Savannah Energy revenue rises 10% to $160.6m as Nigeria cash...

Savannah Energy Plc increased revenue 10 per cent to $160.6 million in the first seven months of 2026, while cash collections from its Nigerian operations rose 13 per cent to $247.9 million, strengthening the energy company’s liquidity position despite lower group production.

The British independent energy company, in its operational and financial update for the seven months ended July 31, said revenue increased from $146.0 million in the corresponding period of 2025.

Cash collections from Nigeria, one of the strongest indicators of the group’s operating performance, rose from $219.2 million to $247.9 million, representing an increase of $28.7 million.

The company’s cash balance also strengthened significantly, rising to $62.0 million as of July 31, from $42.7 million at the end of 2025.

At the same time, net debt increased moderately to $672.0 million, from $658.8 million at December 31, 2025.

Savannah’s trade receivables, however, declined sharply by 22 per cent to $394.6 million, from $508.5 million at year-end, pointing to improved collections and a reduction in outstanding customer balances.

The company’s group average gross production stood at 16.3 thousand barrels of oil equivalent per day (Kboepd) in the first seven months, down from 18.8 Kboepd in the corresponding period of 2025.

Savannah expects production to accelerate in the second half of the year following the commencement of production from its Uquo 13 well.

The company said average gross daily production is expected to exceed 20 Kboepd over the remaining five months of 2026, with full-year average production projected at between 18 Kboepd and 20 Kboepd.

At Stubb Creek, Savannah’s production expansion programme has already delivered a significant improvement.

Following completion of the SIPEC acquisition in March 2025, average gross production at the asset increased 29 per cent year-on-year to 3.7 Kbopd in the first seven months of 2026, from 2.8 Kbopd in the corresponding period.

Production exceeded 5.0 Kbopd in July, pointing to further potential from the field.

The company also said drilling and completion of the Uquo 13 well had been completed, with the well tied back to the Uquo Central Processing Facility and first gas achieved in July.

The well was successfully tested at approximately 50 million standard cubic feet per day (MMscfd) and is now producing.

Savannah has also commenced drilling activities on the Uquo South exploration well, which was spudded in early August.

Gas has been confirmed in most of the targeted reservoirs through pressure measurements, fluid sampling and logging, although the company said the discovery would be fully evaluated after completion and testing.

The operational gains come as Savannah continues efforts to strengthen its balance sheet and refinance its debt facilities.

In Niger, the company remains engaged with the government over the R1234 PSC and the framework for resuming activity, while reserving its contractual rights.

The company said operations on the affected assets would resume only after reaching a satisfactory agreement with the government.

Savannah is also pursuing arbitration proceedings relating to its interests in Chad and expects the relevant proceedings involving its subsidiaries to be concluded in the second half of 2026, while another set of proceedings is expected to conclude in the first half of 2027.

Chief Executive Officer of Savannah Energy, Andrew Knott, said the company had made significant progress across its business during the period, particularly in Nigeria, where cash collections continued to improve.

He said the company was also advancing production expansion at Stubb Creek, developing its Uquo gas assets and pursuing additional opportunities across hydrocarbons and power.

For investors, the latest numbers present a mixed but improving picture: revenue and Nigerian cash collections are rising, receivables are falling, and production is expected to accelerate, although net debt remains elevated and group output is still below last year’s level.

The key catalyst for the second half will be whether higher production from Uquo and Stubb Creek can translate into stronger revenue and cash generation while the company continues to manage its debt and international asset disputes.