Savannah Energy Plc has released its unaudited operational and financial update for the first seven months of 2025, highlighting stronger revenues, improved cash flow, and a renewed focus on gas expansion projects in Nigeria.
The British independent energy company, which has operations across Africa, disclosed that its gross production in Nigeria averaged 21,000 barrels of oil equivalent per day (Kboepd) in the review period. This was lower than the 24,300 Kboepd achieved in the same period of 2024.
According to the update, gas remained the dominant contributor to output, accounting for 86 percent of total production, compared with 89 percent in the previous year.
Despite the lower production volumes, Savannah reported a four percent increase in revenues, with total earnings of $147.3 million against $142.1 million recorded in the first seven months of 2024.
The company attributed the revenue growth to stronger financial discipline and a significant improvement in collections. Cash collections rose 37 percent year-on-year, reaching $219.2 million compared to $160 million in the corresponding period of 2024.
Trade receivables also recorded improvement, dropping by 12 percent to $476.4 million as of July 31, 2025, from $538.9 million at year-end 2024. Management described this as a sign of strengthened customer payments and operational efficiency.
Cash reserves rose substantially during the period, standing at $93.7 million as of July 31, compared with $32.6 million at the end of 2024. Net debt fell to $591.9 million from $636.9 million, while excluding debt from the SIPEC acquisition further reduced it to $549.5 million.
On the operational front, Savannah confirmed it had signed a turnkey drilling contract for up to two wells on the Uquo Field in Nigeria. The Uquo North-East development well is scheduled to begin drilling in January 2026, with first gas output expected by the end of the first quarter.
The Uquo NE project is forecast to deliver as much as 80 million standard cubic feet of gas per day (MMscf/d). It will leverage the newly commissioned Uquo compression project, which was completed 10 percent below budget.
The company explained that the compression project will enable it to maximise production from both existing and future wells, positioning Savannah as a key gas supplier in Nigeria’s domestic market.
Savannah’s Stubb Creek oilfield also recorded progress, with daily production of 3,200 barrels per day — up 20 percent compared to 2024 levels. The company said the ongoing expansion programme at the asset will deliver further output growth.
The energy firm added that refinancing of its dollar-denominated debt through its Accugas subsidiary was nearing completion. Negotiations with a consortium of five Nigerian banks are at an advanced stage to increase local financing to ₦772 billion (about $503 million).
The refinancing deal, once completed, will allow Accugas to repay about $200 million of its remaining dollar-denominated debt in the second half of 2025, reducing foreign exchange exposure.
Meanwhile, Savannah continues to expand its renewable and power business. Its pipeline of projects includes up to 696 megawatts of wind, solar, and hydroelectric capacity across West and Central Africa.
Chief Executive Officer, Andrew Knott, described 2025 as “an exciting year for Savannah,” citing progress in cash collections, asset performance, and growth projects. He assured stakeholders that the company remains focused on delivering its nine priority projects, including boosting Uquo gas production, expanding Stubb Creek, and advancing renewable projects in Niger and Cameroon.
