Savannah Energy lifts full-year revenue guidance

The AIM-traded firm said its cash balance stood at $193.1m, up from $149.5m, while net debt narrowed to $310.1m from $370.2m.

It updated its 2022 guidance, with total revenue now expected to top $270m, up from $215m, while group operating expenses plus administrative expenses were unchanged at up to $75m.

Group depreciation, depletion and amortisation was also left unchanged at $21m fixed for infrastructure assets plus $2.30 per barrel of oil, while 2022 capital expenditure expectations were lowered to $35m from up to $85m.

On the operational front, Savannah reported average gross daily Nigeria production for the 11 months through November of was 27,100 barrels of oil equivalent per day, making for a 22% increase from the average gross daily production of 22,200 barrels in the same period last year.

Of that total average gross daily production 90% was gas, including a 25% increase in production from the Uquo gas field compared to the same period last year.

Following Savannah's completion of the acquisition of ExxonMobil's upstream and midstream asset portfolio in Chad and Cameroon, and assuming the operatorship of the upstream assets on 9 December, production in Chad had continued uninterrupted at an average gross daily rate of around 28,000 barrels of oil per day.

In 2022, Savannah said it had expanded its customer base, signing additional gas sales agreements with three new customers including the Central Horizon Gas Company, TransAfam Power and Notore Chemical Industries, as well as agreeing a contract extension with First Independent Power to supply three of its power plants - FIPL Afam, Eleme and Trans Amadi.

As a result, Savannah said it now supplied gas to 24% of Nigeria's thermal power generation capacity.

“We are pleased to be updating our 2022 financial guidance this morning, driven by the significant year-on-year increase in production volumes that has been delivered in Nigeria - the fourth year in a row,” said chief executive officer Andrew Knott.

“Looking forward to 2023 we are excited by the opportunities available to the business in all the four countries in which we operate across Africa in both the hydrocarbon and renewable energy sectors and look forward to updating investors further next year.”

Reporting by Josh White for Sharecast.com.