Savannah sees Nigerian gas sales, profits rise
The west African gas-focused explorer Savannah Energy reported a year-on-year rise in operating profit for 2020 thanks to the acquisition of upstream and mid-stream Nigerian gas assets early in 2019.
At $93.3mn it was more than eleven times greater than the $8.2mn in 2019. Adjusted Ebitda was $183.6mn, up from $153.8mn. Revenues were also sharply up, at $169.0mn – of which gas sales accounted for $157.1mn – compared with $17.76mn. Pre-tax earnings were $129.6mn, up from $91.6mn, it said May 28.
In May last year it saw an all-time gas production record from the Nigerian assets of 177mn ft³/day. It also supplied a record 13% of the gas used in the power generation sector in June.
Despite the headwinds, CEO Andrew Knott said the company recordd "a robust financial and operating performance. We beat all of our original financial guidance metrics.”
Further growth is on the way with three gas sales agreements signed since the beginning of 2020, two of which opened up new high-potential growth markets. These include the First Independent Power Afam power station GSA in the “potentially high-growth Port Harcourt Industrial area in Nigeria,” while the GSA signed this year with Mulak Energy provides it with growth in the compressed natural gas market.
Q1 2021 output was up 9% year on year to 22,000 barrels of oil equivalent/day, an all-time high. It also refinanced its $371mn Accugas debt facility. The average realised gas price of $3.96/’000 ft³ was up 11% on the 2019 average.