Savannah releases full-year 2021 annual results

• targets completion of entry into Chad and Cameroon in Q3 2022 and further hydrocarbon acquisitions

Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, is pleased to announce its 2021 Annual Report and Audited Accounts.

The Full Year total revenues increased to US$230.5m which was +7% higher than FY 2020 total revenues of US$215.9m. This is ahead of the Company’s previously issued FY 2021 guidance of ’Total Revenues of greater than US$205m’.

Average realised gas price of US$4.19/Mscf was +6% higher than the average realised gas price of US$3.96/Mscf in 2020. Similarly, average realised liquids price in 2021 was US$69.9/bbl, a +51% increase compared to the 2020 average realised liquids price of US$46.2/bbl.

Total cash collections from the Company’ Nigerian assets increased from US$167.4m recorded in FY 2020 to US$208.2m. This represents an increase of +24%.

The Group cash balances of US$154.3m as at 31 December 2021 was higher than the Group cash balances of US$106.0m recorded in FY 2020. This is an increase of +46%.

Other highlights include:

• Adjusted EBITDA of US$175.0m (+7% on FY 2020 Adjusted EBITDA of US$163.2m2);
• Adjusted EBITDA margin remained broadly unchanged at 76%;
• Group operating expenses plus administrative expenses[3] of US$49.9m (FY 2021 initial guidance of US$55-65m);
• Group Depreciation, Depletion and Amortisation of US$36.2m (FY 2021 initial guidance of US$38.3m based on the actual produced volumes);
• Capital Expenditure for the year of US$32.5m (FY 2021 initial guidance of up to US$65m);
• Group net debt of US$370.0m as at 31 December 2021 (-9% versus FY 2020 year-end Group net debt of US$408.7m);
• Leverage[5] was 2.1x, (20% improvement on 2020 leverage of 2.5x), and an interest cover ratio[6] of 2.8x (FY 2020 ratio of 2.4x);
• Total Group assets amounted to US$1,349m at year-end (2020: US$1,207m); and
• Successfully announced a proposed placing to raise US$65.8m of equity financing and secured up to US$432m of debt financing for the proposed Chad and Cameroon Asset Acquisitions. The equity financing completed in January 2022.

Andrew Knott, CEO of Savannah Energy, said:

“2021 was a fantastic year for Savannah. Our Total Revenues12 and Adjusted EBITDA2 grew by 7% year-on-year to US$231m and US$175m respectively. We organically increased our Net 2P reserves by 20% to 77.7 MMboe. We announced our potentially transformational acquisition of a large portfolio of upstream and midstream assets in Chad and Cameroon, which upon completion we now expect will more than double our corporate free cashflow. We established a Renewable Energy Division which, post period, has signed agreements for up to 750 MW of large scale greenfield solar and wind projects. We successfully renewed and amalgamated our Niger PSC areas, paving the way for the progression of our intended 35 MMstb R3 East development and a return to exploration activity in the licence areas. Our performance against key industry sustainability metrics relating to HSE performance, carbon intensity, senior management gender diversity and local employee ratios remain industry leading.

Looking forward to the rest of 2022, I am confident in where we are as a business. We expect to deliver on our financial guidance. We expect to complete our entry to Chad and Cameroon during Q3 2022 and to likely announce further hydrocarbon acquisitions. We expect to further grow our Renewable Energy Division, with several new large-scale greenfield opportunities under review and negotiation. We expect to finalise the refinancing of our Nigerian debt and to announce the development and exploration plans for our assets in Niger.

Most of all we will maintain our focus around the delivery of Projects that Matter in Africa. I would like to express my gratitude to all of those who contributed to our success in 2021 – my incredibly dedicated and passionate colleagues, our host governments, communities, local authorities and regulators, our shareholders and lenders, and our customers, suppliers and partners. Thank you all.”