REG - Savannah Energy Plc - FY 2024 Annual Results and Notice of AGM
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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 (http://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 Nigeria(1); (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 processes(2);
(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 Niger(3); (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%
CAGR(4)), 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 Income(6) of US$393.8 million (FY 2023: US$289.8
million), comprising Total Revenues(7) of US$258.9 million (FY 2023: US$260.9
million) and Other operating income(8) 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 EBITDA(9) of US$181.2 million broadly in line
with prior year (FY 2023 of US$184.1 million) and Adjusted EBITDA(9) 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 Revenues(7) of US$258.9 million (6% ahead of guidance of 'greater
than US$245 million');
o Operating expenses plus administrative expenses(10) 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 Acquisition(11); 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 CO(2)e/boe
(2023: 10.7 kg CO(2)e/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 Contributions(12) 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 Revenues(6) 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$'000
Cash flows from operating activities
Net cash generated from operating activities 14 116,727 33,223
Cash flows from investing activities
Interest received 492 1,716
Payments for property, plant and equipment (13,412) (10,267)
Exploration and evaluation payments (9,737) (2,683)
Loans and advances - receipts 2,239 2,195
Proceeds from disposal 2 44,900
Loans and advances - payments (10,378) (5,012)
Lessor receipts 272 538
Cash from debt service accounts 40,540 77,934
Return of Deposit related to proposed acquisition 10,000 -
Net cash from investing activities 20,018 109,321
Cash flows from financing activities
Finance costs (175,727) (36,509)
Proceeds from issues of equity shares, net of issue costs - 2,011
Borrowing proceeds 213,375 2,850
Borrowing repayments (148,721) (84,213)
Lease payments (2,074) (939)
Net cash used in financing activities (113,147) (116,800)
Net increase in cash and cash equivalents 23,598 25,744
Effect of exchange rate changes on cash and cash equivalents (45,410) (81,757)
Cash and cash equivalents at beginning of year 48,134 104,147
Cash and cash equivalents at end of year 11 26,322 48,134
Amounts held for debt service at end of year 11 6,263 58,807
Cash at bank at end of year as per statement of financial position 11 32,585 106,941
Unaudited consolidated statement of changes in equity
for the year ended 31 December 2024
Share Share Other Share-based Retained Equity Non- Total
capital premium Treasury reserves payment earnings attributable controlling equity
shares reserve to the interest
owners of
the
Company
US$'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 2023
Unaudited 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 2023
Unaudited 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 Audited
US$'000 US$'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 2023
Unaudited 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 2023
Unaudited 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 2023
Unaudited 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 2023
Unaudited 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 2023
Unaudited 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 2023
Unaudited 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 2023
Unaudited 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 2023
Unaudited 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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