Savannah Energy grows revenue 17%, boosts daily production by 8% as cash collections surge

By Ambrose Nnaji

Savannah Energy Plc has reported a strong operational and financial performance for the first four months of 2026, posting higher production, rising revenues, improved cash collections and a stronger balance sheet as it advances key energy projects across Africa.

Ahead of its Annual General Meeting (AGM), the British independent energy company announced that average gross daily production at its Stubb Creek field in Nigeria rose by 8 per cent to 3,100 barrels of oil per day (bopd), up from 2,800 bopd in the corresponding period of 2025. The increase follows the completion of the SIPEC acquisition and ongoing production expansion activities at the field.

The company’s trading update showed revenue climbed 17 per cent year-on-year to $104.1 million, compared with $89.1 million recorded during the same period last year. Savannah also made significant progress in strengthening its financial position, reducing trade receivables by 22 per cent to $395.2 million from $507.2 million at the end of 2025.

One of the strongest indicators of operational efficiency was a sharp rise in cash collections, which surged 48 per cent to $183.5 million during the four-month period ended April 30, underscoring the company’s focus on cash discipline and receivables management.

Cash balances improved to $64.7 million from $42.8 million at the end of December 2025, while net debt declined to $641.7 million from $658.6 million, reflecting continued efforts to strengthen liquidity and reduce leverage.

To further enhance financial flexibility, Savannah secured a new £32 million unsecured loan facility from NIPCO Plc, its largest shareholder. The facility comprises an immediate £20 million tranche and an additional £12 million available from July 1. It carries a 4.5 per cent annual interest rate over a 36-month term.

The company said the facility includes an option to settle the loan through the issuance of shares at 8 pence per share, although neither party is obligated to exercise the conversion feature.

Beyond its financial performance, Savannah reported steady progress across its portfolio of oil, gas and renewable energy projects in Africa.

In Nigeria, drilling and completion activities at the Uquo North-East well have been completed, with flowline installation nearing completion. The company expects first gas from the well in early July 2026, supporting higher gas production in the second half of the year. Preparatory work is also advancing at the Uquo South exploration location ahead of the next drilling campaign.

The company noted that group average gross daily production for the period stood at 15,700 barrels of oil equivalent per day, compared with 18,800 boepd in full-year 2025, reflecting temporary constraints in gas production due to drilling activities and customer demand patterns.

Outside Nigeria, Savannah continued to make progress on strategic power projects. In Niger, the Parc Eolien de la Tarka wind project has been designated a priority project by the government, while discussions continue regarding the future development of the asset and the potential resumption of oil operations.

In Cameroon, negotiations with the government are at an advanced stage on a Joint Development Agreement for the proposed 95MW Bini a Warak hybrid hydroelectric and solar power project, a key component of Savannah’s renewable energy growth strategy.

Commenting on the performance, Chief Executive Officer Andrew Knott said the company had delivered strong results across its core strategic priorities, citing substantial improvements in revenue, cash collections and receivables management.

He noted that Savannah continues to advance major growth projects, including new gas wells at Uquo and production expansion activities at Stubb Creek, while simultaneously progressing its wind, solar and hydropower portfolio and evaluating additional acquisition opportunities in both the hydrocarbons and power sectors.

“The combination of strong operational delivery, improved cash generation and enhanced financial flexibility positions Savannah well to sustain growth and create long-term value through 2026 and beyond,” Knott said.