Savannah Energy’s 2024 Performance: A Year of Steady Progress and Strategic Expansion
Savannah Energy Plc, a British independent energy company with a significant presence in Africa, navigated the complexities of the energy market in 2024, achieving steady performance while laying the groundwork for future growth. The company’s annual trading update revealed a slight dip in total revenues, reaching $258.7 million compared to $260.9 million in 2023. However, this minor decline was offset by a substantial increase in total income, which soared to $393.6 million from $289.8 million in the previous year. This rise in income underscores Savannah Energy’s growing operational efficiency and the increasing contributions from its midstream subsidiary, Accugas Limited.
Savannah Energy’s Nigerian operations continued to be the bedrock of its performance, contributing significantly to the company’s overall results. Gross production averaged 23.1 Kboepd (thousand barrels of oil equivalent per day) in 2024, maintaining consistency with the 23.6 Kboepd recorded in 2023. Notably, gas production accounted for 88% of this total, aligning with Savannah’s strategic focus on natural gas as a key energy source for the region. The continuous and stable production levels highlight the reliability and resilience of Savannah’s Nigerian operations, ensuring a consistent contribution to the company’s financial performance.
Accugas Limited, Savannah’s midstream subsidiary, played a pivotal role in bolstering the company’s performance. The ongoing Uquo Central Processing Facility compression project is poised to significantly expand gas production capacity in the medium term, paving the way for increased revenue generation. This strategic investment underscores Savannah’s commitment to maximizing the potential of its existing assets and capitalizing on the growing demand for natural gas in the region. The company’s robust cash collections, amounting to $248.5 million, represent a notable increase from the $206 million collected in 2023, signaling improved financial health and efficient revenue management. However, a decline in cash balances to $32.6 million from $107 million in 2023, coupled with an increase in net debt to $634 million from $473.7 million, indicates the financial implications of ongoing investments and acquisitions aimed at driving future growth.
Looking ahead, Savannah Energy has outlined a clear roadmap for expansion and diversification. The company has initiated procurement for a two-well drilling campaign in the Uquo Field, scheduled to commence in the second half of 2025. This proactive approach to exploration and production demonstrates Savannah’s commitment to maximizing its hydrocarbon resources and securing its long-term production capacity. Furthermore, the planned acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, slated for completion in the first quarter of 2025, will further solidify Savannah’s foothold in the Nigerian energy market. This strategic acquisition is expected to bring valuable assets and expertise under Savannah’s umbrella, enhancing its operational capabilities and market reach.
Beyond its traditional oil and gas operations, Savannah Energy is actively pursuing a strategy of diversification by venturing into the renewable energy sector. The company is driving forward major renewable energy projects, including the 250 MW Parc Eolien de la Tarka wind farm project in Niger and the 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. These ambitious projects reflect Savannah’s commitment to sustainable energy development and its vision to become a key player in the African renewable energy landscape. The company’s ambitious target of achieving a portfolio of over 2 GW of renewable energy projects by the end of 2026 underscores its determination to play a significant role in the global transition to cleaner energy sources.
Savannah Energy’s CEO expressed confidence in the company’s performance and its future prospects. The CEO’s optimism stems from the company’s robust operational performance, strategic investments, and diversification efforts. The planned operational programs in Nigeria, coupled with the continued growth in both the hydrocarbon and power sectors, are expected to drive significant advancements for Savannah Energy in the coming years. The acquisition of Sinopec’s Nigerian assets further strengthens Savannah’s position in the market, adding to its resource base and operational capacity. With its strategic investments, diversified portfolio, and forward-looking approach, Savannah Energy is well-positioned to capitalize on the evolving energy landscape and contribute significantly to the sustainable development of the African energy sector.
