{"id":52682,"date":"2021-10-02T12:36:17","date_gmt":"2021-10-02T11:36:17","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=52682"},"modified":"2021-10-02T15:38:59","modified_gmt":"2021-10-02T14:38:59","slug":"savannah-energy-2021-half-year-results-and-outlook-for-the-year","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/savannah-energy-2021-half-year-results-and-outlook-for-the-year\/","title":{"rendered":"Savannah Energy 2021 Half Year Results And Outlook For The Year"},"content":{"rendered":"
<\/div>\n
Savannah Energy PLC, the African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, has announced its unaudited interim results for the six months ended 30 June 2021 and outlook for the FY 2021.<\/div>\n
<\/div>\n
Andrew Knott, Cheif ExecutIve Officer of Savannah Energy, said:<\/div>\n
\u201cThese results show just how far we have come this year, with US$116.5m of Total Revenues1, US$91.5m of Adjusted EBITDA2 and strong free cash flow. Our operational performance has been excellent which is important to all our stakeholders as we continue to play a vital role in driving economic growth and living standards in our countries of operation. This growth is set to continue as we progress discussions with ExxonMobil with respect to the proposed acquisition of its entire upstream and midstream assets in Chad and Cameroon and begin an anticipated new investment programme on our Niger assets, over which we are pleased to have agreed terms for an extension of up to 10 years.<\/div>\n
I\u2019d like to thank all of our shareholders and other stakeholders for their continued support as we look to capitalise on the opportunities available to us.\u201d<\/div>\n
<\/div>\n
H1 2021 Financial Highlights<\/div>\n
\u2022 Total Revenues1 of US$116.5m (up 2% on H1 2020 Total Revenues of US$114.6m), in line with 2021 guidance of over US$205m for the full year;<\/div>\n
\u2022 Average realised gas price of US$4.2\/Mscf (H1 2020: US$3.9\/Mscf) and an average realised liquids price of US$63.5\/bbl (H1 2020: US$48.3\/bbl);<\/div>\n
\u2022 Cash collections from the Nigerian Assets in H1 2021 were US$101.6m compared to US$82.1m in H1 2020;<\/div>\n
\u2022 Adjusted EBITDA2 of US$91.5m (H1 2020: US$89.2m);<\/div>\n
\u2022 Adjusted EBITDA margin broadly unchanged at 79% (H1 2020: 78%);<\/div>\n
\u2022 Operating expenses plus administrative expenses3 of US$22.5m (H1 2020: US$22.7m) being US$1.0\/Mscfe (H1 2020: US$1.1\/Mscfe);<\/div>\n
\u2022 Profit before tax of US$7.7m (H1 2020: US$1.2m);<\/div>\n
\u2022 Drilling of a gas well on the Uquo field commenced in September 2021 and the non-associated gas compression project at the Accugas gas processing plant is progressing, full year capital expenditure guidance of up to US$65m maintained;<\/div>\n
\u2022 Net debt position as at 30 June 2021 of US$369.4m (Year-end 2020: US$408.7m) with Adjusted Leverage4 of 2.3x (Year-end 2020: 2.5x); and<\/div>\n
\u2022 Cash at bank5 of US$135.7m as at 30 June 2021 (Year-end 2020: US$106.0m)<\/div>\n
<\/div>\n
H1 2021 Operational Highlights<\/div>\n
\u2022 Average gross daily production, of which 88.6% was gas, increased 6% during H1 2021 to 22.6 Kboepd (H1 2020: 21.3 Kboepd). This includes a 6% increase in production from the Uquo gas field compared to the same period last year, from 113.5 MMscfpd (18.9 Kboepd) to 120.2 MMscfpd (20.0 Kboepd);<\/div>\n
\u2022 On 5 February 2021 Accugas signed a new gas sales agreement (\u201cGSA\u201d) with Mulak Energy Limited (\u201cMulak\u201d) representing Savannah\u2019s entry into Nigeria\u2019s high-growth compressed natural gas (\u201cCNG\u201d) market;<\/div>\n
\u2022 On 2 June 2021, Savannah announced that the Company is in exclusive discussions with ExxonMobil Corporation with respect to the proposed acquisition of its entire upstream and midstream asset portfolio in Chad and Cameroon; and<\/div>\n
\u2022 On 7 June 2021, Savannah published its re-focused sustainability strategy as part of the 2020 Annual Report focusing on four key strategic pillars with the strategy anchored around the 13 most relevant UN Sustainable Development Goals where we believe Savannah can have the biggest economic, environmental, social and governance impact<\/div>\n
<\/div>\n
Post Period Update<\/div>\n
\u2022 Drilling of a new gas production well in the Uquo field, Uquo 11, commenced on 21 September 2021;<\/div>\n
\u2022 On 29 September 2021, the Niger Ministry of Petroleum amalgamated Savannah\u2019s four licence areas (covered by the previous R1\/R2 PSC and the R3\/R4 PSC) into a single PSC (R1\/R2\/R3\/R4), valid for up to a further 10 years. This lays the foundation for an anticipated new investment programme in our R3 East development in 2022;<\/div>\n
\u2022 On 12 August 2021 it was announced that, as a result of the Company\u2019s growth in recent years and the planned significant further expansion, the decision was taken to restructure the finance function of the Company. As a result, Ms Isatou Semega-Janneh left, and ceased to be a Director of, the Company; and<\/div>\n
\u2022 On 16 August 2021 His Excellency President Muhammadu Buhari signed the Petroleum Industry Act 2021 (the \u201cPIA\u201d) into law indicating the government of Nigeria\u2019s commitment to enhancing the governance, administrative and fiscal regimes of the domestic industry. It is anticipated that the PIA will have a positive fiscal impact on Savannah<\/div>\n
<\/div>\n
FY 2021 Guidance Reiterated<\/div>\n
We reiterate our FY 2021 guidance as follows:<\/div>\n
\u2022 Total Revenues1 greater than US$205.0m from upstream and midstream activities associated with the Company\u2019s three active Nigerian gas sales agreements and liquids sales from the Company\u2019s Stubb Creek and Uquo fields. Any revenues received from new additional gas sales agreements would, therefore, be incremental to this;<\/div>\n
\u2022 Operating expenses plus administrative expenses3 of US$55.0m to US$65.0m;<\/div>\n
\u2022 Depreciation, Depletion and Amortisation of US$19m fixed for infrastructure assets plus US$2.6\/boe for oil and gas assets; and<\/div>\n
\u2022 Capital expenditure of up to US$65.0m<\/div>\n<\/p>
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Savannah Energy PLC, the African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, has announced its unaudited interim results for the six months ended 30 June 2021 and outlook for the FY 2021.\u00a0, the African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, has announced its unaudited interim results for the six months ended 30 June 2021 and outlook for the FY 2021.\u00a0<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[],"coauthors":[2391],"class_list":["post-52682","post","type-post","status-publish","format-standard","","category-business","category-news"],"yoast_head":"\nSavannah Energy 2021 Half Year Results And Outlook For The Year - 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