contracts with customers
227,035
224,175

 

Gas sales represent gas deliveries made to the Group's customers under gas sale agreements. The Group sells oil and condensate at prevailing market prices. Revenue amounting to US$215.3 million (2023: US$166.9 million) related to three (2023: two) of the Group's customers which each contribute more than 10% of revenue, US$138.2 million, US$50.7 million and US$26.4 million respectively (2023: US$121.7 million and US$45.2 million).

(b) Other operating income

Other operating income of US$134.9 million (2023: US$28.9 million) relates to the invoicing of foreign exchange losses incurred on certain customer trade receivables that are settled in a currency other than the invoiced currency and are permitted to be invoiced to the relevant customer. All the other operating income was invoiced to the principal customer.

Other operating income also includes income from grants amounting to US$0.3 million (2023: US$nil) with respect to renewable development projects.

 

4. Cost of sales

2024 Unaudited
2023
Audited
Year ended 31 December - continuing operations
US$'000
US$'000
Depletion and depreciation - oil and gas, and infrastructure assets
31,903
34,819
Facility operation and maintenance costs
37,986
37,909
Royalties
5,135
5,090
75,024
77,818

 

5. Finance costs

2024 Unaudited
2023
Audited
Year ended 31 December - continuing operations
US$'000
US$'000
Interest on bank borrowings and loan notes
97,863
83,266
Amortisation of balances measured at amortised cost
5,760
9,725
Unwinding of decommissioning discount
1,759
5,263
Interest expense on lease liabilities
516
259
Bank charges
454
157
Other finance costs
(5,301)
3,985
101,051
102,655

 

6. Foreign exchange loss

2024
Unaudited
2023
Audited
Year ended 31 December - continuing operations
US$'000
US$'000
Realised loss
26,507
36,803
Unrealised loss
51,614
67,910
78,121
104,713

 

Realised foreign translation loss mainly relates to the translation of Naira denominated transactions into US Dollars. Unrealised loss relates to the revaluation of statement of financial position items held in currencies other than US Dollars. During the year ended 31 December 2024, the Nigerian Naira devalued (2023: devalued) against the US Dollar which largely resulted in an unrealised loss on monetary balances held in Naira.

 

7. Taxation

 

The tax credit or expense recognised in the profit or loss statement for the Group is:

2024
2023
Year ended 31 December - continuing operations
Unaudited
US$'000
Audited
US$'000
Current tax expense
Current year
25,893
5,860
Adjustments in respect of prior years
(1,115)
(38)
Current tax expense
24,778
5,822
Deferred tax credit or expense
Origination and reversal of temporary differences
1,835
4,696
Change in tax rates
-
(311)
Write down and reversal of previous write downs of deferred tax assets
(46,698)
-
Recognition of decommissioning deferred tax assets and liabilities
-
(1,095)
Adjustments in respect of prior years
521
(1,979)
Deferred tax (credit)/expense
(44,342)
1,311
Total tax (credit)/expense
(19,564)
7,133

 

8. Earnings per share

Basic earnings per share ("EPS") is calculated by dividing the profit or loss for the year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share is calculated by dividing the profit or loss for year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year, plus the weighted average number of shares that would be issued on the conversion of dilutive potential ordinary shares into ordinary shares.

The weighted average number of shares outstanding excludes treasury shares of 68,964,585 (2023: 68,964,585).

2024
Unaudited
2023
Audited
Year ended 31 December
US$'000
US$'000
Profit/(loss) after tax from continuing operations
Profit/(loss) attributable to owners of the Company
31,001
(74,185)

 

2024
Unaudited
2023
Audited
Year ended 31 December
Number of shares
Number of shares
Basic weighted average number of shares
1,243,229,960
1,241,376,191
Add: employee share options and warrants
56,225,254
60,420,729
Diluted weighted average number of shares
1,299,455,214
1,301,796,920

 

2024
Unaudited
2023
Audited
US ₵
US ₵
Earnings/(loss) per share from continuing operations
Basic
2.49
(5.98)
Diluted
2.39
(5.98)

 

23,450,849 options granted under share option schemes and 101,113,992 warrants issued are not included in the calculation of diluted earnings per share for the year ended 31 December 2024 (2023: 23,853,457 options and 96,115,962 warrants).  The basic weighted average number of shares used in 2023 has been recalculated and has had no impact on the EPS. 

 

9. Property, plant and equipment

Oil and gas
Infrastructure
Other
assets
assets
assets
Total
US$'000
US$'000
US$'000
US$'000
Cost
Balance at 1 January 2023 (audited)
315,174
422,340
5,012
742,526
Additions
296
9,525
456
10,277
Disposals
-
-
(250)
(250)
Decommissioning remeasurement adjustment
(287)
(1,699)
-
(1,986)
Transferred to discontinued operations
(121,558)
-
-
(121,558)
Balance at 31 December 2023 (audited)
193,625
430,166
5,218
629,009
Additions
13
14,368
808
15,189
Disposals
-
-
(743)
(743)
Decommissioning remeasurement adjustment
1,910
(3,228)
-
(1,318)
Balance at 31 December 2024 (unaudited)
195,548
441,306
5,283
642,137
Accumulated depreciation
Balance at 1 January 2023 (audited)
(59,245)
(57,118)
(3,045)
(119,408)
Depletion and depreciation charge
(20,097)
(14,722)
(504)
(35,323)
Disposals
-
-
250
250
Transferred to discontinued operations
1,616
-
-
1,616
Balance at 31 December 2023 (audited)
(77,726)
(71,840)
(3,299)
(152,865)
Depletion and depreciation charge
(18,002)
(13,901)
(570)
(32,473)
Disposals
-
-
654
654
Balance at 31 December 2024 (unaudited)
(95,728)
(85,741)
(3,215)
(184,684)
Net book value
Balance at 1 January 2023 (audited)
255,929
365,222
1,967
623,118
Balance at 31 December 2023 (audited)
115,899
358,326
1,919
476,144
Balance at 31 December 2024 (unaudited)
99,820
355,565
2,068
457,453

 

 

 

10. Trade and other receivables

2024
Unaudited
2023
Audited
As at 31 December
US$'000
US$'000
Trade receivables
538,894
389,911
Receivables from a joint arrangement
4,509
5,388
Other financial assets
12,657
5,829
556,060
401,128
Expected credit loss
(98,102)
(53,487)
457,958
347,641
VAT receivables
1,442
1,100
Loans and advances
2,242
2,093
Prepayments and other receivables
8,405
20,023
470,047
370,857

 

11. Cash at bank

2024
Unaudited
2023
Audited
As at 31 December
US$'000
US$'000
Cash and cash equivalents
26,322
48,134
Amounts held for debt service
6,263
58,807
32,585
106,941

 

Amounts held for debt service represent Naira denominated cash balances which are held by the Group for 2023-2024 debt service which has been separately disclosed from cash and cash equivalents.

 

 

12. Trade and other payables

2024
Unaudited
2023
Audited
As at 31 December
US$'000
US$'000
Trade and other payables
Trade payables
18,584
26,461
Accruals
27,671
29,273
VAT and WHT payable
19,226
16,601
Royalty and levies
5,510
6,815
Employee benefits
17
35
Financial liability
1,350
19,328
Other payables
7,789
9,487
Trade and other payables
80,147
108,000
Other payables - non-current
Employee benefits
1,671
2,030
Other payables - non-current
1,671
2,030
81,818
110,030

 

13. Borrowings

2024
Unaudited
2023
Audited
As at 31 December
US$'000
US$'000
Revolving credit facility
2,327
11,376
Bank loans
426,873
345,849
Senior Secured Notes
88,428
86,626
Other loans
151,900
136,817
669,528
580,668

 

14. Cash flow reconciliation

A reconciliation of profit/(loss) before tax to net cash generated from operating activities is as follows:

2024
Unaudited
2023
Audited
Year ended 31 December
US$'000
US$'000
Profit/(loss) before tax from continuing operations
30,274
(68,898)
Profit before tax from discontinued operations
-
56,826
Adjustments for:
Depreciation
3,800
3,545
Depletion
31,905
34,819
Finance income
(6,930)
(1,501)
Finance costs
100,597
102,655
Discontinued operations finance costs
-
14,937
Fair value through the profit or loss and other adjustments
(16,091)
5,706
Share of profit from associates
-
(4,400)
Other income
392
-
Loss on disposal
153
-
Unrealised foreign exchange loss
51,614
67,910
Share-based payments
2,544
4,743
Expected credit loss and other related adjustments
44,615
(16,703)
Current service cost
270
-
Contingent consideration write off
-
(9,242)
Chad Assets net impairment
-
(19,864)
Operating cash flows before movements in working capital
243,143
170,533
Decrease/(increase) in inventory
2,065
(1,948)
Increase in trade and other receivables
(148,035)
(141,337)
Decrease in trade and other payables
(7,339)
(11,061)
Increase in contract liabilities
31,869
23,510
Income tax paid
(4,795)
(6,474)
Benefits paid
(181)
-
Net cash generated from operating activities
116,727
33,223

 

 

15. Events after the reporting period

 

On 19 March 2024, the Company announced that it had signed a Share Purchase Agreement to acquire SIPEC, the joint venture partner in the Stubb Creek Field and the acquisition completed on 10 March 2025.

On 3 March 2025, the Company announced an equity fundraising to raise, in aggregate, approximately £30.6 million (before expenses). In total 437,112,466 new ordinary shares will be issued - the first tranche of 298,134,852 shares was issued in March 2025 and remainder of the shares are to be issued by no later than 4 September 2025.

A new US$200 million debt facility was signed in March 2025 and is available to support potential future acquisitions of oil and gas assets. It has a tenor of up to five years with quarterly repayments commencing in February 2028. The Facility is secured on the assets of a Savannah subsidiary together with any new assets acquired using funds drawn under the Facility. It is a condition of utilisation of the Facility that Savannah and the lender and/or an affiliate of the lender enter into an off-take contract in respect of the production associated with the assets being acquired. The loan bears interest at SOFR + 7%.

 

 

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FR EAFKSESKSEAA