Savannah Energy Plc has posted $91.7m in revenue for the half year ended June 30, 2020 together with a trading update up to August 31, 2020 and outlook for the fiscal year 2020.
The British independent oil and gas company focuses around activities in Nigeria and Niger Republic.
According to the unaudited interim result of the firm posted on its official website, total cash collections from the Nigerian assets in the year-to-date period to August 31, 2020 were $133.1m against $103.8m in the corresponding period of 2019, while a group cash balance of $84.7m and net debt of $426.8m were recorded on August 31, 2020.
The result indicated that average gross daily production increased from 17.7 per cent to 21.3kboepd relative to 18.1kboepd in H1 2019, which included a 22.4 per cent increase in production from the Uquo gas field compared to the same period last year, from 92.7mmscfpd or 15.4kboepd to 113.5 mmscfpd or 18.9kboepd.
Speaking about the result, CEO of Savannah Energy, Andrew Knott, said, “I believe that our first-half results clearly demonstrate the transformation Savannah has undergone to become a cash-generative business, benefitting from a long-dated, gas-biased revenue stream with no meaningful oil price exposure.
“I am pleased that we are able to reiterate our core FY 2020 Total Revenues ($200m+) and cost guidance ($68.0 to $72.0m) today, while also reporting cash collections in the period to the end of August of $133.1m. Over 94 per cent of our forward revenue guidance is derived from three gas sales agreements with a weighted average contracted life of 15 years.”
In H1 2020, the result showed that Accugas increased gas supply to the Nigerian power sector by 35 per cent versus in Q4 2019, compared to wider industry performance, which saw the gas shortage to supply the Nigerian power grid increasing by 33 per cent versus in Q4 2019.
Further analysis also showed that the company achieved an all-time Nigerian Assets gas production record of 177mmscfpd on May 30, 2020, while Accugas customers achieved an all-time record peak contribution of 11.5 per cent of Nigeria’s electricity generation or 486MW on May 23, 2020, with the contributed electricity being exclusively generated from Accugas sales gas.
“As a company, we are extremely cognisant of the challenging macro-economic backdrop and the critical role our projects play in our countries of operation. While we believe our business is strongly positioned at this time, we fully understand the importance of working in partnership with our project stakeholders to ensure ‘win-win’ outcomes as we continue to develop our business.
“In this regard, we continue to see strong growth potential in both of our core business units, with gas sales to new customers expected in Nigeria and new oil sales from the R3 East project in Niger following the installation of an Early Production System, which is expected to commence by the end of FY 2021,” the British independent oil and gas company focused around activities in Nigeria and Niger,” Knott added.
