Savannah Energy Plc, a British independent energy company, reported a robust financial performance for the fiscal year ending December 31, 2024, demonstrating growth and exceeding financial guidance in several key areas. While total revenues saw a marginal decrease to $258.9 million from the $260.9 million reported in 2023, this was more than offset by a substantial increase in other operating income, propelling the company’s total income to $393.8 million, a significant jump from $289.8 million in the preceding year. This overall growth underscores the company’s diversified income streams and robust operational performance despite a slight dip in revenues. The substantial surge in other operating income, which climbed to $134.9 million from a mere $28.9 million in 2023, played a pivotal role in boosting the company’s overall financial performance.
The company’s success is further highlighted by its achievement of key financial targets and projections. Revenues, despite the minor decline, surpassed the guidance of over $245 million, registering a six percent positive deviation. Furthermore, Savannah Energy demonstrated prudent cost management with operating and administrative expenses totaling $71 million, five percent lower than the projected cap of $75 million. Capital expenditure also remained significantly below the forecasted $50 million, contained at $23.1 million due to a phased spending approach. This controlled approach to expenditures contributed to the overall positive financial outcome.
Savannah Energy also saw significant improvement in cash collections, achieving a record high of $248.5 million, a substantial 21 percent increase from $206 million in 2023. This strong cash generation underscores the effectiveness of the company’s revenue collection processes. However, the year-end cash balance decreased to $32.6 million from $107 million in 2023, while net debt rose to $636.9 million from $473.7 million. The gross debt figure reached $669.5 million, a significant portion of which (94 percent) was non-recourse to the PLC, mitigating the direct impact of debt on the parent company. This suggests that the increase in debt likely stems from strategic investments and acquisitions to bolster long-term growth.
The company’s profitability remained strong, as reflected by the adjusted EBITDA of $181.2 million. While this figure is comparatively flat compared to the $184.1 million reported in 2023, it maintains a robust margin of 70 percent, demonstrating the company’s consistent ability to generate profits from its operations. The overall growth in assets, from $1.5 billion in 2023 to $1.6 billion in 2024, further reinforces the positive trajectory of the company’s financial position.
Operationally, Savannah Energy maintained a stable average daily production of 23.1 thousand barrels of oil equivalent per day (kboepd). Notably, a significant majority (88 percent) of this production comprised gas, indicating the company’s strong foothold in the gas sector. This consistent production level, coupled with the growth in assets, positions the company well for future growth opportunities.
Looking towards the future, Savannah Energy’s CEO, Andrew Knott, expressed optimism about the company’s prospects, highlighting the achieved operational and financial targets and anticipating further progress in 2025. This includes expected growth in both cash collections and production capacity, driven by ongoing investments in the Uquo field in Nigeria. These investments demonstrate the company’s commitment to expanding its operations and capitalizing on growth opportunities in strategically important regions. This positive outlook reinforces investor confidence in Savannah Energy’s ability to deliver sustained growth and profitability in the years to come.
