Savannah Energy Reports $258.7m Revenue for 2024
Despite this marginal decline, the company reported a significant boost in total income, which rose to $393.6 million from $289.8 million in the previous year.
In its annual trading update released on Tuesday, Savannah highlighted the pivotal role of its Nigerian operations in driving performance. Gross production from Nigeria averaged 23.1 Kboepd in 2024, remaining steady compared to 23.6 Kboepd in 2023, with gas accounting for 88% of total production.
The company’s growth was attributed to increased operational efficiency and higher operating income, particularly from its midstream subsidiary, Accugas Limited. Accugas achieved milestones in its Uquo Central Processing Facility compression project, aimed at expanding gas production capacity in the medium term.
Savannah Energy also reported cash collections of $248.5 million for the year, a rise from $206 million in 2023. However, cash balances dropped to $32.6 million as of December 31, 2024, compared to $107 million the previous year. Meanwhile, the company’s net debt increased to $634 million, up from $473.7 million in 2023.
Looking ahead, Savannah confirmed ongoing procurement for a two-well drilling campaign at the Uquo Field, scheduled to commence in the second half of 2025. The company also provided updates on its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, with the transaction expected to close in the first quarter of 2025.
Beyond its hydrocarbon activities, Savannah is diversifying into renewable energy. Key projects under development include the 250 MW Parc Eolien de la Tarka wind farm in Niger and the 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. The company aims to establish a renewable energy portfolio exceeding 2 GW by the end of 2026.
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Savannah Energy’s Chief Executive Officer expressed satisfaction with the company’s performance in 2024 and optimism about its future.
He remarked, “We anticipate an exciting 2025, with large-scale operational programs in Nigeria and continued expansion in both the hydrocarbon and renewable energy sectors.”
In a related development, Savannah Energy has signed share purchase agreements with Sinopec International Petroleum Exploration and Production Corporation and Jagal Ventures Limited to acquire 100% of Sinopec’s Nigerian subsidiary, Sinopec International Petroleum Exploration and Production Company Nigeria Limited.
