Savannah Energy plc has recorded a 29 percent increase in total revenue in its Nigerian operations to $71 million in the first quarter of this year from $55 million in the first quarter of last year, according to its recent unaudited financial and operational results.
Details of the firm’s latest financials seen by BusinessDay, the total revenue in the first quarter of 2023 hit $147.6 million as the Group’s cash balance stood at $217.3 million, with a net debt of $412.2 million.
During the first quarter of this year, Savannah sold gas to seven customers, including Calabar Electricity Generation Company Limited, Lafarge Africa PLC, Ibom Power Company Limited, First Independent Power Limited, the Central Horizon Gas Company Limited, TransAfam Power Limited and Notore Chemical Industries PLC.
As part of its plans to advance the Company’s ability to maintain and grow its gas production levels over the coming years, the report said Savannah is progressing with the $45 million compression project at the Uquo Central Processing Facility (CPF).
“Following the front-end engineering and the associated order of long lead items, detailed design work commenced in Q1 2023 and is scheduled to be completed in Q4 2023,” the report said.
It also recorded $76.6 million in Chad’s upstream revenues, according to a report by the energy company.
Whether Savannah will ever benefit from these assets is to be decided at international arbitration.
A decree from March 23 nationalised Savannah’s Chad interests, while a law passed on March 31 confirmed this. The move covered both the upstream interests and Chad’s part of the export pipeline.
Savannah said the move was “in direct breach” of conventions to which both sides were a party. The company has begun arbitration in Paris, but this may take up to two years.
Savannah continues to hold an indirect stake of 41.06 percent in the Cameroon section of the export pipeline. The pipeline transported 128,800 barrels per day in the quarter. Savannah earns a transportation tariff from these barrels.
“In terms of operations, its average gross daily production for the quarter stood at 54,900 barrels of oil equivalent produced per day (boepd), compared to the average gross daily production of 21,600 boepd in Q1 2022,” the report said.
“Excluding Chad production, Q1 2023 average gross daily production on a like-for-like basis was 25,900 boepd, a 20 percent increase compared to Q1 2022.”
Also, out of the total average gross daily production of 54,900 boepd, 43 percent was gas, including a 22 percent increase in production from the Uquo gas field compared to the same period last year, from 116.4 million standard cubic feet per day (MMscfpd) (19, 400 boepd) to 142.2 MMscfpd (23, 700 boepd).
Andrew Knott, chief executive officer of Savannah Energy said the financial updates demonstrate the strength and potential of our business and the positive impact we are making in our host countries.
“We are happy to report that our total revenues have grown by 26 percent compared to last year and have doubled since 2017. Our oil and renewable energy projects in Niger are advancing rapidly,” he said.
“Our Cameroon Oil Transportation Company (COTCo) in Cameroon continues to deliver a strong, consistent financial performance. On the new ventures front, we continue to progress our planned acquisition of PETRONAS’ assets in South Sudan and expect to announce a series of new utility-scale renewable power projects throughout Q2 and Q3 2023.”