GCISavannah Energy publishes FY21 report and appoints new CFO
(SAVE ) said it expects 2022 revenue to be more than or equal to $215m, ahead of its previously issuedFY21 guidance that forecast revenues as greater than $205m.
Separately, the firm announced that Interim CFO Nick Beattie has been confirmed as the permanent CFO while Chair Steve Jenkins will step down from his role at the 2023 AGM.
While the African-focused British independent energy company swung to a pretax loss of $7.7 million in 2021 from a profit of $10.4 million in the previous year, the Company saw revenue climb by 6.8% to $230.5m from $215.9m in 2020 as a result of higher gas prices in the year.
Revenue was thus ahead of the company’s previous guidance of £205 million for the year. Meanwhile, average gross daily production from its Nigerian operations was 22,300 barrels of oil equivalent per day, a 14% increase from the 19,500 boepd average achieved in 2020.
The average realised gas price was $4.19 per standard cubic foot, thus representing a 6% increase on the average realised gas price of USD3.96 per Mscf achieved the previous year.
Chief Executive Officer, Andrew Knott, said Savannah’s proposed acquisitions of the Chad and Cameroon Assets(m), together with the new renewable energy projects in Niger and Chad, are demonstrative of the magnitude of the deals the company is capable of achieving.
He commented: “Looking forward to the rest of 2022, I am confident in where we are as a business. We expect to deliver on our financial guidance. We expect to complete our entry to Chad and Cameroon during 3Q22 and to likely announce further hydrocarbon acquisitions”
He added that Savannah expects to grow its Renewable Energy Division, with several new large-scale greenfield opportunities under review and negotiation and finalise the refinancing of its Nigerian debt and to unveil the development and exploration plans for its Niger assets.
In reference to the energy transition in Africa, he told investors: “I would urge shareholders to spend time reading through my CEO Letter to Shareholders which will be in the Annual Report, and which discusses our 2021 performance and 2022 plans in more detail, while also discussing our views of the “how” and the “why” we see the African energy transition evolving and how this relates to Savannah’s hydrocarbon AND renewables business model.”
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Shares in Savannah Energy have increased by nearly 60% in value in the past three months.
Last week, Savannah signed a deal with Chad’s Ministry of Petroleum and Energy for the development of up to 500 MW in renewable energy projects set to supply electricity.
Last week’s announcement served as the second and third large-scale greenfield renewable energy projects announced by the African-focused British energy company this year – with the first being in Niger with the development of the 250 MW Parc Eolien de la Tarka Project.
The projects in Chad, respectively, are expected to be financed through a combination of Savannah Energy’s internally generated cash flows as well as project-specific debt.
Chairman of Savannah Energy, Steve Jenkins, highlighted that the proposed acquisitions of the Chad and Cameroon Assets(m) together with the new renewable energy projects in Niger and Chad, demonstrate “the magnitude of the deals” the company is capable of achieving.
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