said it has made “significant strides” in terms of operational and financial progress in FY19 since acquiring the Nigerian Assets in November 2019.
In results for the year ended 31 December 2019, which include around six weeks of operations in Nigeria, the company posted a pre-tax loss of $105.4m (FY18: $24.6m).
The loss was offset by an overall gain on acquisition of US$10.2m arising from the excess of the fair value of net assets acquired over the fair value of consideration paid, it noted.
The energy firm recognises that its results have been impacted by significant transaction costs in relation to its Nigerian Assets acquisition with exceptional items totalling $75.5m, including a fair value adjustment of $54.7m and transaction expenses of $29.7m.
Savannah reported FY 2019 maiden revenues of $17.8m, comprising $16.9m of gas sales and $0.9m of liquids sale and said it expects revenue to jump to more than $200m in 2020.
Average gross daily production from the Nigerian Assets increased 18% in H1 2020 to an average of 21.3 Kboepd versus 18.1 Kboepd for H1 2019. The group expects to reach an average gross production of 21 to 23 barrels of oil equivalent per day (“Kboepd”) in FY2020.
Shares in Savannah Energy have traded solidly over the past month and opened today at 7.6p.
Cash collection from the Nigerian Assets in 1H 020 increased to $82.1m compared to $55.3m in H1 2019 while the group’s cash balance as at 30 June 2020 totalled $54m.
CEO, Andrew Knott, said 2019 was “a pivotal year” and that the Nigerian Asset acquisition had transformed Savannah into a highly cash flow generative full cycle energy company.
“Since acquiring the Nigerian Assets, we have made significant strides in terms of operational and financial progress, as seen with the strong production figures and robust cash collections in H1 2020, further strengthened our leadership team and stand poised to capitalise on the numerous opportunities that our asset portfolio in Nigeria and Niger presents us with.”
“The countries in which we operate both have enormous potential, and we are proud of the work we have done to date, exemplified by the fact that we are already supplying gas to over 10% of Nigeria's power generation capacity,” said Chairman, Steve Jenkins.
The company remains “optimistic” about the future of business and said it will continue to integrate its Nigerian assets with a focus on group-wide ESG performance going ahead.
Savannah Energy added that it believes its projects in both Nigeria and Niger make “an overwhelmingly positive impact” on the socio-economic development of both countries.
“Our Company has achieved so much since formation seven years ago and I expect this progress to continue in the years to come,” said Knott.
Follow News & Updates from Savannah Energy:
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
(Sharecast News) - London equity markets finished in positive territory on Friday, managing to break above the waterline in late trading after worries about rising Covid-19 cases and further restrictions knocked sentiment earlier in the session.
Find out in this fascinating 25mins interview, what super-smart UK smallcap fund manager Judith MacKenzie (Downing) thinks of today's equity markets, along with discussing her investment process and 5 compelling deep value/GARP stock ideas.
Bahamas Petroleum, the Caribbean and Atlantic margin focused oil and gas company has announced announce that the Stena IceMAX drill rig for the upcoming Perseverance #1 drilling campaign is expected to be on site around the 15 December. This means that Perseverance #1 would be expected to spud prior to Christmas 2020.
Prospex Energy PLC, the AIM quoted investment company, Half Year Report highlights the advancing portfolio of late stage onshore European gas projects that range from exploration through to power generation. Once the Company has achieved first gas at Selva in Italy and the transfer of a 49.9% interest in the El Romeral gas and power project to our Spanish affiliate, the Company assures investors Prospex will be a highly cash flow generative energy investment company.
(Sharecast News) - London stocks edged higher in early trade on Friday as investors mulled over the latest UK borrowing figures, but the FTSE 100 was still on course for heavy weekly losses amid ongoing concerns about the coronavirus and its impact on the economy.