REG - Savannah Energy Plc - Publication and Posting of the 2024 Annual Report
22/10/2025 16:30
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RNS Number : 4458E Savannah Energy Plc 22 October 2025
22 October 2025
Savannah Energy PLC
("Savannah" or "the Company")
Publication and Posting of the 2024 Annual Report
Further to its announcement on 6 June 2025, the Company advises that its 2024
Annual Report and Accounts (the "Annual Report") have now been published and
are available on the Company's website at www.savannah-energy.com. Printed
copies will be posted to shareholders who have elected to receive them by
post.
There are no changes to any of the financial information previously disclosed
in the Company's 6 June 2025 announcement. We encourage Shareholders to review
the extracts from the Annual Report contained in this announcement, including
the Chief Executive Officer's Review, the Chair's Statement and the Financial
Review.
Following the publication of the Annual Report, and the Company's interim
accounts for the six month period ended 30 June 2025, which is to occur
shortly following this announcement, trading in the Company's ordinary shares
on the AIM market is expected to be restored at 7.30 a.m. on Thursday 23
October 2025.
As announced on 6 June 2025, BDO LLP had previously notified the Company of
its intention to resign as auditor following the completion of the 2024
external audit. The 2024 audit has now been completed, and BDO LLP has
formally resigned as the Company's auditor. The Company is currently
conducting a comprehensive audit tender process covering both the Group and
its Nigerian subsidiaries. This appointment process is expected to conclude in
the fourth quarter of 2025.
Chief Executive Officer's Review
Delivering on our key opportunities in African energy
Dear fellow shareholders,
I would like to welcome you to our 11th Annual Report as a listed company,
marking more than a decade of Savannah delivering Projects that Matter in
Africa. This year's letter follows a similar format to those of recent years.
The first section discusses the global business environment in 2024. The
second section discusses our Company's continued strong financial, operational
and sustainability performance in 2024. The third section discusses key
business priorities for the year ahead. The last section talks about the "how"
and the "why" we see the African energy transition evolving and discusses the
relevance of our hydrocarbon AND renewable energy strategy.
Before turning to the first section, I would like to draw your attention to
two guest authored articles in this year's Annual Report. The first (on page
17) is authored by Hon. Wale Edun, Minister of Finance and Coordinating
Minister of the Economy of Nigeria and discusses his views on "Unlocking
Opportunities Across the Economy" (originally published in Forbes Africa). The
second article (on pages 27 to 33) is authored by Daniel Yergin, Peter Orzag
and Atul Arya, "The Troubled Energy Transition" (originally published in
Foreign Affairs), who make an articulate argument that we are now experiencing
an "energy addition" as opposed to an "energy transition", with their critical
observation that "throughout history, no energy source, including traditional
biomass, has declined globally in absolute terms over an extended period". We
are extremely grateful to our distinguished guest authors for their
contributions.
I would also like to highlight on pages 8 to 15 a discussion of "Why we do
what we do", which focuses on our corporate purpose and the associated core
beliefs which serve to underpin our strategy and business model. I really
believe that this section is essential reading for anyone seeking to
understand our Company.
2024 Global Business Environment
The global economy remained relatively stable in 2024. Although the OECD1, and
Africa2 recorded different GDP growth rates, both showed a similar
year-on-year trend of consistent growth. Oil prices remained broadly flat,
with the Brent crude benchmark declining by a modest 1.2%.3 Global LNG prices
fell by approximately 15% (although they remained elevated by historical
standards).4 Results were burdened by weak refining5,6 and chemicals
margins7,8 in 2024, as supply significantly outpaced demand growth. Developed
economies experienced a notable decline in inflation from an average of 4.8%
in 2023 to an estimated 2.6% in 20242, while inflation across African nations
remained persistently high at 16.6% in 2023 versus 16.1% in 2024.
Against this backdrop, Nigeria saw a significant increase in inflation in 2024
(29% versus 25% in 2023)9 alongside a substantial 40% depreciation of the
Naira against the US$.10 This was largely driven by the transitional impact of
market-oriented government policy changes, including a removal of fuel
subsidies and the switch from a managed to a floating exchange rate regime.11
We believe that these policies, together with the Government's stated
objective to increase oil production (which contributes approximately 65% of
Government revenue and 85% of total exports12) by approximately one-third,13
their intention to impose cost reflective power tariffs, and a likely
privatisation programme of select Government assets, have the potential to
transform the country's economy. Early indications have been encouraging; the
World Bank reported that Nigeria saw its strongest growth in a decade in Q4
2024, with a 4.6% year-on-year expansion, leading to an annual growth rate of
3.4% in 2024, the highest since 2014;14 foreign exchange reforms have helped
stabilise the Naira at around NGN 1,485 (at the time of writing) to the US$15;
and in April and May 2025, Nigeria's credit rating was upgraded to "B" by
Fitch Ratings16, and to "B3" by Moody's respectively. In July 2025, in its
latest Article IV Consultation, the International Monetary Fund ("IMF")
formally praised Nigeria for implementing "major reforms over the past two
years" that have improved macroeconomic stability and resilience.17
In 2024, the seven energy supermajors - BP, Chevron, ConocoPhillips, Eni,
ExxonMobil, Shell and TotalEnergies (the "Supermajors") - reported a combined
profit of US$95.7 billion, representing a 26% year-on-year decline, despite a
6% increase in combined upstream production volumes.18
The corporate performance of the Supermajors was influenced not only by oil
production but also by lower gas prices, weaker refining and petrochemical
margins, and the corporate mix of business lines, including lower carbon.19
There was a marked divergence between the performance of the US majors and
their European counterparts; US companies saw net income fall by 11%,
alongside an 11% increase in production volumes, whereas the European majors
experienced a 43% decline in net income with only a 1% increase in
production.18 This disparity was driven, at least in part, by differing
strategic approaches to the energy transition. US companies have typically:
(1) invested more heavily in hydrocarbons and less in renewables or
lower-carbon divisions than their European peers; and (2) maintained stronger
capital discipline with respect to expected investment returns. At the time of
writing a new consensus appears to have emerged, at least for now, that more
closely aligns with the US approach.20, 21, 22
However, due to the long investment lead times associated with energy
projects, it may take several years before the relative performance
differential is fully resolved.
Savannah's 2024 Performance
Savannah's financial performance in 2024 was ahead of guidance for the year.
We reported Total Revenues(a) of US$258.9 million (versus guidance of "greater
than US$245 million" and 2023: US$260.9 million versus guidance of "greater
than US$235 million"), Operating and administrative expenses(g) of US$71.0
million (versus guidance of "less than US$75 million" and 2023: US$68.8
million) and Adjusted EBITDA(d) of US$181.2 million (2023: US$184.1 million).
Our Adjusted EBITDA(d) margin remained industry leading at 70% when compared
to the Supermajors' average margin of 22.3% in 2024.23
At the Nigerian business unit level, we recorded Adjusted EBITDA(d) of
US$210.4 million, broadly in line with last year (2023: US$213.9 million), and
an Adjusted EBITDA(d) margin of 81%. The US$29.2 million difference between
the Group and our Nigerian business Adjusted EBITDA(d) numbers largely
reflects the central costs of running the business, the investments we are
making in our pre-revenue power business and various transaction costs as we
progress our significant future growth plans.
We demonstrated strong operational performance in 2024. Average gross daily
production was 23.1 Kboepd for FY 2024, broadly in line with the prior year
(FY 2023: 23.6 Kboepd), of which 88% was gas (FY 2023: 91%). We maintained a
97% uptime at our Uquo CPF, with downtime a result of planned maintenance. In
2024, 88% of our revenue stream was derived from fixed price gas sales
agreements with no cyclical exposure to oil or international gas prices. Over
the last seven years (2017 - 2024) our Nigerian business has achieved an
annualised Total Revenues(a) Compound Annual Growth Rate ("CAGR") of 9%. This
Total Revenues(a) growth compares favourably to the long-term trend CAGR of
the wider UK stock market constituents of 3%.24 We currently supply gas to
support both approximately 17% of Nigeria's available thermal power generation
capacity (up from approximately 10% at the time of acquisition), and
approximately 18% of Nigeria's annual cement production.25 We are clearly
performing a critical service to the Nigerian economy.
In 2024 we continued to progress our pipeline of pre-revenue power 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 maintained our strong focus around safe operational delivery in 2024,
recording an exceptional LTIR of zero and a TRIR of zero per 200,000 working
hours. Our performance against key sustainability metrics remained equally
industry-leading. At 5.7 kg CO2e/boe, our carbon emissions were 73% lower than
the industry average of 21.3 kg CO2e/boe26, registering a 47% reduction
year-on-year. Additionally, our senior management female gender diversity was
broadly in line with the prior year at 32%, while our local employee ratios in
our countries of operation were maintained at 99% for Nigeria and 100% for
Niger.
We continued to focus on providing training programmes to support the ongoing
skills and knowledge development of our workforce, with a more than 30%
increase in training hours in 2024 to an average of 75 hours per employee.
This includes an almost three-fold increase in HSE training hours across all
levels of the organisation, in line with our strong commitment to health and
safety. In addition to the "Safe Start", "Finish Strong" and "Eye Injury
Prevention" internal training campaigns rolled out at our Nigerian operational
sites during the year, personnel completed a focused HSE training programme in
2024, using external consultants to cover core topics, such as our life saving
rules, safe systems of work, process safety, fire, first aid and permit to
work procedures.
Nigeria
In March 2024, we signed a sale and purchase agreement to increase our
effective ownership of the Stubb Creek oil and gas field in Nigeria from 51%
to 100%, through the acquisition of our Nigerian affiliate Universal Energy
Resources' joint venture partner, SIPEC. This acquisition, completed post-year
end in March 2025, increased Savannah's Reserves and Resources base by
approximately 47 MMboe from 160 MMboe to 207 MMboe (on a pro-forma basis as at
end of December 2024).27 Following completion, we are now implementing an up
to 18-month expansion programme to increase the processing capacity of the
Stubb Creek facilities. It is anticipated that this will lead to Stubb Creek
gross production increasing from an average of 2.7 Kbopd in 2024 to up to 4.7
Kbopd. Post-year end, Stubb Creek average monthly production was 3.3 Kbopd ,
an increase of approximately 24% compared to the average production for 2024.
In parallel, we are evaluating an alternative, lower capex option that could
deliver a faster production ramp up, with plateau production sustained for a
longer period at a slightly lower rate than under the original expansion
programme.
Post-year end, we announced a 29% increase in Stubb Creek gross 2P oil
Reserves, based on the latest Nigeria CPR prepared by McDaniel as at 31 March
2025, compared to the previous March 2024 Nigeria CPR prepared by CGG. The
increase is due to an improved ultimate field recovery factor, as determined
through the implementation of enhanced field monitoring protocols and advanced
reservoir modelling. The entire acquisition consideration was funded through a
non-recourse debt facility provided by The Standard Bank of South Africa, and
we estimate the acquisition to be over US$150 million accretive to the
Company's NAV10, based on the acquired oil reserves alone. Additionally, the
SIPEC Acquisition also secures significant additional feedstock gas (226 Bscf)
available for sale to our Accugas subsidiary.
Our Uquo gross 2P gas Reserves as at 31 March 2025 increased by 21% in the
latest Nigeria CPR prepared by McDaniel compared to the previous March 2024
Nigeria CPR prepared by CGG. The increase is due to the conversion of one
reservoir from Contingent Resources to Reserves and an increase of Reserves in
one reservoir based on production data and analysis.
Throughout 2024 we continued to progress the Uquo compression project.
Post-year end, we successfully completed this important project, safely and
approximately 10% under the original budget of US$45 million, which is
expected to allow us to maximise the production from our existing and future
gas wells.
The trade receivables balance at year-end 2024 was US$538.9 million (31
December 2023: US$389.9 million) and post-year end has reduced 9% to US$493.3
million. It relates primarily to amounts due under various gas sales
agreements in Nigeria. The power sector in Nigeria continues to face very
challenging liquidity conditions, which have impacted payment timelines across
the value chain. We continue to pursue constructive discussions with our
customers to implement structured payment plans to reduce this receivable
balance.
Niger
In 2024 we continued to seek to progress the 35 MMstb (Gross 2C Resources) R3
East oil development in South East Niger. The Niger-Benin oil export pipeline,
now fully operational, provides a potential route to international markets for
crude oil produced from the R1234 contract area of our subsidiary, Savannah
Energy Niger SA. Post year-end the Company has sought to actively engage with
the Government of Niger around our forward work programme plans in country.
Subject to a satisfactory agreement being reached with the Government, our
subsidiary is considering commencing a four-well testing programme and/or a
return to exploration activity in the R1234 PSC contract area in 2026/27. The
R3 East development plan, itself, has been significantly re-worked since the
last published Niger CPR of December 2021, with a plateau production rate of
around 10 Kbopd now assumed (previously 5 Kbopd). We have updated our internal
management estimates of the potential PV10 value (on an unrisked basis) at an
asset level basis for R3 East to US$184.4million (vs the last CPR asset value
estimate of US$150 million). Assuming a successful well test programme is
conducted, we would look to accelerate plans to commence commercial oil
production from the R3 East Area and intend to incorporate the data acquired
into our field development plan.
Our 250 MW Parc Eolien de la Tarka wind farm project made significant progress
in 2024, with the Minister of Energy confirming that the project is on the
Government's list of priority projects. We are continuing to seek to negotiate
outline terms in relation to the project's proposed power purchase agreement
and continue to work on the project in close collaboration with two leading
development institutions (the IFC, part of the World Bank Group, and the DFC).
Our ESIA scoping report, which found there were no endangered flora or fauna
detected, has been validated by the Niger authorities and consultants are
currently working on the additional studies required to complete the full
ESIA. A framework to identify and compensate impacted landowners has also been
established.
Savannah is also progressing a large-scale solar project in Niger, comprising
two photovoltaic solar power plants, expected to be located within 20 km of
the cities of Maradi and Zinder, in southern Niger. Each plant is expected to
have an installed capacity of up to 100 MW. In March 2024, we presented
preliminary commercial and technical proposals to the Government of Niger. To
be clear the Niger solar projects are of lower priority than Parc Eolien de la
Tarka and Savannah does not expect significant development activity to occur
on these projects prior to financial close being reached on Parc Eolien de la
Tarka.
Cameroon
Substantial progress was made on Savannah's Bini a Warak hybrid hydroelectric
and solar project during 2024. Following the approval of the proposed redesign
given by the Minister of Water and Energy in late 2023, the project now
includes 40 MW of photovoltaic solar, increasing its combined solar and hydro
installed power generation capacity from 75 MW to 95 MW.
Hydropower production will adapt to photovoltaic solar production levels,
enabling a combined stable level of energy generation throughout the day.
Negotiations with the Government of Cameroon are at an advanced stage
regarding a Joint Development Agreement to replace the Memorandum of Agreement
signed in April 2023. This, once signed, will secure the terms under which
Savannah will collaborate with the Government to develop the project. Prior to
financial close, we currently expect to reduce our ownership interest in the
Bini a Warak project by around 50%, so as to introduce additional equity
partners.
The project is expected to generate clean and stable power for Cameroon's
northern region, increasing the region's generation capacity by over 50%.
Financial close is currently anticipated in Q3 2028, with first power from the
solar unit targeted two years thereafter and the hydropower unit commissioned
approximately four years after project sanction.
Arbitral Proceedings
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 TOTCo, 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 COTCo, the Cameroon company which
owns and operates the section of the Chad-Cameroon pipeline located in
Cameroon. We currently expect these arbitral proceedings to be concluded in
the first half of 2026.
SCI and SMIL are claiming in excess of US$775 million (plus interest currently
estimated at in excess of US$170 million and costs) for the nationalisation of
their rights and assets in Chad.29 SMIL has a claim valued at approximately
US$330 million (plus interest which is currently estimated at in excess of
US$60 million plus costs) for breaches of its rights in relation to COTCo.30
Whilst the Government of the Republic of Chad has acknowledged SCI's and
SMIL's right to compensation, no compensation has been paid by the Government
of the Republic of Chad to date. Savannah remains ready and willing to discuss
with the Government of the Republic of Chad an amicable solution to the
disputes. However, in the absence of such discussions, SCI and SMIL intend to
vigorously pursue their rights in the arbitrations.
SCI is involved in further arbitral proceedings in which designates of
Société des Hydrocarbures du Tchad allege breaches by SCI of the Doba fields
joint operating agreement.31 SCI is defending the claims vigorously. We
currently expect these arbitral proceedings to be concluded in Q3 2026.
South Sudan
In 2024, we sought to progress our previously announced proposed acquisition
of the PETRONAS assets in South Sudan, a large scale transaction which would
have seen subsidiary of Savannah acquiring significant interests in a
portfolio of assets which produced an estimated 145 Kbopd (gross) of crude oil
on 2023.32 Post year-end, in March 2025, we announced that we had terminated
existing discussions relating to the transaction, so as to enable the
Company's shares to be restored to trading on AIM (due to their suspension
given the transaction had been deemed a Reverse Takeover under the AIM rules
which the Company is subject to). While we would not rule out returning to
pursue energy projects in South Sudan in the future, at the time of writing
the pursuit of such projects is not viewed as a priority by the business.
Power Division
We have repositioned our Power Division business model, to pursue operating
asset opportunities in both the thermal and renewable energy spaces alongside
interests in large scale renewable energy development projects, while
maintaining our disciplined approach that all projects must meet similar
risk-adjusted investment return thresholds. Against this backdrop, post-year
end, we were pleased to announce our planned entry into the Bujagali,
Mpatamanga and Ruzizi III hydropower projects through the acquisition of
Norfund's interest in Klinchenberg. Bujagali is a flagship East African power
plant with an excellent 13-year operating and payment track record. Mpatamanga
and Ruzizi III are advanced-stage developments which are expected to generate
highly competitively priced electricity in their respective countries for the
benefit of over 30 million people. Each project has a strong partnership group
which we are excited to join.
Key Business Priorities for 2025 and H1 2026
We have nine key focus areas in our business over the course of the next 12
months:
• Delivering a further increase in our rate of Cash Collections(j) in
Nigeria. In 2025 we expect to deliver a strong increase in Cash Collections(j)
even when set against the 13% CAGR which has been achieved since the
announcement of our acquisition of the Nigerian business in 2017;
• Completion of the refinancing of our principal Nigerian debt
facilities. As at 31 December 2024, our Nigerian subsidiary, Accugas Limited,
had a US$ denominated debt facility with an outstanding balance of
approximately US$212.3 million. Post-year end we increased the Transitional
Facility to NGN772 billion (approximately US$500 million) and expect to fully
convert the remaining Accugas US$ Facility into Nigerian Naira by the end of
2025;
• Completion of the SIPEC Acquisition. This highly accretive acquisition
(see above discussion) was completed in March 2025. The deal was estimated to
be US$201 million accretive to NAV and increased Group gross 2P Reserves and
gross 2C Resources by c. 30%;
• Commencement of the Stubb Creek expansion project. At the time of
writing, we are in the process of implementing an expansion at the Stubb Creek
processing facilities. It is anticipated that, inter alia, the completion of
this project in 2026 would see an increase of more than 80% in near-term free
cash flow from the field in 2026-27;
• The advancement of our arbitral proceedings.33 As discussed
previously, SCI and SMIL have claims valued in excess of US$1 billion in
aggregate in the Chad disputes with the Paris-based legal arbitral proceedings
scheduled to conclude in the first half of 2026 ;
• The commencement of the safe and successful drilling of our Uquo
development and exploration wells. The Uquo NE development well is expected to
increase the field's productive capacity, while the Uquo South exploration
well would target a 131 Bscf Gross Unrisked GIIP prospect;
• The potential advancement of our R3 East development in Niger and/or a
return to exploration activity in the R1234 PSC area. 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 (in parallel with consideration to recommence exploration activity, all
of which is subject to reaching suitable stakeholder agreements);
• The refinement of our power sector business model. We are actively
reviewing opportunities in both the thermal and renewable power sectors,
following the repositioning of our power sector business model. We were
pleased to announce post-year end our planned entry into three East African
hydropower projects; and
• The delivery of further transformational acquisitions. The African
energy sector offers attractive M&A market dynamics, with, for example,
large divestment programmes by major and national oil companies in the
hydrocarbon sector and by private equity firms in the power sector. Savannah
is strongly positioned to continue to participate in these divestment
programmes, given our operating capabilities, regional reputation and access
to capital. We continue to view mergers and acquisitions as a core driver of
potential future value creation and are actively pursuing opportunities across
both the hydrocarbon and power sectors. Our business development pipeline is
sufficiently large that we are confident of announcing further transaction(s)
over the course of the next 24 months. Post-deal we would expect to act as a
strong asset steward, delivering better underlying operational performance and
improvements in unit carbon intensity (within the limitations of the
underlying assets) compared to the previous asset owners.
UK Public Markets Landscape
The UK equity market continues to face a number of structural challenges.
Industry data indicates that UK equity funds have experienced sustained net
outflows for several consecutive years, with cumulative redemptions in the
tens of billions of pounds over this period. Over the past two decades, UK
pension funds have also materially reduced their allocation to UK-listed
equities, from levels of around 50% in 2000 to single-digit percentages
today.34 As a result, UK-listed companies currently trade at valuation
multiples that are materially lower than many of their international peers.35
The UK Government and financial regulators have acknowledged these trends and
have stated their intention to implement reforms designed to strengthen the
attractiveness of the UK's capital markets and to encourage greater investment
in domestic equities.
Savannah has actively engaged with the London Stock Exchange in connection
with its consultation paper "Shaping the Future of AIM", contributing to this
reform dialogue. Savannah's particular focus has been on the operation of AIM
Rule 14 relating to share suspensions, under which companies may be required
to suspend trading for extended periods when undertaking large-scale
transactions deemed to be reverse takeovers. The Company believes that such
transactions can represent important opportunities for value-accretive growth;
however, the potential for prolonged suspension periods can deter companies -
particularly those operating in jurisdictions where governmental approvals are
protracted - from pursuing such opportunities.
While the Board remains supportive of the Shaping the Future of AIM initiative
and is hopeful that it will deliver reforms enhancing AIM's suitability for
high-growth companies, it also recognises the ongoing market challenges noted
above, including those relating to cost of capital. Further the Board is
concerned that, given the Company's strategy and ambitions, were AIM Rule 14
not to be significantly amended, there is a risk that the Company's shares
could be subject to another prolonged period of share suspension in relation
to a future reverse takeover. The Company continues to evaluate a range of
potential corporate transactions which, if pursued, could be classified as
reverse takeovers under the AIM Rules. Accordingly, the Board considers that
further reform of AIM Rule 14 would be beneficial in supporting the Company's
growth strategy.
As part of its normal course of business, the Board has also initiated a
review of the appropriateness of Savannah's current AIM quotation and the
potential alternative options available to the Company, including the
possibility of seeking admission to another recognised stock exchange. This
review remains at an early and exploratory stage. There can be no certainty
that it will lead to any changes to the Company's current market arrangements.
The Company intends to engage with its investor base on this matter during the
course of Q4 2025.
How We See the African Energy Transition
As in previous years' shareholder letters, I have chosen to discuss how we see
the African energy transition. Before turning to discuss this, I feel it is
important to emphasise that this is only one of several important contributing
beliefs driving what Savannah does as a company. On pages 8 to 15 of the
Annual Report we have outlined in detail "Why we do what we do". In that
section we discuss our corporate purpose and associated core beliefs which
serve to underpin our hydrocarbons AND renewable energy strategy and our
business model. In simple terms, the section explains why energy poverty in
Africa is the principal problem our Company is seeking to help solve and why
we believe this problem is one of the most urgent and important problems
facing the world today. I would urge any reader interested in further
understanding our Company to read this section, especially if they are from a
rich world background and perhaps less intuitively understand the realities of
the everyday challenges facing the 429 million people in Africa who are
defined by the World Bank as living in extreme poverty (i.e. have incomes of
less than US$2.15/day).
Energy is critical to enabling and sustaining people's quality of life. My
preferred chart for demonstrating this is below, which compares GDP per capita
to power consumption per capita. As can be seen, people without access to
energy are dramatically poorer than those with access to energy. For example,
Niger is ranked 188 out of 193 on the UN Human Development Index36 ("UN HDI")
with a GDP per capita of US$723 and power consumption per capita of 62 kWh.37
The United States of America on the other hand is ranked 17 out of 193 on the
UN HDI with GDP per capita of US$85,810 and power consumption per capita of
12,551 kWh, 11,774% and 20,144% higher respectively. A similar pattern emerges
when we look at the relationship between power consumption and other key
quality of life barometers such as life expectancy and lifetime health
outcomes.
Over 80% of today's global energy mix is provided by hydrocarbons with 53% of
this provided by oil and gas.38 The scale of investment required to sustain
the "status quo" global quality of life is immense. Global non-financial
capital expenditures for the energy sector amount to 42% of all global
capex.38 The world clearly, therefore, requires oil and gas today, and is
prepared to pay vast amounts of money to enable this. The extent to which the
world requires oil and gas in the future will depend on the absolute and
relative rate of development of renewable energy and carbon mitigation
technological improvements, and the absolute and relative rate of their
adoption. In this regard, the quote by John Kerry (The former US Climate
Change Envoy), which I have cited in my last four shareholder letters, remains
pertinent - "I am told by scientists that 50% of the reductions we have to
make by 2050 or 2045 are going to come from technologies we don't have yet."
While the pace of technological evolution and adoption may be argued to be
generally faster today than in earlier periods, I believe that it is important
to recognise that the global energy transition is likely to take a relatively
long time. As demonstrated on page 25, previous energy transitions have taken
50+ years, and the modern renewable transition only began around 2015.
Further, full displacement of the previous energy sources has not occurred in
previous transitions (i.e. coal still provided approximately 28% of the global
energy mix in 2024). Recent data for H1 2025 has seen more power generated
worldwide from renewable sources that from coal for the first time ever.39
In this regard, when we look at the forecast future energy mix, there is
currently a big difference between the trend case (i.e. what forecasters are
suggesting will actually happen) versus the net zero 2050 case. Essentially
the world appears to be on track to have around 52 - 54%40 of its energy mix
in 2050 be provided by oil and gas, which, given likely energy demand growth
over the course of the next 26 years, suggests that actual oil and gas demand
is currently not on trend to fall significantly over the period.
The foregoing contrasts dramatically with the many net zero forecasts which
generally see the total share of fossil fuel supply falling to just over 20%
of the global energy mix by 2050.40
Further, it is likely that lower-income countries, where the ability to pay
for renewable energy infrastructure is lowest and the need for low-priced
energy to deliver life changing economic growth is highest, will see
hydrocarbons form a much greater part of their energy mix in 2050 than in the
developed world. This point is demonstrated well by the map on page 24. On
average, only 57% of Africa's entire population has access to on-grid
electricity, with the electricity access rate in our countries of active
operations estimated at 71% for Cameroon, 20% for Niger and 61% for Nigeria.41
For much of Africa, the primary issue is around people being given access to
reliable and affordable power, period.
From a Savannah perspective, our primary focus is on participating in Projects
that Matter in Africa. We expect to continue to acquire hydrocarbon businesses
and to reinvest the cash flows we generate in both hydrocarbon AND renewable
energy projects. We firmly believe that Africa needs both if it is to be given
the opportunity to grow and lift ever more of her citizens out of energy
poverty.
Closing thoughts
I continue to be excited and optimistic about the future of our business and
the urgency of enabling the African energy transition through responsible
investment. We at Savannah are strongly positioned to take advantage of a
significant shift in ownership of hydrocarbon assets, while participating in
integrated power generation sources from both thermal and renewable energy
sources to deliver electricity to millions of people who are not currently
benefiting from a modern quality of life afforded by access to power. I
believe that Savannah will achieve great things over the course of the coming
years and look forward to continuing this journey with you, my fellow
shareholders.
Lastly, I would like to extend thanks to all those who contributed to our
successes in 2024 and beyond - 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.
Andrew Knott
Chief Executive Officer
22 October 2025
Chair's Statement
Dear fellow shareholders,
I am pleased to present Savannah's Annual Report for 2024. The year was marked
by significant achievements and strategic advancements, particularly around
our Nigerian assets and our portfolio of power projects.
Our commitment to safety and the well-being of our employees and contractors
remains unwavering. We are particularly pleased to have maintained our
achievement of a zero LTIR and zero TRIR in 2024, especially given the large
compression project undertaken at our Uquo CPF in Nigeria.
In 2024, we achieved a significant reduction in our Scope 1 carbon emissions
intensity to 5.7 kg CO₂e/boe (2023: 10.7 kg CO₂e/boe), which compares
favourably to the average supermajors' Scope 1 and Scope 2 carbon intensity of
21.3 kg CO₂e/boe in 2024.26
We are grateful for the continued support and engagement of our stakeholders.
As announced in 2024, the conversion of both the Uquo Field and Stubb Creek
Field to new 20-year PMLs, effective December 2023, clearly highlights our
collaborative efforts with host governments. During the year, we were honoured
with visits from both Rt. Hon. Ekperikpe Ekpo, Nigeria's Minister of State,
Petroleum Resources (Gas), and Chief Adebayo Adelabu, Nigeria's Minister of
Power, to our Uquo CPF, while in Niger, we were delighted to host H.E.
Professor Haoua Amadou, Niger's Minister of Energy, on a tour of our Parc
Eolien de la Tarka wind farm project site. During the year, we also secured an
agreement with the prestigious international financial institution, the DFC,
to fund one-third of the pre-development costs of Parc Eolien de la Tarka.
This brings the total pre-development funding secured for the project to
approximately two-thirds, following a similar agreement reached with the IFC
the prior year, and we expect to see further collaboration of this nature on
future projects.
The strength of our presence and relationships with our customers in Nigeria
was demonstrated by the successful securing and extension of three significant
gas contracts in 2024, collectively amounting to a total of up to 105 MMscfpd,
together with a further contract extension agreed post-year end. This
highlights our critical role in Nigeria's energy sector, where we currently
support c. 17% of the country's thermal power generation capacity. In
addition, our social impact projects in our host countries continue to support
a range of education, health, infrastructure and economic development
initiatives, reinforcing our commitment to promoting socio-economic prosperity
in line with Pillar 1 of our sustainability strategy.
The Board continues to use the 2018 Quoted Companies Alliance Corporate
Governance Code as the basis of the Group's governance framework and the
Corporate governance report on page 97 of the Annual Report explains how we
applied these principles in 2024. It is vital to continue to develop our Board
in line with the planned expansion of the Company, and Savannah places
significant value on diversity of experience and expertise within our
leadership team.
I would like to extend my sincere thanks to Sir Stephen O'Brien and David
Clarkson, who have recently retired from the Board after eight years of
dedicated service. Their insight, integrity and presence around the Board
table will be greatly missed, and I am pleased that both will continue to
support Savannah in consultancy roles. I also look forward to welcoming Uyi
Akpata and Kehinde Olamide Ogunwumiju to the Board in 2026. Both are highly
respected professionals in finance and legal affairs respectively, with proven
records supporting dynamic, high-growth organisations like Savannah. Their
bios are provided on page 94 of the Annual Report.
We have endeavoured to keep in close contact with our shareholders during the
recent periods of share suspension and I have been privileged to engage
personally with a number of you in my role as Chair. The Board appreciates the
patience of shareholders with the delay in publication of this Annual Report
and the resulting share suspension. Please refer to Note 2 of the financial
statements in the Annual Report for further information on the background to,
and reasons for the delay and to the report of the Audit Committee on page 100
of the Annual Report which discusses the impact on the financial statements.
The financial statements presented in the Annual Report are unchanged compared
to the preliminary results announced on 6 June 2025.
Post-year end we successfully completed both the SIPEC Acquisition and the
Uquo compression project, as well as announcing plans to acquire interests in
three hydropower projects, marking our entry into five new African countries.
I believe these significant achievements position us well for the remainder of
2025 and beyond, as we continue to grow the business and deliver for our
stakeholders.
Finally, I thank you for your continued support.
Sincerely,
Joseph Pagop Noupoué
Chair of the Board
22 October 2025
Financial Review
Financial performance ahead of market guidance
Performance Against Market Guidance 2024
Full-year 2024 Full-year 2024
Actuals Guidance
US$ million US$ million
Total Revenues(a) 258.9 >245
Operating expenses plus administrative expenses(g) 71.0 <75
Capital expenditure 23.1 Up to 50
Year in Summary
Our business in Nigeria continued to perform well during 2024, delivering gas
to five customers such as power stations and other large industrial companies,
and supporting approximately 17% of Nigeria's available thermal power
generation.
Total Income(b) for the year was US$393.8 million (2023: US$289.8 million),
comprising Total Revenues(a) of US$258.9 million (2023: US$260.9 million) and
other operating income of US$134.9 million (2023: US$28.9 million), with a
resulting Adjusted EBITDA(d) of US$181.2 million (2023 US$184.1 million).
Total Cash Collections(j) in 2024 were the highest we have received in any
year at US$248.5 million (2023: US$206.0 million) and seeking a further
increase in the rate of Cash Collections(j) in Nigeria remains a core focus in
2025.
Our Nigerian business is underpinned by long-dated, take-or-pay contracts
which have no linkage to commodity pricing and provide long-term, predictable
cash flows. At the end of 2024 we had over US$3.4 billion of future contracted
revenues with an average weighted remaining contract life of 13 years.
We progressed major capital expenditure programmes during the year including
completion of construction of the US$45 million Uquo gas compression project.
During 2024, Accugas fully utilised the NGN340 billion term facility (the
"Transitional Facility") provided by a consortium of five Nigerian banks. The
Transitional Facility has been used to pay down a substantial portion of the
existing Accugas US$ Facility which at year end stood at US$212 million. This
is the first step in the previously announced refinancing plan which will
align the currency of Accugas' principal revenue Cash Collections(j) with its
debt service obligations, significantly reducing Accugas' foreign exchange
exposure.
Following a volatile year in 2023, we saw a significant devaluation in January
2024 of the Naira, which was followed by a comparatively stable environment
for the rest of the year. This enabled Accugas to convert Naira cash balances
and use proceeds of the Transitional Facility to pay interest and principal on
the Accugas US$ Facility. The foreign exchange loss for the year amounted to
US$78.1 million (2023: US$104.7 million) which was principally a result of the
significant devaluation seen at the start of the year. Our customers pay for
gas predominantly in Naira; however, under the terms of the GSA with our
principal customer, the exchange losses realised can be invoiced via a true-up
mechanism. The invoices raised under this provision are shown in our income
statement as other operating income, referred to above.
Post-year end, in March 2025, we announced a £30.6 million equity raise with
funds raised being used to repay/acquire subsidiary-level borrowings,
accelerate business development opportunities and for general corporate
purposes. We also announced a US$200 million acquisition debt facility to
provide access to potential funding for future hydrocarbon asset acquisitions.
In the same month we also announced the completion of the SIPEC Acquisition
which was fully funded by a new debt facility arranged by The Standard Bank of
South Africa Ltd. This transaction takes our economic interest in the oil
producing Stubb Creek field to 100%. Post-year end, Stubb Creek average
production (in September 2025) has increased by approximately 24% compared to
2024 average to 3.3 Kbopd.
As set out in the Audit Committee Report (and Note 2 of the financial
statements) in the Annual Report, a number of internal financial control
matters were identified during 2025. As a result of this, and as set out in
the Independent auditor's report (and Note 2 of the financial statements) in
the Annual Report, the audit opinion has been disclaimed in relation to these
matters. A number of remedial actions have been identified and the Group is
focused on implementing enhancements, which includes the establishment of an
internal audit function during 2025.
Key Performance Metrics Summary
Full-year Full-year
2024 2023
Gross production, Kboepd 23.1 23.6
Total Income(b), US$ million 393.8 289.8
Total Revenues(a), US$ million 258.9 260.9
Revenue, US$ million 227.0 224.2
Average oil and gas sales price, US$/Mscfe 4.68 4.51
Operating expenses plus administrative expenses(g), US$ million 71.0 68.8
Operating expenses plus administrative expenses(g), US$/Mscfe 1.5 1.4
Adjusted EBITDA(d) 181.2 184.1
Net debt(h), US$ million 636.9 473.7
Leverage(i) 3.5x 2.6x
Consolidated Statement of Comprehensive Income
Revenue
Revenue during 2024 was US$227.0 million (2023: US$224.2 million), of which
88% was gas revenue US$199.8 million (2023: US$202.7 million) with US$26.4
million (2023: US$20.5 million) being derived from oil and condensate sales.
US$0.8 million (2023: US$0.9 million) was for processing of third-party crude
oil.
Gas is sold under a mixture of short and long-term gas sales agreements, all
of which have individually agreed prices defined in US$, with certain
long-term contracts adjusted annually for consumer price indexation. The
majority of our gas sales contracts are supported by investment grade(f)
guarantees, including a World Bank Partial Risk Guarantee for the Calabar
power station gas sales contract.
The weighted average sales price for the year was up 4% to US$4.68/Mscfe
(2023: US$4.51/Mscfe).
Impact of Take-or-pay Accounting Rules under IFRS 15 on Total Revenues(a)
versus Revenue
Revenue recognition for our gas sales agreements is impacted by the
take-or-pay accounting rules under IFRS 15. Under take-or-pay contracts,
customers agree to buy a minimum amount of gas from us each year. This gas is
either delivered to them, or the volume not taken (which is described as
make-up gas) is effectively pre-paid for by the customer for potential
delivery in future periods. During 2024, our customers took less gas than they
had contracted to buy, so there was a difference between invoiced oil and gas
sales of US$258.9 million (Total Revenues(a)) and revenue as reported in our
consolidated statement of comprehensive income of US$227.0 million.
A key point to highlight is the cash neutrality of the take-or-pay accounting
treatment; had our customers requested the make-up gas to be delivered to them
in the accounting year, then all the invoiced sales would have been recognised
as Revenue in the Consolidated statement of comprehensive income and our cash
generation would have been the same in either case (as this reflects receipts
from customers regardless of whether they related to delivered gas or make-up
gas). We report Total Revenues(a) as management believes that this is a more
meaningful method of describing the cash generation capacity of the business.
To provide further clarity on the take-or-pay accounting rules, please refer
to the theoretical simplified worked example which is shown on page 57 of the
2020 Annual Report and Accounts, which can be accessed on our website.
Operating Expenses plus Administrative Expenses(g)
Operating expenses plus administrative expenses(g) for the year were US$71.0
million (2023: US$68.8 million) which compared favourably with guidance of up
to US$75 million and the modest 3% increase reflects tight cost control in an
inflationary environment, especially in Nigeria, and was lower than the
increase seen in average sales price.
Depreciation, depletion and amortisation ("DD&A") amounted to US$35.7
million (2023: US$38.4 million) made up of US$13.9 million (2023: US$14.7
million) for infrastructure assets, which are depreciated on a straight-line
basis over their estimated useful life, and US$18.0 million (2023: US$20.1
million) for upstream assets, which are depreciated on a unit-of-production
basis, plus US$3.8 million (2023: US$3.6 million) for right-of-use and other
assets.
Other Operating Income
Other operating income of US$135.2 million (2023: US$28.9 million) principally
relates to amounts invoiced under the true-up mechanism in the GSA with our
principal gas customer which allows for recovery of realised foreign exchange
losses. Other operating income also includes an additional US$0.3 million
(2023: zero) of grants received for renewable development projects.
Finance Costs
Finance costs for the year were stable at US$101.1 million (2023: US$102.7
million), of which US$97.9 million (2023: US$83.3 million) related to bank and
loan note interest expense. The average interest rate on debt for the Group
was 15.5% (2023: 14.1%), this increase being driven by the greater proportion
of borrowings denominated in Naira.
Foreign Exchange Losses
Foreign exchange losses amounted to US$78.1 million (2023: US$104.7 million).
The official Naira/US$ exchange rate devalued from around NGN900/US$ to
NGN1,400/US$ in January 2024 and following such proactive action by the
Central Bank of Nigeria we have seen more stable exchange rates for the
remainder of the year, ending 2024 at NGN1,544/US$.
Consolidated Statement of Financial Position
Receivables and Payables
Trade receivables amounted to US$538.9 million (2023: US$389.9 million). The
increase was largely due to the invoicing of foreign exchange losses incurred
which were invoiced.
Trade and other payables reduced by over 25% in the year to US$80.1 million
(2023: US$108.0 million) which will be settled in the normal course of
business.
Debt
The net debt(h) at year end was US$636.9 million (2023: US$473.7 million), an
increase of 34% year on year. The NGN340 billion Accugas Transitional Facility
has now been fully drawn down and the resulting funds converted into US$ to
partially repay the Accugas US$ Facility and to pay interest due. In September
2025, the Transitional Facility was extended so that the remainder of the
Accugas US$ Facility can be repaid leaving all Accugas' borrowings in Naira,
matching the currency in which it receives revenues for gas sales. The
Transitional Facility has been increased post-year end to up to NGN772
billion.
Details of the debt facilities available to the Group are in Note 29 of the
financial statements contained in the Annual Report. It is worth noting the
treatment of the debt facility entered into to finance the acquisition of the
Chad and Cameroon Assets. Despite the Nationalisation there remains an
outstanding balance of US$134.6 million at the year end (2023: US$119.3
million). Of this amount only up to US$37 million is recourse to the Company.
Gross debt is US$669.5 million (2023: US$580.7 million) of which 94% is
non-recourse to the Company.
Leverage(i)
2024 2023
US$ million US$ million
Adjusted EBITDA(d) 181.2 184.1
Net debt(h) 636.9 473.7
Leverage (times) 3.5 2.6
Consolidated Statement of Cash Flows
Cash balances at year-end were US$32.6 million (2023: US$106.9 million). Cash
balances reduced in the year despite the strong operational Cash
Collections(j) performance due largely to unrealised foreign exchange loss
resulting from Naira devaluation early in the year of US$57.4 million (2023:
US$81.8 million). During the year, we also made debt repayments of US$148.7
million (2023: US$84.2 million) and reduced the interest due amount to US$27.2
million (2023: US$136.1 million). The debt repayments were also supported by
drawdowns under the Transitional Facility.
We continued to invest in the asset base with capital expenditures of US$23.1
million (2023: US$13.0 million) related largely to the compression project at
the Uquo CPF.
Going Concern
The Group places significant importance on managing its liquidity position and
ensuring that all parts of the business have appropriate funding as needed to
meet their obligations. The Directors have reviewed the Group's forecasted
cash flows as well as the funding requirements of the Group for the period to
31 October 2026. This forecast was prepared on a "bottom-up" basis, at each
major asset and corporate level, and it reflects the Group's best estimate of
costs and revenues for the period. The capital expenditure and operating costs
used in this forecast are based on the Group's approved corporate budget which
includes operating budgets for each of the operating subsidiaries and an
estimate of the corporate, general and administrative costs for the period.
The Directors recognise the range of risks facing the business on an ongoing
basis, as set out in the Risk management section on page 86 of this Annual
Report.
Notwithstanding the risks across the Group, both the base case forecasts and
sensitised scenarios confirm that the Directors believe that the Group and
each subsidiary company has sufficient liquidity to continue as a going
concern for the period to 31 October 2026.
Please refer to Note 2 of the consolidated financial statements in the Annual
Report for further details on the going concern review.
FY2025 Outlook
The key financial priorities for the remainder of 2025 include:
• securing a further increase in our rate of Cash Collections(j) in
Nigeria;
• implementation of enhancements to the financial control environment in
our Nigerian operations, including the establishment of a Group internal audit
function;
• with the increased Transitional Facility now in place, completion of
the refinancing of our principal Nigerian debt facilities.
Nick Beattie
Chief Financial Officer
22 October 2025
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 Limited (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.
About Savannah:
Savannah Energy PLC is a British independent energy company focused around the
delivery of Projects that Matter in Africa.
Definitions
(a) Total Revenues are defined as the total amount of invoiced sales during the
period. This number is seen by management as appropriately reflecting the
underlying cash generation capacity of the business as opposed to Revenue
recognised in the Consolidated statement of comprehensive income. A detailed
explanation of the impact of IFRS 15 revenue recognition rules on our
Consolidated statement of comprehensive income is provided in our 2020 Annual
Report in the Financial Review section on page 56. Note that Total Revenues is
not an audited number.
(b) Total Income Total Income is calculated as Total Revenues plus Other operating
income, excluding US$0.3 million (2023: zero) received as grants for
renewables development projects.
(c) Remaining life of contract revenues estimated on a maintenance adjusted
take-or-pay basis including contributions from two of our customers: Calabar
Generation Company Limited (owner of the Calabar power station), and the
Lafarge Africa PLC (owner of the Lafarge Mfamosing cement plant). Note this is
not an audited number.
(d) 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.
(e) Total Contributions to Nigeria and Niger defined as payments to governments,
employee salaries and payments to local suppliers and contractors. Where Total
Contributions refer to the period 2014-2024 they include contributions to
Nigeria during the period pre-acquisition of the Nigerian assets by Savannah.
(f) Investment grade indicates credit support from an entity which holds an
investment grade rating from either Standard & Poor's, Moody's or Fitch
Ratings.
(g) Operating expenses plus administrative expenses are defined as total cost of
sales excluding third-party gas purchases, administrative and other operating
expenses excluding royalty and depletion, depreciation and amortisation.
(h) Net debt is defined as Borrowings less Cash at bank and Restricted cash.
(i) Leverage is defined as Net debt divided by Adjusted EBITDA.
(j) Cash Collections are defined as the amount of cash received from customers.
Footnotes
1. Source: OECD, GDP growth slows slightly in the fourth quarter of 2024.
2. Source: World Economic Situation and Prospects 2025. United Nations
Department of Economic and Social Affairs.
3. Source: US Energy Information Administration. A look back at our
forecast for global crude oil prices in 2024.
4. Source: International Energy Agency. Gas Market Report, Q1-2025.
5. Source: Fitch Ratings, 2025. US refining margins tighten, shifting
focus to issuers' balance sheets.
6. Source: US Energy Information Administration, 2024. Global refinery
margins fall to multi-year seasonal lows in September.
7. Source: Fitch Ratings. Global Chemicals Outlook 2025.
8. Source: Deloitte Insights. 2025 Chemical Industry Outlook. Yankovitz,
D., Hardin, K., Kumpf, R., & Christian, A.
9. Source: Reuters, 2025. Nigeria inflation rises for second month,
spurred by food.
10. Source: MSME Africa. Naira falls 40.9% in 2024, closing at N1535/$1.
11. Source: African Business. Nigeria's reforms win praise from World Bank's
top economist.
12. Source: Extractive Industries Transparency Initiative Nigeria.
13. Source: Nigerian Upstream Petroleum Regulatory Commission ("NUPRC"). NUPRC
targets 2.1 million barrels of oil per day for 2025.
14. World Bank. (2025, May 12). Building Momentum for Inclusive Growth.
Nigeria Development Update.
15. Source: Central Bank of Nigeria, 16 October 2025.
16. Source: Fitch Ratings, 2025. Fitch Upgrades Nigeria to 'B'; Outlook
Stable.
17. Source: Article IV Consultation (July 2025) IMF.
18. Source: S&P Capital IQ.
19. Calculations made from the latest available published data reported by
Shell, BP, Chevron, ENI, Exxon, Conoco and Total.
20. Source: Financial Times, 2025. Equinor scales back renewables push 7 years
after ditching 'oil' from its name.
21. Source: Financial Times, 2025. Shell chief says green energy businesses
must start delivering.
22. Source: Financial Times, 2025. BP is a victim of wishful thinking on
fossil fuels.
23. Source: Macrotrends, 2025. Data for major oil and gas companies, including
ExxonMobil, Chevron, Shell, BP, TotalEnergies, Eni, and ConocoPhillips.
24. UK Market is the 7-year compound annual growth rate ("CAGR") for
constituent companies of the FTSE100 for the period ended 31 December 2023
(Source: Capital IQ) The Savannah comparison is the Total Revenues CAGR for
the 7-year period ended on 31 December 2024.
25. Savannah's estimate based on the generation capacity of the power stations
supplied by Accugas and Source: Theafricareport.com. Based on 2023 Nigeria
cement production figures.
26. Carbon intensity figures based on latest available published data reported
by Total, ConocoPhillips and Eni who include Scope 1 and 2 emissions in their
reported kg CO2/boe carbon intensity figures. For Savannah, Scope 2 emissions
are minor and in 2024 Scope 1 and 2 carbon intensity kg CO2/boe was the same
as Scope 1 carbon intensity kg CO2/boe.
27. Based on the McDaniel & Associates Nigeria CPR dated 31 March 2025.
28. In 2017 Savannah entered exclusive discussions to acquire the Nigerian
assets, this graph includes the period when Savannah had influence over
running the assets before completion of the acquisition.
29. The Republic of Chad has filed certain counterclaims in these
proceedings, claiming in aggregate approximately US$699.1 million (without
interest and costs). SCI and SMIL believe these counterclaims are baseless and
without merit.
30. The Republic of Chad, SHT Overseas Petroleum (Cameroon) Limited (SHT),
COTCo and certain other shareholders of COTCo have filed counterclaims in
these proceedings, claiming in aggregate approximately US$58.7 million
(without interest and costs). SMIL believes these claims are baseless and
without merit.
31. The designates of Société des Hydrocarbures du Tchad have advanced
various claims and seek an aggregate of between USD 110.9 to 136.9 million
(without interest and costs). SCI believes the claims are baseless and without
merit.
32. Source: Petronas.
33. 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 in the
first half of 2026.
34. Sources: "UK equity funds face 44-month outflow despite FTSE 100 high",
The Financial Analyst, 2025 and monthly funds flow data from Calastone FFI
Reports, February 2021-October 2025.
Glossary
2P Reserves the sum of proved plus probable reserves;
2P Resources the best estimate of Contingent Resources;
3D seismic geophysical data that depicts the subsurface strata in three dimensions. 3D
seismic typically provides a more detailed and accurate interpretation of the
subsurface strata than 2D seismic;
Accugas Accugas Ltd, a gas marketing, processing and distribution company incorporated
under the laws of Nigeria, an 80% owned subsidiary of the Company;
Accugas midstream business the business currently operated by Accugas Limited, comprising a 200 MMscfpd
gas processing facility and approximately 260 km gas pipeline network and
associated gas processing infrastructure;
Accugas US$ Facility Accugas' bank loan facility as defined in Note 29 to the financial statements;
AIM the Alternative Investment Market of the London Stock Exchange;
AIIM African Infrastructure Investment Managers;
AMOCON Amalgamated Oil Company Nigeria Limited, which produces gas from its OML 156
sole risk petroleum lease area;
ARB Agadem Rift Basin;
Barrels or bbl a unit of volume measurement used for petroleum and its products (for a
typical crude oil, 7.3 barrels = 1 tonne: 6.29 barrels = 1 cubic metre);
best estimate the middle value in a range of estimates considered to be the most likely. If
based on a statistical distribution, can be the mean, median or mode depending
on usage;
bn billion;
Board the Board of Directors of Savannah Energy PLC;
boe barrels of oil equivalent. One barrel of oil is approximately the energy
equivalent of 6 Mscf of natural gas;
bopd barrels of oil per day;
Bscf billion standard cubic feet;
Bscfpd billion standard cubic feet per day;
Bujagali Bujagali run-of-river hydropower plant;
Cameroon Assets the assets acquired from ExxonMobil being a 41.06% shareholding interest in
Cameroon Oil Transportation Company which owns and operates the Cameroon
portion of the Chad-Cameroon pipeline and FSO;
Chad and Cameroon Assets the Chad Assets and the Cameroon Assets;
CGCL Calabar Generation Company Limited (owner of the Calabar power station);
CGG CGG Services (UK) Ltd.;
CHGC Central Horizon Gas Company Limited;
CNPC China National Petroleum Corporation;
Company Savannah Energy PLC;
Committee(s) The four sub-committees of the Board: Audit Committee; Remuneration Committee;
Health, Safety, Environment, Security and Risk Committee; Compliance
Committee;
condensate light hydrocarbon compounds that condense into liquid at surface temperatures
and pressures. They are generally produced with natural gas and are a mixture
of pentane and higher hydrocarbons;
Contingent those quantities of petroleum estimated, as of a given date, to be potentially
Resources recoverable from known accumulations by application of development projects,
but which are not currently considered to be commercially recoverable due to
one or more contingencies;
COTCo Cameroon Oil Transportation Company;
CPF Central Processing Facility;
CPR Competent Persons Report - a CPR was compiled for the Niger and Nigeria Assets
by CGG Services (UK) Ltd;
Cretaceous geological strata formed during the period 140 million to 65 million years
before the present;
CSR Corporate Social Responsibility;
DCQ Daily Contracted Quantity;
DFC US International Development Finance Corporation;
DFI Development finance institution;
DRC Democratic Republic of the Congo;
EBITDA Earnings before interest, tax, depletion, depreciation and amortisation;
ECOWAS Economic Community of West African States;
E&P exploration and production;
EITI Extractive Industries Transparency Initiative (Savannah is a member);
EJ exajoules;
EMEA Europe, Middle East, and Africa;
Energie des Grands Lacs a specialised regional energy body fostering cross-border economic growth in
the Great Lakes region;
EPF Early Production Facility;
ESIA Environmental and Social Impact Assessment;
ESG environmental, social, and governance;
exploration well a well drilled to find hydrocarbons in an unproved area or to extend
significantly a known oil or natural gas reservoir;
FDI Foreign Direct Investment;
Field an area consisting of either a single reservoir or multiple reservoirs, all
grouped on or related to the same individual geological structural feature
and/or stratigraphic condition;
FIPL First Independent Power Limited (owner of the FIPL Afam, Eleme and Trans Amadi
power plants);
FUN Manifold the facilities for storing, handling and exporting crude oil from the Uquo,
Stubb Creek and Qua Iboe Fields to the Qua Iboe terminal;
GDP Gross Domestic Product;
GDPR General Data Protection Regulation;
GHG greenhouse gases;
GRI Global Reporting Initiative;
GIIP Gas initially in place;
gross resources the total estimated petroleum that is potentially recoverable from a field or
prospect;
Group Savannah Energy PLC and its subsidiaries;
GSA gas sales agreement;
GW gigawatt;
HRH His/Her Royal Highness;
HSE health, safety and environment;
HSE&S health, safety, environment and security;
HSES&R health, safety, environment, security and risk;
ICC International Chamber of Commerce;
IDA the World Bank's International Development Association;
IEA International Energy Agency;
IFC International Finance Corporation;
IFRS International Financial Reporting Standards;
Investment grade a rating that indicates that a municipal or corporate bond has a relatively
low risk of default;
International $ international dollars are a hypothetical currency that is used to make
meaningful comparisons of monetary indicators of living standards. Figures
expressed in international dollars are adjusted for inflation within countries
over time, and for differences in the cost of living between countries. The
goal of such adjustments is to provide a unit whose purchasing power is held
fixed over time and across countries, such that one international dollar can
buy the same quantity and quality of goods and services no matter where or
when it is spent;
IPC Ibom Power Company Limited (owner of the Ibom power station);
ISSB International Sustainability Standards Board;
Kboepd thousands of barrels of oil equivalent per day;
Kbopd thousands of barrels of oil per day;
km kilometre;
km2 square kilometres;
kt kilotonne;
kV kilovolt;
kWh kilowatt hour;
Lafarge Lafarge Africa PLC (owner of the Lafarge Mfamosing cement plant);
Licence an exclusive right to search for or to develop and produce hydrocarbons within
a specific area and/or a pipeline licence, as the context requires. Usually
granted by the State authorities and may be time limited;
LTIP Long-Term Incentive Programme;
LTIR Lost Time Injury Rate;
Market Abuse Regulations the Market Abuse Regulations means the retained version of the Market Abuse
Regulation (EU) No 596/2014 on market abuse which applies in the UK following
the end of the Brexit transition period;
McDaniel McDaniel & Associates Consultants Ltd.;
MJ megajoules;
MMboe millions of barrels of oil equivalent;
MMscf million standard cubic feet;
MMscfpd millions of standard cubic feet per day;
MMstb millions of standard stock tank barrels of oil;
Mpatamanga Mpatamanga hydropower development project;
Mscf thousand standard cubic feet;
Mscfe thousand standard cubic feet of gas equivalent;
MW megawatt;
NAV Net Asset Value;
Notore Notore Chemical Industries PLC;
Nigelec Société Nigerienne d'Electricité - the Nigerien electric power generation
and transmission utility;
Nigerian Assets the interest in the Uquo Gas Project owned by SEUGL, the interest in the Stubb
Creek Field owned by Universal Energy Resources and the interest in the
Accugas midstream business owned by Accugas Limited;
NGN Nigerian Naira;
NGO non-governmental organisation;
NPV Net Present Value;
NPV15 Net Present Value of expected cash flows discounted at 15% per annum;
OECD The Organization for Economic Cooperation and Development;
oil equivalent international standard for comparing the thermal energy of different fuels;
OML Oil Mining Licence, a licence granted to produce oil and gas in Nigeria;
Operator the entity that has legal authority to drill wells and undertake production of
hydrocarbons found. The operator is often part of a consortium and acts on
behalf of this consortium;
PIA Petroleum Industry Act, enacted in 2021 to provide for the legal, governance,
regulatory and fiscal framework for the Nigerian Petroleum Industry;
PML Petroleum Mining Lease (in Nigeria);
Prospective Resources those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of future
development projects;
PSC Production Sharing Contract;
PV10 PV10 (Present Value 10%) is a financial metric used in the oil and gas
industry to estimate the present value of future revenues from proved oil and
gas reserves. It represents the discounted value of expected future net cash
flows, using a 10% discount rate;
QCA Code Quoted Companies Alliance corporate governance code;
R3 East development comprises the development of Savannah main discoveries (i.e. Amdigh, Eridal,
Bushiya and Kunama);
RBL Reserve-Based Lending
reserves those quantities of petroleum anticipated to be commercially recoverable by
application of development projects to known accumulations from a given date
forward under defined conditions;
reservoir a subsurface body of rock having sufficient porosity and permeability to store
and transmit fluids. A reservoir is a critical component of a complete
petroleum system;
resources deposits of naturally occurring hydrocarbons which, if recoverable, include
those volumes of hydrocarbons either yet to be found (prospective) or if found
the development of which depends upon a number of factors (technical, legal
and/or commercial) being resolved (contingent);
RTAR Road Traffic Accident Rate - (number of accidents/kilometres driven) *
200,000;
Ruzizi III Ruzizi III hydropower development project;
SASB Sustainability Accounting Standards Board;
SCI Savannah Chad Inc.;
SIPEC Sinopec International Petroleum Exploration and Production Company Nigeria
Limited;
SIPEC Acquisition 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;
SMIL Savannah Midstream Investment Limited;
SNH Société Nationale des Hydrocarbures;
South Sudan Acquisition the proposed acquisition of PETRONAS International Corporation Limited's
entire oil and gas business in South Sudan;
South Sudan Assets the assets that Savannah proposes to acquire from PETRONAS International
Corporation Ltd,as announced on 12 December 2022. These assets comprise
interests in three Joint Operating Companies which operate Block 3/7 (40%
working interest ("WI")), Block 1/2/4 (30% WI) and Block 5A (67.9% WI), in
South Sudan;
Stubb Creek or Stubb Creek Field the Stubb Creek marginal oil and gas field located in the OML 14 block,
onshore Nigeria;
Stubb Creek EPF early production facilities located at the Stubb Creek Field;
TCFD Task Force on Climate-Related Financial Disclosures;
TOTCo Tchad Oil Transportation Company;
Transitional Facility An agreement signed by Accugas with a consortium of five Nigerian banks to
provide a NGN340 billion Naira denominated four-year term facility;
TRIR Total Recordable Incident Rate;
UN SDGs Sustainable Development Goals, a series of 17 goals fixed by the United
Nations and adopted by 193 countries in 2015;
Uquo CPF the 200 MMscfpd gas processing facilities, owned by Accugas Ltd, and located
at the Uquo Field;
Uquo Field the Uquo marginal field located in the OML 13 block, onshore Nigeria; and
Uquo Gas Project the gas project at the Uquo Field.
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