Savannah Energy swings to profit, sees stronger cash flow ahead

Savannah Energy PLC on Friday reported a sharp rise in income for 2024 and said it expects further growth in cash collections this year, as well as a ‘significant’ boost to production capacity in 2026 following heavy investment in Nigeria.

The energy company focused on projects in Africa said total income rose to $393.8 million in 2024 from $289.8 million the year before, supported by a more than fourfold increase in other operating income to $134.9 million from $28.9 million. Total revenue slipped slightly to $258.9 million from $260.9 million, though it beat company guidance.

The company reported a pretax profit of $30.3 million in 2024, swinging from a $68.9 million loss the year before.

Adjusted earnings before interest, tax, depreciation and amortisation were little changed at $181.2 million, compared to $184.1 million in 2023, maintaining a margin of 70%. Average daily gross production was broadly steady at 23,100 barrels of oil equivalent per day.

Savannah achieved record cash collections of $248.5 million, up 21% from $206.0 million the prior year, and said it expects a ‘strong increase’ in collections in 2025. At year-end, net debt rose to $636.9 million from $473.7 million.

The company announced a 21% increase in proven and probable reserves at its flagship Uquo gas field in Nigeria following a new independent assessment. Total reserves at Uquo and Stubb Creek have now risen 81% since acquisition.

Savannah said these efforts are expected to deliver ‘significant production capacity growth’ from 2026 onward.

Shares in Savannah Energy were down 2.0% at 6.37 pence in London on Friday afternoon.

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