REG - Savannah Energy Plc - Financial and Operational Update

Savannah EnergyAnnouncement

20/12/2022 07:00

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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 (MMscfpd)  Uquo Condensate (Kbopd)  Stubb Creek Oil (Kbopd)  Total (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 (http://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

 finnCap Ltd (Joint                                                                +44 (0) 20 7220 0500
 Broker)

 Christopher Raggett

 Tim Redfern

 Panmure Gordon (UK) Ltd (Joint                                                    +44 (0) 20 7886 2500
 Broker)

 John Prior

 Hugo Rich

 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 ("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 (http://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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