GCISavannah Energy announces 40% rise in H1 income, boosts renewables portfolio
() , an Africa-focused oil and gas company, announced its half-year results for the 6 months to June 30, 2024.
Savannah reported average daily production of 24.4 Kboepd for H1, a 3% increase on FY23, with up to 696 MW of renewable projects in motion at period-end, and targeting 1 GW+ of renewables in motion by end of 2024. Additionally, signed or extended 3 gas contracts YTD for a total of up to 105 MMscfpd.
Financially, noted a 40% increase in total income to US$233.4m, up from US$167.6m in H1 2023. Operating profit jumped to US$152.3m, 130% higher year-on-year from US$66.2m LY. Adjusted EBITDA was US$91.6m, compared to US$108.2m in H1 2023. However, when including "Other operating income", adjusted EBITDA was 47% higher year-on-year to US$201.5m.
"Other operating income" relates to the rebilling of forex losses incurred by Accugas ('s 80%-owned Nigerian gas processing and distribution subsidiary) as it converted historic Naira cash received into US dollars.
Operationally, consolidated its interest in the Stubb Creek field in Nigeria through the acquisition of 100% of SIPEC for US$61.5m. is also advancing a US$45m compression project in Nigeria aimed at expanding long-term gas production, with completion expected in 2024.
reiterated its revenue guidance of >US$245m.
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Savannah reports a strong H1 with significant growth in income and profits, acquisition of SINOPEC's upstream assets in Nigeria, and excellent progress on renewables projects in Niger and Cameroon. Total income climbed 40% to US$233.4m, which incudes US$109.9m relating to the rebilling of forex losses incurred by gas subsidiary Accugas as it converted Naira cash into USD. Three major contracts were signed YTD for up to 105 MMscfpd.
In March 2024, Savannah agreed to acquire 100% of SIPEC, whose main asset is a 49% interest in the Stubb Creek field in Nigeria, consolidating 's interest in the asset. The acquisition is expected to complete in Q4 2024. plans to double production from the field to 4.7 Kbopd within the next year via a de-bottlenecking programme. To further grow its gas production in Nigeria, is advancing a US$45m compression project, expected to complete in H2 2024.
was also in discussions to acquire PETRONAS' assets in South Sudan (149 Kbopd production in 2023), however the original agreement was terminated in August 2024. Talks are ongoing around an alternative transaction in relation to the assets, with an update expected in November 2024.
Savannah's ambitious energy diversification strategy is advancing at pace with 696 MW of renewable projects in motion throughout Africa. The company continues to move toward its near-term target of 1 GW of renewable projects in motion by end of 2024, and 2 GW by end of 2026. Investors should expect further announcements prior to year-end regarding 's entry into specific renewables projects.
Savannah maintained ambitious guidance for FY24, expecting total revenues in excess of US$245m, operating and administrative expenses of up to US$75m, and capital expenditure of up to US$50m.
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