8 June 2022
Savannah Energy PLC
("Savannah", "the Company" or "the Group")
2021 Annual Report and Audited Accounts
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in
A summary of the financial and operational performance is shown below (as previously reported on 7 June 2022), together with the Chairman's Statement, CEO Shareholder Letter and Financial Review from the Annual Report.
Key FY 2021 Financial Highlights
· FY 2021 Total Revenues[1] of
· Average realised gas price of
· Total cash collections from the Company's Nigerian assets of
· Adjusted EBITDA of
· Adjusted EBITDA margin remained broadly unchanged at 76%;
· Group operating expenses plus administrative expenses[3] of
· Group Depreciation, Depletion and Amortisation of
· Capital Expenditure for the year of
· Group cash balances of US$154.3m[4] as at 31 December 2021 (+46% versus FY 2020 year-end Group cash balances of
· Group net debt of
· Leverage[5] was 2.1x, (20% improvement on 2020 leverage of 2.5x), and an interest cover ratio[6] of 2.8x (FY 2020 ratio of 2.4x);
· Total Group assets amounted to
· Successfully announced a proposed placing to raise
Key FY 2021 Operational Highlights
· FY 2021 average gross daily production from the Nigerian operations was 22.3 Kboepd, a 14% increase from the average gross daily production of 19.5 Kboepd in FY 2020;
· Of the FY 2021 total average gross daily production of 22.3 Kboepd, 88% was gas, including a 15% increase in gas production from the Uquo gas field, from 103 MMscfpd (17.1 Kboepd) in FY 2020 to 118 MMscfpd (19.7 Kboepd) in FY 2021;
· Successful drilling and completion of the Uquo-11 gas production well;
· Publication of an updated Competent Person's Report ("CPR")[7] for
· Uquo compression project progressed with compressor packages acquired, completion of Front End Engineering & Design studies and long-lead items specified ready for ordering;
· New gas sales agreement ("GSA") signed with Mulak Energy Limited in
· Commencement of gas sales to First Independent Power Limited's ("FIPL") power plant, FIPL Afam, in
· Post-year end, in February 2022, a new GSA was signed with the Central Horizon Gas Company, a major gas distribution company situated in the South-South region of
· Post-year end, in June 2022, a further new GSA was signed with TransAfam Power Limited ("TAPL"), a subsidiary of Transnational Corporation of
· Niger Production Sharing Contract contractual and commercial framework completed and finalised with commercial terms agreed and announced in September 2021;
· Savannah's Renewable Energy Division was established in 2021, with the announcement in March 2022 of the Company's inaugural renewable energy project, the up to 250 megawatts ("MW") Parc Eolien de la Tarka wind farm project in
· This was followed in May 2022 with the signing of an agreement with the Ministry of Petroleum and Energy of the
Financial Guidance Reiterated for FY 2022
Savannah reiterates its financial guidance for the full year 2022 as follows:
Total Revenues1 |
≥ |
Group Operating expenses plus administrative expenses3 |
≤ |
Depreciation, Depletion and Amortisation |
|
Capital Expenditure |
≤ |
Update on Savannah's Sustainability Strategy
Savannah's focus in 2021 was on articulating the level of ambition across the four pillars of our sustainability strategy: (1) Promoting socio-economic prosperity; (2) Ensuring safe and secure operations; (3) Supporting and developing our people; and (4) Respecting the environment. We conducted an exercise to benchmark the Company's performance against industry peers and leaders, which helped us to develop our strategy and link key performance metrics to our ambitions and to the 13 relevant United Nations Sustainable Development Goals which anchor our strategy. In particular, the following key performance metrics were identified to measure performance and progress, many of which are industry-leading:
· Continued our strong health & safety record with a zero Lost Time Injury Rate ("LTIR") (2020: zero) and a 0.34 Total Recordable Incident Rate ("TRIR") in 2021 (2020: 0.28);
· Increased our Total Contributions[8] to host nations
· Increased our investment in social impact projects in
· Number of transport related incidents remains exceptionally low with two in 2021 covering over 1.6 million transport kilometres travelled (2020: five incidents);
· Maintained senior management female gender diversity at 35% (2020: 35%);
· Established a multimillion-dollar, world class training scheme across our whole business for 2021-23, resulting in a 22% increase in training hours per employee and a 32% increase in total working hours of training;
· Maintained a low carbon intensity of 13.3 kg CO2e/boe (2020: 12.8 kg CO2e/boe) compared to our industry peer group;
· Maintained our zero hydrocarbon spills record defined as not greater than one barrel reaching the environment (2020: zero);
· Measured our freshwater use for the first time, recording usage of approximately 5,359 m3 of freshwater from boreholes and mains supply; and
· Minimised our negative impacts on biodiversity, putting in place Biodiversity Action Plans at our four operational sites to minimise any impact from our operations.
During 2021 and 2022, we have implemented the Company's new sustainability performance and reporting framework across the Group. We implemented a digital tool to track our performance on our key sustainability indicators on a month-by-month and country-by-country basis and have integrated seven leading sustainability reporting standards into our reporting framework. We plan to publish the respective detailed disclosure reports setting out our alignment to each standard during H2 2022.
Savannah is pleased to have been recognised for the progress in our sustainability reporting to date, having been shortlisted for 'ESG Initiative of the Year' at the Chartered Governance Institute
For further information, please contact:
Savannah Energy |
+44 (0) 20 3817 9844 |
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Andrew Knott, CEO |
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Nick Beattie, CFO |
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Sally Marshak, Head of IR & Communications |
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Strand Hanson (Nominated Adviser) |
+44 (0) 20 7409 3494 |
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James Spinney |
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Ritchie Balmer |
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Rob Patrick |
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finnCap Ltd (Joint Broker) Christopher Raggett Tim Redfern |
+44 (0) 20 7220 0500 |
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Panmure Gordon ( John Prior |
+44 (0) 20 7886 2500 |
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Hugh Rich James Sinclair-Ford |
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Camarco |
+44 (0) 203 757 4980 |
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Billy Clegg |
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Owen Roberts Violet Wilson |
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The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation (EU) No. 596/2014, which forms part of
About Savannah Energy:
Savannah Energy PLC is an AIM quoted British independent energy company focused around the delivery of Projects that Matter in
Further information on Savannah Energy PLC can be found on the Company's website: www.savannah-energy.com.
Chairman's statement
Delivering Projects that Matter in
Steve Jenkins
Chairman of the Board
Dear fellow shareholders,
2021 was a year of substantial delivery for Savannah, driven by our corporate mission of developing and investing in Projects that Matter in
In June 2021, we announced our proposed acquisitions of the
Corporate governance and stakeholder engagement
The Board is committed to ensuring Savannah's sustainable success for the benefit of our shareholders whilst also having regard to all our other stakeholders' interests. We continue to use the 2018 Quoted Companies Alliance Corporate Governance Code (the "QCA Code") as the basis of the Group's governance framework and the Corporate Governance Report in our 2021 Annual Report and Accounts explains how we applied the principles of the QCA Code in 2021.
I am delighted with the progress the company has made since its listing in 2014. After eight years as Chairman, I have decided to step down at or prior to the 2023 Annual General Meeting. It has been a privilege to lead the Board during this phase of the Group's development and I look forward to continuing as a Non-Executive Director. The search for a Chair-Designate has commenced and there will be a period of handover in order to ensure a smooth transition. In the meantime, I am pleased to welcome Nick Beattie to the Board, following confirmation of his appointment as Group Chief Financial Officer.
Similarly, I look forward to welcoming three new, highly experienced Directors to the Board following completion of the proposed ExxonMobil transaction. The incoming Directors all have successful backgrounds in a diverse range of industries and will significantly strengthen the Board's experience. I would also like to recognise the significant contribution which David Jamison has made to the Group as a Director. David will be retiring from the Board at the end of June 2022, and I am delighted that he has agreed to assume the role of Honorary President of Savannah.
The Board continues to place great emphasis on engagement with all our stakeholder groups and more information on this is provided in our Section 172 Statement on page 31 of our 2021 Annual Report and Accounts.
Outlook
Savannah has the ambition and focus to be the leading African energy company, in particular the operating partner of choice for both companies and governments. The proposed acquisitions of the
Steve Jenkins
Chairman of the Board
7 June 2022
CEO Shareholder Letter
Championing the African energy transition
Andrew Knott
Chief Executive Officer
Dear fellow shareholders
I would like to welcome you to our eighth Annual Report as a listed company. I have divided this year's letter into three sections. The first section discusses our Company's continued industry leading financial, operational and sustainability performance. The second discusses our key focus areas for 2022 and 2023. The third section discusses the "how" and the "why" we see the African energy transition evolving, explaining the relevance and power of our hydrocarbon AND renewables business model.
Before turning to the first section, I would like to draw your attention to two guest authored articles in this year's Annual Report. The first article is authored by His Excellency Professor Yemi Osinbajo SAN, Vice President of the Federal Republic of Nigeria and Chairman of Niger Delta Power Holding Company, and highlights his views (shared by many in
Savannah's 2021 performance
2021 saw the global economy begin to recover from the impacts of the Covid-19 pandemic. Global GDP rose by 5.5%1, while benchmark oil and gas prices increased by over 50%2. The financial performance of the global energy industry reflected this rebound with the seven Supermajors recording a combined
In line with this trend, Savannah performed strongly. Our Total Revenues(a) and Adjusted EBITDA(c) increased by 7% year-on-year to
The
Operationally, the key workstream of note was the drilling of the Uquo-11 gas well in
From a business development perspective, the year was dominated by our proposed acquisition of the
We see strong upside potential across the asset portfolio we are acquiring. I am, therefore, hopeful that in future shareholder letters, I will be able to write about the achievement of these organic upside cases in the
In 2021, we announced the formation of our Renewable Energy Division and, post period, signed agreements for the development of large-scale greenfield solar and wind projects up to a total of 750 MW with the Governments of
The up to 200 MW, the Centrales d'Energie Renouvelable de N'Djamena alone would more than double the existing installed generation capacity supplying the capital city and increase total installed on-grid power generation capacity in
For both
In
As always, we maintained our strong focus around safe operational delivery. We recorded a zero incident Lost Time Injury Rate ("LTIR") and a Total Recordable Incident Rate ("TRIR") of 0.34 per 200,000 person hours. Our performance against key sustainability metrics, such as carbon intensity (13.3kg CO2e/boe), senior management gender diversity (35% female) and local employee ratios (99%) all remained equally industry-leading in 2021.
We also continued to strengthen our sustainability performance and reporting framework, implementing a Group-wide digital tool to track our performance on key sustainability indicators on a month-by-month and country-by-country basis, and fully integrating this with our chosen seven leading sustainability reporting standards. Not only is this progress reflected in the Sustainability Review section of this year's Annual Report but we plan to publish separate ESG disclosure reports later this year setting out our alignment to our chosen ESG standards.
Key focus areas for 2022 and 2023
Over the course of the next two years, I expect there to be several key focus areas for the business. These include:
• The planned refinancing of our
• Adding new gas sales agreements in
• Recommencing field operations in
• Completion and integration of the proposed acquisition of the
• Further hydrocarbon acquisitions. We believe there are asset divestment programmes valued in excess of
• Expansion of our renewable energy business. Savannah believes the African renewables energy market represents a potentially vast target market of over 310 GW by 2030 and that our hydrocarbon asset operational management skills are directly transferrable to this space.
As can be seen from the above list, we are unequivocally an "AND" company. We are seeking to deliver strong performance both for the short AND long-term across multiple fronts. We are pursuing growth opportunities in both the hydrocarbon and renewable energy areas. This approach permeates our entire business and how we have built, and will continue to build, our corporate infrastructure.
How we see the African energy transition
Energy is critical to enabling and sustaining people's quality of lives. People without access to energy are dramatically poorer than those with access to energy. For example,
83.2%8 of today's global energy mix is provided by hydrocarbons. 56% of this is provided by oil and gas. The scale of investment required to sustain the "status quo" global quality of life is immense, with approximately 30% of all global capital expenditures (estimated at
The world clearly, therefore, requires oil and gas today, and is prepared to pay vast amounts of money to enable this. The extent to which the world requires oil and gas in the future will depend on the absolute and relative rate of renewable energy and carbon mitigation technological improvements and the absolute and relative rate of adoption of these improvements. In this regard, John Kerry's (the US Climate Change Envoy) quote, which I cited in my last shareholder letter, remains pertinent - "I am told by scientists that 50% of the reductions we have to make by 2050 or 2045 are going to come from technologies we don't have yet."
While the pace of technological evolution and adoption may be argued to be generally faster today than in earlier periods, I believe that it is important to recognise that the global energy transition is likely to take a relatively long time. Previous energy transitions have taken fifty plus years, and the modern renewable transition only began around 2015. Further, full displacement of the previous energy sources has not occurred in previous transitions (i.e. coal is still 27.2%8 of the 2022 global energy mix).
In this regard, when we look at the forecast future energy mix, there is currently a big difference between the trend case (i.e. what forecasters are suggesting will actually happen) versus the Net Zero 2050 case. Essentially the world appears to be on track to have around 45%8 of its energy mix in 2050 to be provided by oil and gas, which, given likely energy demand growth over the course of the next 28 years, suggests that actual oil and gas demand is currently not on trend to fall significantly over the period.
The foregoing contrasts dramatically with the many Net Zero demand forecasts which generally see oil and gas demand fall to below 20% of the global energy mix by 2050. Further, it is likely that lower income countries, where the ability to pay for renewable energy infrastructure is lowest, and the need for low priced energy to deliver life changing economic growth is highest, will see hydrocarbons form a much greater part of their energy mix in 2050 than in the developed world. On average, only 56% of
From a Savannah perspective, our primary focus is on participating in Projects that Matter in
Closing thoughts
I would hope that, having read through this letter, my reasons for being optimistic around the future of our business are clear. We are a purposeful organisation, doing societally essential work. The opportunities associated with the African energy transition (hydrocarbon acquisitions from Supermajor sellers and the build-out of our renewable energy business) represent a once in a generation opportunity, which we at Savannah are strongly positioned to take advantage of. We have made significant investments in our people, infrastructure and capabilities, and have well-developed regional and financial stakeholder relationships and credibility. We have a strong track record of "getting things done". I believe that Savannah will achieve great things over the course of the coming years and look forward to continuing this journey with you, my fellow shareholders.
Lastly, I would like to express my gratitude to all those who contributed to our successes in 2021 - my incredibly dedicated and passionate colleagues, our host governments, communities, local authorities and regulators, our shareholders and lenders, and our customers, suppliers and partners. Thank you all.
Andrew Knott
Chief Executive Officer
7 June 2022
Footnotes - CEO Shareholder Letter:
1. Source: World Bank: Global Economic Report.
2. Source:
3. Source: 2021 annual reports and results announcements for BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Royal Dutch Shell and Total.
4. Source: Bloomberg.
5. Source: UBS: Global Integrated Oil & Gas Analyser.
6. Forecasts based on
7. Source: United Nations Human Development Report 2020, World Bank.
8. Source: S&P Global IHS Markit, Energy & Natural Resources Research & Analysis.
9. Source: BP Statistical Review of World Energy 2021.
10. Source: World Bank
Financial review
Delivering strong results for 2021
Nick Beattie
Chief Financial Officer and Company Secretary
Performance against market guidance 2021
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Full Year 2021 |
Full Year 2021 |
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Actuals |
Guidance |
Total Revenues(a) US$ million |
230.5 |
>205.0 |
Operating expenses plus administrative expenses(g), US$ million |
49.9 |
55.0-65.0 |
Group depreciation, depletion and amortisation |
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Capital expenditure (cash), US$ million |
32.5 |
Up to 65.0 |
The year in summary
Savannah produced a strong set of results for 2021, delivering Adjusted EBITDA(c) of
The table below summarises the key financial metrics for the business and these once again show material year-on-year improvement in performance with increased production, prices, revenues and cash generation as well as improved Leverage(k). Of particular note is the improvement seen in Total Revenues(a) - this represents the total amount of invoiced sales during the period and this increased by 7% during 2021. The gas business accounts for 93% of these Total Revenues(a) and it is important to note that this business benefits from long-term, fixed price gas contracts which have an average weighted remaining contract life of 16 years resulting in a contracted revenue stream of
These take-or-pay contracts have no linkage to oil price and provide a stable, predictable cash flow which can be seen in the record level of Cash collections(j) of
We have invested heavily during H2 2021 (and continuing into 2022) to scale up the business ahead of completion of the proposed acquisitions of the
Key performance metrics summary
|
Full Year 2021 |
Full Year 2020 |
Gross production, Kboepd |
22.3 |
19.5 |
Total Revenues(a), US$ million |
230.5 |
215.9 # |
Revenue, US$ million |
185.8 |
169.0 |
Average gas sales price, US$/Mscf |
4.19 |
3.96 |
Average oil sales price, US$/bbl |
69.9 |
46.2 |
Normalised operating expenses plus administrative expenses(g), US$ million |
49.9 |
42.5 |
Normalised operating expenses plus administrative expenses(g), US$/Mscfe |
1.1 |
1.1 |
Cash collections(j), US$ million |
208.2 |
167.4# |
Total cash, US#160;million |
154.3 |
106.0 |
Trade and other receivables, US#160;million |
231.6 |
122.4 |
Adjusted EBITDA(c) |
175.0 |
163.2# |
Adjusted EBITDA(c) margin |
76% |
76%# |
Net debt (i), US$ million |
370.0 |
408.7 |
Leverage(k) |
2.1x |
2.5x |
(Loss)/profit before tax, US#160;million |
(7.7) |
10.4 |
Profit/(loss) after tax, US#160;million |
17.1 |
(6.4) |
# In order to compare performance on a like-for-like basis the 2020 figures have been represented to exclude the impact of an advance payment of
Consolidated Statement of Comprehensive Income
Revenue
Revenue in 2021 was
91% of revenue is for gas which is sold under long term gas sales agreements which have fixed US Dollar prices, adjusted for consumer price escalation. The average price of gas sold during 2021 was
The average price achieved for oil sales was
Total Revenues(a)
We report Total Revenues(a) as management believes that this is an appropriate method of reflecting the cash generation capacity of the business. During 2021, our customers had on average contracted to buy more gas (132 MMscfpd) than they ultimately requested to be delivered (111 MMscfpd), which resulted in a difference between invoiced oil and gas sales of
Operating expenses plus administrative expenses(g)
Operating expenses plus administrative expenses(g) for 2021 were
On a unit cost basis Operating expenses plus administrative expenses(g) remained flat at
Depreciation, depletion and amortisation ("DD&A") amounted to
Adjusted EBITDA(c)
Adjusted EBITDA(c) was
Year ended 31 December |
2021 US$ million |
2020 US$ million |
Percentage change |
Operating profit |
87.7 |
92.8 |
-6% |
Add back: Depletion, depreciation and amortisation |
36.2 |
36.3 |
|
Adjust for Transaction costs |
7.4 |
- |
|
EBITDA |
131.3 |
129.1 |
2% |
Add: other invoiced amounts |
44.7 |
66.9 |
- |
Deduct: Royalty payable on additional gas volume11 |
(1.0) |
(1.8) |
- |
Exclude impact of expected credit loss and other related adjustments |
- |
(11.0) |
- |
Deduct: Advance payment received |
- |
(20) |
|
Adjusted EBITDA#(c) Comprising: |
175.0
193.0 (18.0) |
163.2
167.7 (4.5) |
7%
|
# In order to compare performance on a like-for-like basis the 2020 Adjusted EBITDA has been represented to exclude the impact of an advance payment of
Finance income and costs
Finance costs for the year amounted to
The interest cover ratio(h) was 2.8 times, improved from 2.4 times in 2020.
Foreign exchange losses
Foreign exchange losses amounted to
Unrealised losses are
Realised losses of
The Calabar power station Gas Sales Agreement includes a foreign exchange "true-up" clause whereby realised foreign exchange losses on this contract are subsequently invoiced to Calabar NIPP and recovered and recognised as a reduction in foreign exchange losses.
The Group continues to have an active contracting strategy to ensure that wherever possible providers of goods and services, both locally and overseas, are paid in Naira.
Tax
The tax credit of
The deferred tax credit is made up of a credit of
Consolidated Statement of Financial Position
Debt
The Net debt(i) at year-end for the Group was
Once completed, this refinancing would align the currencies of the Group's principal revenue streams with its debt service obligations and would significantly reduce the Group's foreign exchange exposure. It would also bring further benefits through the increase in tenor and enhancements to the structure of the debt facilities. Pending completion of the refinancing, Accugas has agreed with the current lenders to hold a sufficient Naira equivalent cash balance to cover outstanding debt service requirements - at 31 December 2021 this amounted to
As shown in the following table, the Leverage(k) position of the Group has improved compared to the prior year and this is considered to be a conservative level given the long-dated (>16 year) gas sales contracts in place and the high quality, long-life asset base which supports the supply contracts:
Leverage(k)
|
2021 US$ million |
2020 US$ million |
Adjusted EBITDA#(c) |
175.0 |
163.2 |
Net debt(i) |
370.0 |
408.7 |
Naira held in cash to pay interest |
75.5 |
48.0 |
Adjusted net debt(f) |
445.5 |
456.7 |
Leverage(k) (times) |
2.1 |
2.5 |
Adjusted Leverage(l) (times) |
2.5 |
2.8 |
In December 2021, two new debt facilities were signed in connection with the funding of the proposed acquisitions of the
Receivables and payables
The Group has Trade and other receivables of
The Group has current Trade and other payables of
Cash flow
As at 31 December |
2021 US$ million |
2020 US$ million |
Net cash generated from operating activities |
128.1 |
115.6 |
Net cash used in investing activities12 |
(46.4) |
(11.1) |
Net cash used in financing activities |
(25.2) |
(46.8) |
Impact of exchange rate changes on cash balances |
(8.3) |
0.4 |
Net increase in cash at bank |
48.2 |
58.1 |
Cash at bank at end of year |
152.7 |
104.4 |
Restricted cash |
1.6 |
1.6 |
Total cash |
154.3 |
106.0 |
Total cash balances as at 31 December 2021 amounted to
Cash flows from operating activities amounted to
Total investing activity2 spend was
Financing net outflows for the year amounted to
Going Concern
The Group places significant importance in managing its liquidity position and ensuring that all parts of the business have appropriate funding as needed to meet their obligations. The Directors have considered the Group's forecasted cash flows and funding requirements for the period to 30 June 2023 (including sensitivity analysis of key assumptions which has been undertaken) and in addition the Directors have considered the range of risks facing the business on an ongoing basis as set out in the risk section on page 70 of the Annual Report. The principal assumptions made in relation to the going concern assessment relate to (1) the timely payments of our gas invoices by our customers, (2) the forecast commodity price environment and (3) continued access to FX markets. Considering this last point, the Directors are highly confident that the Group will continue to be able to access US dollars as required to maintain going concern status. However, a minimal risk exists that the Group may not be able to continue to do so and/or the Group may not be able to amend its debt facilities and/or complete its planned debt refinancing. These facts indicate that a material uncertainty exists that may cast significant doubt on the Group's, ability to continue to apply the going concern basis of accounting. Notwithstanding this, the Directors have full confidence in the Group's forecasts and have continued to adopt the going concern basis in preparing the consolidated financial statements.
Please refer to Note 2 of the Consolidated Financial Statements in our 2021 Annual Report and Accounts for further details on the going concern review.
2022 financial guidance and outlook
In 2022, we are providing the following guidance in relation to our business. This guidance relates only to our Nigerian and Nigerien assets and does not include the assets that we are proposing to acquire in
• Total Revenues(a) of greater than
• Group Operating expenses and administrative expenses(g) of up to
• Group Depreciation, Depletion and Amortisation of
• Group capital expenditure of up to
Nick Beattie
Chief Financial Officer and Company Secretary
7 June 2022
Definitions
(a) Total Revenues are defined as the total amount of invoiced sales during the period. This number is seen by management as appropriately reflecting the underlying cash generation capacity of the business as opposed to Revenue recognised in the Consolidated Statement of Comprehensive Income. A detailed explanation of the impact of IFRS 15 revenue recognition rules on our Consolidated Statement of Comprehensive Income is provided in our 2020 Annual Report in the Financial Review section on page 56. Note that Total Revenues is not an audited number. # In order to compare performance on a like-for-like basis the 2020 Total Revenues have been represented to exclude the impact of an advance payment of
(b) Remaining life of contact revenues estimated on a maintenance adjusted Take or Pay basis including contributions from three of our customers: Calabar Generation Company Limited (owner of the Calabar power station), Ibom Power Company Limited (owner of the Ibom power station) and the Lafarge Africa PLC (owner of the Lafarge Mfamosing cement plant). Note this is not an audited number.
(c) Adjusted EBITDA is calculated as profit or loss before finance costs, investment revenue, foreign exchange gains or loss, expected credit loss and other related adjustments, fair value adjustments, gain on acquisition, taxes, transaction costs, depreciation, depletion and amortisation and adjusted to include deferred revenue and other invoiced amounts. Management believes that the alternative performance measure of Adjusted EBITDA more accurately reflects the cash-generating capacity of the business. # In order to compare performance on a like-for-like basis the 2020 Adjusted EBITDA has been represented to exclude the impact of an advance payment of
(d) Total contributions to
(e) Investment grade indicates credit support from an entity which holds an investment grade rating from either Standard & Poor's, Moody's or Fitch Ratings.
(f) Adjusted Net debt is defined as Net debt adjusted for
(g) Group Operating expenses plus administrative expenses are defined as total cost of sales, administrative and other operating expenses excluding royalty and depletion, depreciation and amortisation.
(h) Interest cover ratio is Adjusted EBITDA(c) divided by Finance costs excluding (i) unwinding of a discount on a long-term payable, (ii) unwind of discount on contract liabilities and (iii) unwinding of decommissioning discount, less Interest Finance Income.
(i) Net debt is defined as Borrowings less Cash at bank and Restricted cash.
(j) Cash collections are defined as the amount of cash received from customers. # In order to compare performance on a like-for-like basis the 2020 Cash collections have been represented to exclude the impact of an advance payment of
(k) Leverage is defined as Net debt divided by Adjusted EBITDA.
(l) Adjusted Leverage is defined as Adjusted net debt divided Adjusted EBITDA. This measure thus excludes sums held to pay interest from the calculation in parallel with Adjusted net debt.
(m)
Unaudited Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
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Year ended |
Year ended |
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31 December |
31 December |
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2021 |
2020 |
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Unaudited |
Audited |
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Note |
US |