Connect with us

Finance

Savannah Energy Announces Q1 2023 Financial and Operational Update with 29% Increase on Nigerian Operations

Published

on

Savannah Energy

Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa is pleased to provide a financial and operational update for Q1 2023.

The Q1 2023 Unaudited Financial Results showed that the company posted a total revenue of US$147.6m, comprising of US$71.0m from its Nigerian operations (up by 29% compared to Q1 2022 total revenue of US$55.0m), and Chad upstream revenues of US$76.6m. The report shows the Group’s cash balance stood at US$217.3m, with a net debt of US$412.2m.

In terms of operations, its average gross daily production for the quarter stood at 54.9 Kboepd, compared to average gross daily production of 21.6 Kboepd in Q1 2022. Excluding Chad production, Q1 2023 average gross daily production on a like-for-like basis was 25.9 Kboepd, a 20% increase compared to Q1 2022. Out of the total average gross daily production of 54.9 Kboepd, 43% was gas, including a 22% increase in production from the Uquo gas field compared to the same period last year, from 116.4 MMscfpd (19.4 Kboepd) to 142.2 MMscfpd (23.7 Kboepd).

Andrew Knott, CEO of Savannah Energy, said:

This morning’s update clearly demonstrates the strength and potential of our business and the positive impact we are making in our host countries: we are reporting like-for-like1 organic Total Revenues growth of 26% year-on-year (with like-for-like Total Revenues having now doubled since 2017); our oil and renewable energy projects in Niger are now advancing at a rapid pace; and COTCo in Cameroon continues to deliver a strong consistent financial performance. On the new ventures front, we continue to progress our planned acquisition of PETRONAS’ assets in South Sudan and expect to announce a series of new utility-scale renewable power projects over the course of Q2 and Q3 2023.”

Q1 2023 vs Q1 2022 Average Gross Daily Production

 

Uquo Gas

(MMscfpd)

Uquo

Condensate

(Kbopd)

 

Stubb Creek

Oil

(Kbopd)

 

Doba Oil

(Kbopd)

 

Total

 

(Kboepd)

1 January-31 March 2023 142 0.2 2.0 29.1 54.9
% of total production 43% 0.5% 3.5% 53%
1 January-31 March 2022 116 0.2 2.0 NA 21.6
% of total production 22% (3%) (1%)         – 155%

N.B. – Percentages in this table are calculated from exact numbers, the figures above are rounded.

Country Updates

  • Nigeria: During the quarter, Savannah sold gas to seven customers including Calabar Electricity Generation Company Limited, Lafarge Africa PLC, Ibom Power Company Limited, First Independent Power Limited, the Central Horizon Gas Company Limited, TransAfam Power Limited and Notore Chemical Industries PLC. As part of its plans to advance the Company’s ability to maintain and grow its gas production levels over the course of the coming years, Savannah is progressing the US$45 million compression project at the Uquo Central Processing Facility (“CPF”). Following the front-end engineering and the associated order of long lead items, detailed design work commenced in Q1 2023 and is scheduled to be completed in Q4 2023.
  • Cameroon: Savannah acquired an effective 41.06% indirect equity interest in the Cameroon Oil Transportation Company (“COTCo”) from ExxonMobil on 9 December 2022. During Q1 2023, COTCo transported an average of 128.8 Kbopd of crude oil with a total of 11 liftings conducted on behalf of its customers. Each lifting saw the safe and successful transfer of approximately 1 MMbbls of crude oil from the FSO to ocean going vessels by COTCo on behalf of its customers.
  • Niger: Savannah has continued progressing plans for the Early Production Scheme on the approximately 35 MMstb of Gross 2C Resources R3 East oil development. Bottomhole pumps and completion equipment were ordered in Q1 2023, and a work-over rig solution has been identified for a well test programme, which the Company expects to carry out in Q4 2023. Following the well test result, Savannah expects to issue a comprehensive field development plan with first oil targeted in 2024 and production expected to ramp up to a plateau rate of approximately 5 Kbopd for the initial development. The crude is expected to be evacuated via the new Niger-Benin export pipeline, which is currently under construction, reported to be 75% completed and estimated to be fully operational in Q4 2023.

Savannah’s up to 250 MW Parc Eolien de la Tarka wind farm project in Niger, which has the potential to increase Niger’s on-grid electricity supply by over 40%, has made significant progress. All key studies required to achieve project sanction (including wind measurement, environmental and social impact, grid integration, security, cartography, road and aviation studies) have either been completed or are in progress. The preliminary on-site wind speed data measurements having proven to be highly encouraging and we expect project sanction in 2024.

  • Chad: As previously announced on 24 March 2023, the President of the Republic of Chad issued a Decree on 23 March 2023 nationalising Savannah Chad Inc’s (“SCI”) (formerly Esso Exploration and Production Chad Inc (“EEPCI”)) upstream production assets in Chad; subsequently on 31 March 2023 the Government of Chad passed a law confirming the nationalisation of SCI’s upstream production assets and also providing for the nationalisation of Savannah’s c. 40% interest in Tchad Oil Transportation Company (“TOTCo”), the owner and operator of the Chad section of the ETS.

Such nationalisation does not affect Savannah’s 41.06% indirect equity interest in COTCo. The actions of the Republic of Chad are in direct breach of the upstream conventions to which SCI and the Republic of Chad are, amongst others, party, together with a direct breach of the convention between TOTCo and the Government of Chad. These nationalisations were made notwithstanding the fact that under SCI’s operatorship the historic production decline was immediately reversed, with daily production averaging 29,349 barrels per day since Savannah’s ownership on 9 December 2022, an increase of c.9% as against the equivalent period prior to Savannah taking control of SCI. Savannah had also initiated plans to significantly increase production further through an active investment programme.

Disputes under the upstream conventions are subject to the jurisdiction of an ICC arbitral tribunal, seated in Paris. The Company has commenced ICC arbitral proceedings against the Government of Chad to seek full recompense for the loss that it has and will suffer as a result of the nationalisation of SCI’s assets.

  • South Sudan: Further to the Company’s 12 December 2022 announcement, the Company continues to advance the various workstreams required to complete the reverse takeover of PETRONAS International Corporation Limited’s(“PETRONAS”) entire oil and gas business in South Sudan, and intends to publish an AIM Admission Document in H1 2023. Further updates will be provided as and when appropriate.

Continue Reading
Comments

Finance

Fidelity Bank MD, Nneka Onyeali-Ikpe Gets National Award

Chief Executive Officer of Fidelity Bank PLC, Nneka Onyeali-Ikpe, has been listed amongst the recipients of the 2023 national awards.

Published

on

Nneka Onyeali Ikpe, Fidelity Bank CEO - Investors King

Chief Executive Officer of Fidelity Bank PLC, Nneka Onyeali-Ikpe, has been listed amongst the recipients of the 2023 national awards.

According to the 2023 national awards list released by the Federal Government last weekend, Onyeali-Ikpe would be conferred with the award of the Officer of the Order of the Niger, OON.

 The list also includes prominent names such as Emeka Anyaoku, First lady, Oluremi Tinubu, Co-Founder of Tony Elumelu Foundation, Dr Awele Elumelu; President of Transcorp Group, Dr Owen Omogiafo among others.

 Also, former Governor of Osun, Bisi Akande; Olusegun Osoba; Mamman Daura and Central Bank Governor, Godwin Emefiele, among others received Commander of the Order of the Federal Republic.

The OON award comes to join a list of recognitions Onyeali-Ikpe has received recently. It would be recalled that she bagged the awards of the Banker of the Year 2022 at the Champion Newspapers’ Awards of the Year 2022 earlier in May, the Banker of the Year 2022 at the 14th Leadership Annual Conference and Awards in January 2023 as well as the Best Banking CEO Nigeria 2023 in the 2023 Global Banking & Finance Awards in April 2023. She was also recognized as one of the top 10 female finalists in the Africa.com Definitive List of Women Chief Executive Officers (CEOs).

Onyeali-Ikpe joined Fidelity Bank as an Executive Director in 2015 and was appointed Managing Director/CEO of the Bank in January 2021.

Following her appointment, Onyeali-Ikpe became the first female MD/CEO in the history of the bank and one out of six other female CEOs in the industry.

Under Onyeali-Ikpe’s watch, Fidelity Bank grew its PBT from N25.22bilion in 2021 to N53.68billion in 2022. Furthermore, she guided the bank to obtain the approval of the Central Bank of Nigeria to expand its operations to the United Kingdom.

Continue Reading

Finance

Lagos Govt, First Bank Partner to Boost Healthcare Delivery in Ije-Ododo Community

In a bid to boost healthcare delivery to thousands of residents, the Lagos State Government has built and unveiled a new Primary Healthcare Centre (PHC) in Ije-Ododo Community, Iba Local Council Development Area (LCDA), under the Ojo Council Area of the state.

Published

on

FirstBank

In a bid to boost healthcare delivery to thousands of residents, the Lagos State Government has built and unveiled a new Primary Healthcare Centre (PHC) in Ije-Ododo Community, Iba Local Council Development Area (LCDA), under the Ojo Council Area of the state.

The facility, which has been under construction since 2021 in partnership with First Bank of Nigeria Limited, was unveiled in the community in an opening ceremony attended by the Lagos State Governor, Babajide Olusola Sanwo-Olu, representatives of the state government, the state Primary Health Care Board, community leaders, as well as traditional rulers of Iba, Ije-Ododo and Ijagemo, among others.

In his welcome address, the governor, who was represented by Secretary to the State Government (SSG), Mrs. Folashade Sherifat Jaji, said the opening of the health facility under the SSG’s One Community At a Time (OCAAT) initiative, formed part of activities to herald the inauguration of his second term in office on Monday, May 29, 2023.

Maintaining that the attention being paid to the healthcare sector was deliberate to ensure a healthier populace, he said the state government under his watch would deploy more resources to the health sector for easier access to health services, especially in underserved communities.

He enjoined members of the community to take full advantage of the health benefits that will be provided in the facility and charged them to take ownership and protect the assets and the facility at all times.

Speaking, Permanent Secretary, Primary Healthcare Board, Dr. Ibrahim Mustapha, commended First Bank of Nigeria Limited and the contractor for completing the project within the stipulated time frame, but also requested more assistance to make the facility functional by providing equipment and other necessary medical gadgets.

On his part, Chief Executive Officer of FirstBank, Dr. Adesola Adeduntan, who was represented by Mr. Seyi Oyefeso, expressed satisfaction at the successful completion of the project, adding that it was gratifying to know that no fewer than 10,000 residents of Ije-Ododo and neighbouring communities will have access to primary healthcare services in the facility.

He said as a responsible corporate social organisation, the bank’s intervention in the primary healthcare sector aligned with its Corporate Social Responsibility (CSR) approach anchored on citizenship, impact management, strategic education, as well as the health and welfare of the immediate and remote communities of Lagos State and other parts of the country.

In his words: “The completion and opening of the primary healthcare centre is to ensure that Ije-Ododo community will become healthier and wealthier since health is wealth.”

In his goodwill message, the Baale of Ije-Ododo, Dr. Abu Jelili Ododo, who spoke in company of the Oba of Iba and Baale of Ijagemo, applauded Governor Sanwo-Olu for the timely completion of the healthcare centre and appealed for the construction of the Ijegun-Ije-Ododo-Abule-Ado road to link the Badagry Expressway, adding that it was high time the Ije-Ododo Community was provided with a motorable road to ease the sufferings of residents.

Responding to the request for the road, Jaji assured that the Lagos State government under Sanwo-Olu was poised to build the road but that the project suffered some setback due to agitations by some members of the community over the location of the project, adding however, that as soon as the governor settles down for his second tenure, construction work will begin on the road.

Continue Reading

Finance

Finance and Insurance Sector Grows by 21.37% in Q1

The Finance and Insurance Sector grew by 21.37% in the first quarter of 2023, according to the latest report from the National Bureau of Statistics (NBS).

Published

on

insurance

The Finance and Insurance Sector grew by 21.37% in the first quarter of 2023, according to the latest report from the National Bureau of Statistics (NBS).

The report shows that the figure is lower by 1.86% points from the rate recorded in the 2022 first quarter and higher by 9.76% points from the rate recorded in the preceding quarter. Quarter-on-quarter growth in real terms, however, stood at 14.20%.

The contribution of Finance and Insurance to real GDP totaled 5.35%, higher than the contribution of 4.51% recorded in the first quarter of 2022 by 0.84% points, and higher than 3.95% recorded in Q4 2022 by 1.40% points.

Notably, the Finance and Insurance Sector consists of two subsectors, Financial Institutions and Insurance, in which the former accounted for 91.75% and the latter 8.25% of the sector respectively in real terms in Q1 2023.

The sector grew at 22.37% in nominal terms (year-on-year), with the growth rate of Financial Institutions at 25.99% and -7.25% growth rate recorded for Insurance.

The total rate was 0.21% points lower than the previous quarter and 9.91% points lower than Q1 2022. Growth from one quarter to the next was 12.55%. The sector’s contribution to the nominal GDP increased to 4.11% in Q1 2023 from 3.80% the year prior and 3.30% the quarter before, representing an increase of both percentage points.

According to the GDP overview, Nigeria’s Gross Domestic Product (GDP) increased in real terms by 2.31% (year over year) in the first quarter of 2023. This growth rate decreased from the 3.11% first quarter of 2022 and the 3.52% fourth quarter of 2022 records.

The detrimental consequences of the cash shortage faced throughout the quarter are blamed for the decline in growth. The Services sector, which had growth of 4.35% and contributed 57.29% to the total GDP, was the primary driver of the GDP’s performance in the first quarter of 2023.

Agriculture experienced growth of -0.90%, which was less than the 3.16% growth seen in the first quarter of 2022. Agriculture and the industry sectors had less contribution to the overall GDP in the quarter under review compared to the first quarter of 2022, despite the industrial sector’s growth improving to 0.31% relative to – 6.81% reported in the first quarter of 2022.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending