Savannah Energy Plc has reported a minimal rise in its revenues for the half year ended June 30, 2021.
The British independent energy company’s unaudited interim results for the period under review showed that total revenue rose by two per cent to $116.5m Year-on-Year from $114.6m reported in the corresponding period of 2020.
Its adjusted earnings before interest, taxes, depreciation and amortisation stood at of $91.5m, representing a three per cent increase on H1 2020.
The slight performance reflected the company’s strong cash generative quality of gas-producing assets in Nigeria.
The report highlighted that Savannah Energy’s total revenues in H1 2021 included the volume of gas customers were committed to pay for under the Take-or-Pay terms of the gas sales agreements, which includes gas that has been delivered plus gas invoiced but yet to be delivered, plus oil and condensate revenues.
Further, cash collections from the Nigerian assets rose to $101.6m compared to $82.1m in H1 2020.
The company’s operating expenses plus administrative expenses dropped to $22.5m from $22.7m H1 2020.
While profit before tax appreciated to $7.7m as against $1.2m in H1 2020, Savannah Energy’s net debt position stood at $369.4m from $408.7m as at December 2020.
According to the group, the newly signed Petroleum Industry Act will have a positive fiscal impact on its operations, with lower gas royalties offsetting higher oil and condensate royalties and additional levies.
In a statement made available to Financial Street, the company’s Chief Executive Officer, Andrew Knott, was quoted as saying, “These results show just how far we have come this year, with $116.5m of total revenues, $91.5m of adjusted EBITDA and strong free cash flow.
“Our operational performance has been excellent, which is important to all our stakeholders, as we continue to play a vital role in driving economic growth and living standards in our countries of operation.”
Knott also anticipates the growth to continue as the company progresses in discussions with ExxonMobil with respect to the proposed acquisition of its entire upstream and midstream assets in Chad and Cameroon.
The company also hopes to begin new investment programme on its Niger assets, “over which we are pleased to have agreed terms for an extension of up to 10 years,” Knott added.
