Pan-African energy company Savannah Energy has reported a strong operational and financial performance across its Nigerian assets for the four months to April 30, 2026, with cash collections rising 48 per cent year-on-year and revenues climbing 17 per cent — underscoring the growing momentum in a business that spans oil, gas and renewable energy across the continent.
Revenue for the period reached US$104.1 million, up from US$89.1 million in the same period in 2025, while cash collections totalled US$183.5 million — a near doubling from US$89.1 million a year earlier. The company said the improvement reflects a deliberate focus on disciplined cash collections and receivables management, with its trade receivables balance declining by 22 per cent to US$395.2 million from US$507.2 million at year-end 2025.
At its Stubb Creek asset, following the completion of the SIPEC acquisition in March 2025, a production expansion programme delivered an 8 per cent increase in average gross daily output to 3.1 thousand barrels of oil per day, compared with 2.8 thousand barrels per day in the same period last year. Group average gross daily production for the four-month period stood at 15.7 thousand barrels of oil equivalent per day, with gas volumes constrained by ongoing drilling activity and customer demand patterns.
Cash balances improved to US$64.7 million from US$42.8 million at year-end 2025, while net debt declined to US$641.7 million from US$658.6 million over the same period. To further strengthen its financial position, Savannah has entered into a new £32 million unsecured loan facility with NIPCO plc, its largest shareholder, structured in two tranches — £20 million immediately available and £12 million from July 1. The facility carries a 4.5 per cent annual interest rate over a 36-month term, with an option allowing Savannah to repay through share issuance at 8 pence per share.
At the Uquo field, drilling and completion at the Uquo NE well location have concluded, with flowline installation in its final stages and first gas targeted for early July 2026. Site construction at the Uquo South exploration well is progressing, with the site expected to be ready by early June. Both new gas wells are expected to support significantly higher production in the second half of 2026.
Beyond Nigeria, Savannah’s Parc Eolien de la Tarka wind project in Niger has been confirmed as a government priority project. In Cameroon, negotiations for a Joint Development Agreement covering the up to 95 MW Bini a Warak hybrid hydroelectric and solar project are at an advanced stage, expected to supersede a 2023 Memorandum of Agreement.
CEO Andrew Knott said the company’s nine core focus areas set out at the start of 2025 are all delivering progress. “In Nigeria, we have seen a significant improvement in cash collections, with a 48 per cent year-on-year increase in the first four months of the year, alongside a 17 per cent year-on-year increase in revenues and a 22 per cent reduction in our trade receivables balance since year-end 2025,” Knott said. He added that the company continues to pursue value-accretive acquisitions across both hydrocarbons and power, with several opportunities under active discussion.
Source: orientalnewsng.com