2025: Savanah Energy increased cash collection by 12%

Agency Report

Savannah Energy PLC, the British independent energy company has announced a 12 per cent increase in cash collection in Nigeria during its 2025 financial year.

The company focused around the delivery of Projects that Matter, has released its financial and operational update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.

The update shows that its gross production in Nigeria averaged 18.8 Kboepd for FY 2025, of which 83 per cent was gas (FY 2024: 88 per cent). Following the completion of the SIPEC Acquisition in March 2025, it had commenced an 18-month expansion programme that saw it Stubb Creek average gross daily production increase to 3.0 Kbopd in 2025, approximately 13% above the 2024 average.

The report also shows that its cash collections in Nigeria increased by over 12 per cent to $278.0 million, compared to the previous year’s $248.5 million, with the trend continuing into 2026 with cash collections during January 2026 at over $64.4 million, compared to $20.4 million in January 2024.

According to the report, Savannah’s Total Revenues for FY 2025 stood at US$235.0 million, compared to $258.9 million in FY 2024. As at 31 December 2025, its cash balances stood at $39.5 million, compared to $32.6 million in FY 2024, with a net debt $655.9 million, compared to $636.9 million as at 31 December 2024. It also reported a Gross debt US$698.4 million as at 31 December 2025, of which only US$39.0 million (six per cent) was recourse to the Company, with the balance sitting within subsidiary companies on a non-recourse basis. Its Trade Receivables balance as at 31 December 2025 stood at $507.2 million, a 6% improvement on year-end 2024’s US$538.9 million.

Savannah also reported that it has made significant progress in refinancing its debt facilities. It reports that following the previously announced increase in the Accugas debt facility from NGN340 billion to up to approximately NGN772 billion as at 31 December 2025, there was a remaining principal balance under the US$ Facility of approximately US$2 million, which has been repaid in early 2026.

Savannah also provided new updates on its Uquo NE development well, the Uquo South exploration well, and the new compression system at the Uquo Central Processing Facility (“CPF”). It reports that site construction on the Uquo NE development well is expected to be completed this month, with the rig ready for deployment, and mobilisation scheduled over the next few weeks, with first gas from the facility targeted by the end of Q2 2026. Well site preparation has also commenced on the Uquo South exploration well.

According to the company, the newly completed and fully commissioned compression system at the Uquo Central Processing Facility which was delivered safely and approximately 10% under the original US$45 million budget, will enable it to maximise production from its existing and future gas wells. It also announced signed a gas contract extension agreement with the Central Horizon Gas Company Limited to end December 2026 for up to 10 MMscfpd.

On the renewable energy front, Savannah, which had in 2025 repositioned its power sector business model to pursue operating asset opportunities in both the thermal and renewable energy spaces alongside interests in large scale renewable energy development projects, said it has set itself the target of completing its proposed acquisition of indirect interests in three East African hydropower projects by H1 2026.

The assets include the 255 MW Bujagali power plant, with a 13-year operating and payment track record, and two advanced-stage development projects, marking Savannah’s potential for entry into five new countries – Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda.

It is also continuing to progress its existing priority Power Division projects, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.

In Niger, its subsidiary is considering commencing a four-well testing programme and/or a return to exploration activity in the R1234 PSC contract area in 2026/27, subject to a satisfactory agreement being reached with the country’s government.

Andrew Knott, CEO of Savannah Energy, said: “2025 was a year of execution for Savannah with good progress delivered across the nine focus areas we set out at the start of the year. In Nigeria, we increased our rate of cash collections year-on-year by 12%, a trend which we hope to continue into 2026, and have made significant progress in refinancing our debt facilities.

In our Hydrocarbons Division, the completion of the SIPEC acquisition in March enabled us to commence an expansion programme at Stubb Creek, increasing 2025 production materially above 2024 levels. At Uquo we delivered the new compression system under budget and advanced site construction ahead of the planned commencement of drilling of the new Uquo NE well. During the year, we also announced a 21% 2P Reserves upgrade at the Uquo gas field and a 29% upgrade to Stubb Creek oil field 2P Reserves.

In Niger, we remain actively engaged with the Government on future activity, with the R3 East development plan significantly enhanced during the year.

In the power sector, we repositioned our business model and advanced both operating and development opportunities, including the proposed acquisition of interests in three East African hydropower projects, which is targeted for completion in H1 this year. We have also continued to progress on our wind, solar and hydro portfolio. Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several other opportunities under active discussion.

We also continued to progress our arbitration claims, with the Savannah Chad Inc (SCI) and Savannah Midstream Investment Limited (SMIL) proceedings currently expected to be concluded in the first half of 2026. Overall, this progress provides a strong platform for continued delivery in 2026.”