British independent energy company, Savannah Energy Plc, has announced its financial results for the year ended 31st December 2024, with a total income of $393.8 million, marking a significant increase from $289.8 million reported in 2023. This growth represents a strong performance despite challenges like rising debt and a sharp drop in the company’s cash balance.
In the financial report released recently, Savannah Energy explained that its revenue for 2024 stood at $258.9 million, a slight drop from the $260.9 million it made in 2023. However, the company recorded a massive jump in other operating income, which rose from $28.9 million in 2023 to $134.9 million in 2024. This increase in other income helped push the total income much higher than the previous year.
Savannah Energy, which is listed on the London Stock Exchange and has major oil and gas operations in Nigeria and other parts of Africa, said it beat its financial guidance for the year. The company had earlier projected that revenue would surpass $245 million, but ended the year 6 per cent higher at $258.9 million. Also, it successfully reduced its operating and administrative expenses to $71 million, staying below the budget cap of $75 million. On the investment side, it spent only $23.1 million on capital projects, far less than the $50 million it had planned to spend, due to staggered investment strategies.
Cash collections during the year hit a record $248.5 million, up from $206 million in 2023, reflecting a 21 per cent increase. This shows that the company was more effective in collecting payments from its customers. But while collections improved, the cash balance at the end of 2024 dropped sharply to $32.6 million, compared to $107 million in 2023. This was partly due to an increase in debt. The company’s net debt rose to $636.9 million, up from $473.7 million in 2023. Its total gross debt stood at $669.5 million, out of which 94 per cent is said to be non-recourse, meaning the debt is tied to specific projects and not the company’s general assets.
Savannah’s adjusted EBITDA—a key profit measure that shows earnings before interest, tax, depreciation and amortisation—remained stable at $181.2 million, slightly lower than the $184.1 million recorded in 2023. The company maintained a strong EBITDA margin of 70 per cent, showing strong operational efficiency. The total value of Savannah’s assets grew to $1.6 billion, up from $1.5 billion in 2023.
Production output also remained steady in 2024. Savannah said it produced an average of 23,100 barrels of oil equivalent per day (boepd) during the year, and 88 per cent of this output was gas. Most of this production came from its operations in Nigeria, especially the Uquo field in Akwa Ibom State, which supplies gas to various power plants and industrial users in the country.
Speaking about the performance, Andrew Knott, Chief Executive Officer of Savannah Energy Plc, said the company was happy to have achieved its key goals. He said the 2024 performance reflects the firm’s focus on careful spending, high efficiency, and strong revenue from its gas business. Knott said the company expects to grow its cash collections and production capacity in 2025, especially as more investments go into the Uquo field in Nigeria.
Savannah Energy is a major player in Nigeria’s domestic gas market, supplying natural gas to support electricity generation and industrial production. The Uquo field is one of its flagship assets, and the company has continued to invest in expanding capacity and infrastructure around it.
Despite the concerns about rising debt and reduced cash reserves, the company’s steady earnings and strong asset base suggest that it remains in a good position to continue its operations and explore new growth opportunities, both in Nigeria and across other African countries.
British independent energy company, Savannah Energy Plc, has announced its financial results for the year ended 31st December 2024, with a total income of $393.8 million, marking a significant increase from $289.8 million reported in 2023. This growth represents a strong performance despite challenges like rising debt and a sharp drop in the company’s cash balance.
In the financial report released recently, Savannah Energy explained that its revenue for 2024 stood at $258.9 million, a slight drop from the $260.9 million it made in 2023. However, the company recorded a massive jump in other operating income, which rose from $28.9 million in 2023 to $134.9 million in 2024. This increase in other income helped push the total income much higher than the previous year.
Savannah Energy, which is listed on the London Stock Exchange and has major oil and gas operations in Nigeria and other parts of Africa, said it beat its financial guidance for the year. The company had earlier projected that revenue would surpass $245 million, but ended the year 6 per cent higher at $258.9 million. Also, it successfully reduced its operating and administrative expenses to $71 million, staying below the budget cap of $75 million. On the investment side, it spent only $23.1 million on capital projects, far less than the $50 million it had planned to spend, due to staggered investment strategies.
Cash collections during the year hit a record $248.5 million, up from $206 million in 2023, reflecting a 21 per cent increase. This shows that the company was more effective in collecting payments from its customers. But while collections improved, the cash balance at the end of 2024 dropped sharply to $32.6 million, compared to $107 million in 2023. This was partly due to an increase in debt. The company’s net debt rose to $636.9 million, up from $473.7 million in 2023. Its total gross debt stood at $669.5 million, out of which 94 per cent is said to be non-recourse, meaning the debt is tied to specific projects and not the company’s general assets.
Savannah’s adjusted EBITDA—a key profit measure that shows earnings before interest, tax, depreciation and amortisation—remained stable at $181.2 million, slightly lower than the $184.1 million recorded in 2023. The company maintained a strong EBITDA margin of 70 per cent, showing strong operational efficiency. The total value of Savannah’s assets grew to $1.6 billion, up from $1.5 billion in 2023.
Production output also remained steady in 2024. Savannah said it produced an average of 23,100 barrels of oil equivalent per day (boepd) during the year, and 88 per cent of this output was gas. Most of this production came from its operations in Nigeria, especially the Uquo field in Akwa Ibom State, which supplies gas to various power plants and industrial users in the country.
Speaking about the performance, Andrew Knott, Chief Executive Officer of Savannah Energy Plc, said the company was happy to have achieved its key goals. He said the 2024 performance reflects the firm’s focus on careful spending, high efficiency, and strong revenue from its gas business. Knott said the company expects to grow its cash collections and production capacity in 2025, especially as more investments go into the Uquo field in Nigeria.
Savannah Energy is a major player in Nigeria’s domestic gas market, supplying natural gas to support electricity generation and industrial production. The Uquo field is one of its flagship assets, and the company has continued to invest in expanding capacity and infrastructure around it.
Despite the concerns about rising debt and reduced cash reserves, the company’s steady earnings and strong asset base suggest that it remains in a good position to continue its operations and explore new growth opportunities, both in Nigeria and across other African countries.
