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AfrOil NEWS IN BRIEF AfrOil

PERFORMANCE
Nigeria/Niger: Savannah

Energy announces 2021
Annual Report and audited

accounts

Savannah Energy, the British independent
energy company focused around the delivery
of Projects that Matter in Africa, has announced
that the 2021 Annual Report and audited
Accounts and investor presentation are now
available to download from the Company’s
website.
A summary of the financial and operational
performance is shown below (as previously Nigerian operations was 22,300 boepd, a 14% 2021, with the announcement in March 2022 of
reported on 7 June 2022), together with the increase from the average gross daily produc- the Company’s inaugural renewable energy pro-
Chairman’s Statement, CEO Shareholder Letter tion of 19,500 boepd in FY 2020; Of the FY 2021 ject, the up to 250 MW Parc Eolien de la Tarka
and Financial Review from the Annual Report. total average gross daily production of 22,300 wind farm project in Niger. This is targeted to
Key FY 2021 Financial Highlights: FY 2021 boepd, 88% was gas, including a 15% increase increase the country’s on-grid electricity supply
Total Revenues of $230.5mn (+7% on FY 2020 in gas production from the Uquo gas field, from by up to 40%. Project sanction is targeted for
Total Revenues of $215.9mn). This is ahead of 103 mcf per day (17,100 boepd) in FY 2020 to 2023 with first wind power in 2025; and This
the Company’s previously issued FY 2021 guid- 118 mcf per day (19,700 boepd) in FY 2021; Suc- was followed in May 2022 with the signing of an
ance of Total Revenues of greater than $205mn. cessful drilling and completion of the Uquo-11 agreement with the Ministry of Petroleum and
Average realised gas price of $4.19 per mcf gas production well; Publication of an updated Energy of the Republic of Chad for the devel-
(+6% on the 2020 average realised gas price of Competent Person’s Report (CPR) for Nigeria, opment of up to 500 MW of renewable energy
$3.96 per mcf) and an average realised liquids with an organic 2P reserve upgrade on the Uquo projects. The up to 300 MW Centrale Solaire
price of $69.9 per barrel (+51% compared to the field, resulting in a 20% increase in Nigeria 2P de Komé project would represent the largest
2020 average realised liquids price of $46.2 per reserves to 77.7mn boe (net); Uquo compression solar plant in sub-Saharan Africa (excluding
barrel); Total cash collections from the Compa- project progressed with compressor packages South Africa) and potentially the largest bat-
ny’s Nigerian assets of $208.2mn (+24% on FY acquired, completion of Front End Engineering tery storage project on the continent. The up to
2020 cash collections of $167.4mn); Adjusted & Design studies and long-lead items specified 200 MW Centrales d’Energie Renouvelable de
EBITDA of $175.0m (+7% on FY 2020 Adjusted ready for ordering. N’Djamena in Chad would more than double
EBITDA of $163.2mn); Adjusted EBITDA New gas sales agreement (GSA) signed with the existing installed generation capacity supply-
margin remained broadly unchanged at 76%; Mulak Energy Ltd in Nigeria in February 2021, ing the capital city and increase the total installed
Group operating expenses plus administrative representing Savannah’s first Gas-to-CNG sales on-grid power generation capacity in Chad by
expenses of $49.9mn (FY 2021 initial guidance agreement; Commencement of gas sales to First up to an estimated 63%.
of $55-65mn); Group Depreciation, Depletion Independent Power Ltd (FIPL) power plant, Financial Guidance Reiterated for FY 2022:
and Amortisation of $36.2mn (FY 2021 initial FIPL Afam, in Nigeria, in November 2021, Savannah reiterates its financial guidance for the
guidance of $38.3mn based on the actual pro- marking Savannah’s first entry into the high- full year 2022 as follows: Total Revenues greater
duced volumes); Capital Expenditure for the growth Port Harcourt Industrial area. Followed than or equal to $215mn; Group operating
year of $32.5mn (FY 2021 initial guidance of by the extension of the FIPL GSA in April 2022 expenses plus administrative expenses less than
up to $65m); Group cash balances of $154.3mn post-year-end, almost doubling the maximum or equal to $75mn; Depreciation, depletion and
as at December 31, 2021 (+46% versus FY 2020 contracted volume to up to 65 mcf per day and amortisation $21mn +$2.3/boe; Capital expend-
year-end Group cash balances of $106.0mn); extending coverage to a total of three of FIPL’s iture less than or equal to $85mn.
Group net debt of $370.0mn as at December power stations in Rivers State, Nigeria; Post-year- Update on Savannah’s Sustainability Strategy:
31, 2021 (-9% versus FY 2020 year-end Group end, in February 2022, a new GSA was signed Savannah’s focus in 2021 was on articulating the
net debt of $408.7mn); Leverage was 2.1x, (20% with Central Horizon Gas Co., a major gas dis- level of ambition across the four pillars of our
improvement on 2020 leverage of 2.5x), and tribution company situated in the South-South sustainability strategy: (1) Promoting socio-eco-
an interest cover ratio of 2.8x (FY 2020 ratio of region of Nigeria; Post-year-end, in June 2022, nomic prosperity; (2) Ensuring safe and secure
2.4x); Total Group assets amounted to $1.349bn a further new GSA was signed with TransAfam operations; (3) Supporting and developing our
at year-end (2020: $1.207bn); and Successfully Power Ltd (TAPL), a subsidiary of Transnational people; and (4) Respecting the environment. We
announced a proposed placing to raise $65.8mn Corp. of Nigeria plc, for the provision of gas to its conducted an exercise to benchmark the Com-
of equity financing and secured up to $432m of power plants in Rivers State, Nigeria. pany’s performance against industry peers and
debt financing for the proposed Chad and Cam- Niger Production Sharing Contract con- leaders, which helped us to develop our strategy
eroon Asset Acquisitions. The equity financing tractual and commercial framework completed and link key performance metrics to our ambi-
completed in January 2022. and finalised with commercial terms agreed tions and to the 13 relevant United Nations Sus-
Key FY 2021 Operational Highlights: FY and announced in September 2021; Savannah’s tainable Development Goals which anchor our
2021 average gross daily production from the Renewable Energy Division was established in strategy.

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