The British independent energy company focused around the delivery of Projects that Matter, Savannah Energy Plc has announced its unaudited half-year results for the six months ended 30 June 2024.

Chief Executive Officer, Savannah Energy, Andrew Knott, said, “I am pleased to report our results for the first six months of 2024, as well as the wider progress we are making developing our business.”

Knott pointed out the key highlights in H1, which included the delivery of US$233m of Total Income1 and the announcement of our planned acquisition of SINOPEC’s upstream assets in Nigeria.

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“Alongside this, we are pleased to report strong progress in the development of our renewable energy business, particularly relating to our planned projects in Niger and Cameroon,” he added.

On the outlook, Knott declared, “Looking forward we expect to make a series of announcements around our entry into further renewable energy projects prior to year-end. We remain unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND renewable energy sectors.”

Biztellers reports that the H1 2024 unaudited results showed a strong financial performance, with the company’s total income increasing by 40% to US$233.4 million, compared to US$167.6 million in H1 2023, which comprises total revenues of US$123.5 million and other operating income of US$109.9 million.

Its operating profit also stood at US$152.3 million, 130% higher than H1 2023 (US$66.2 million), with adjusted EBITDA of US$91.6 million, compared to US$108.2 million in H1 2023. This excludes other operating income which when included shows a 47% increase year-on-year to US$201.5 million, compared to US$137.1 million in H1 2023.

The report also shows that the company’s operating expenses plus administrative expenses came up to US$75 million, and capital expenditure of up to US$50 million.

In terms of operations, its average gross daily production in Nigeria for the period stood at 24.4 Kboepd, representing an increase of 3% compared to FY 2023 (23.6 Kboepd).

The report also shows that company’s renewable energy projects in motion at period-end rose to 696 MW. A strong believer in Africa’s transition to renewable energy, Savannah which aims to become one of the largest renewable energy development companies in Africa over the next two years with a rapidly growing pipeline of solar, wind, and hydro power projects is targeting a portfolio of up to 1 GW+ of renewable energy projects in motion by end 2024 and up to 2 GW+ by end 2026.

Operational Review – Nigeria

During 2024 YTD, Savannah’s subsidiary, Accugas Limited agreed and extended three gas contracts for a total of up to 105 MMscfpd. These include the extension of the agreement with First Independent Power Limited (“FIPL”) in January 2024 for an additional 12-month period, whereby Accugas is supplying FIPL’s FIPL Afam, Eleme and Trans Amadi power stations with up to 65 MMscfpd of gas; a new 24-month agreement signed in July 2024 with Ibom Power Company Limited, owner of the Ibom power station, to supply up to 30 MMscfpd of gas, following the expiration of the previous 10-year agreement; extension of the agreement with Central Horizon Gas Company Limited (“CHGC”) was signed in August 2024 for an additional 12-month period, whereby Accugas is supplying CHGC with up to 10 MMscfpd of gas.

The company also continues to make progress on the US$45 million compression project at the Uquo Central Processing Facility (“CPF”), and project remains on budget and on track to be completed during 2024. The company is also currently working on a proposed further development programme for the Uquo field which is expected to see additional wells drilled in 2025 and 2026.

SIPEC Acquisition

In March 2024, Savannah announced the proposed acquisition (via two separate transactions) of 100% of SIPEC for a total consideration of US$61.5 million.  SIPEC’s principal asset is the 49% non-operated interest in Stubb Creek. A subsidiary of Savannah, Universal Energy Resources Limited, is the 51% owner and operator. The company expects this to be completed in Q4 2024. The transaction consideration is expected to be funded through a new senior debt facility arranged by Standard Bank of South Africa Limited and the existing cash resources of the Company.

As at year end 2023, SIPEC had an estimated 8.1 MMstb of 2P oil reserves and 227 Bscf of 2C Contingent gas resources. Savannah’s Reserve and Resource base is expected to increase by approximately 46 MMboe following completion of the SIPEC Acquisition. SIPEC oil production is estimated at an average of 1.4 Kbopd for 2024. Following completion of the SIPEC Acquisition, Savannah plans to implement a de-bottlenecking programme at the Stubb Creek processing facilities. It is anticipated that within 12 months of completion of the acquisition, this will lead to Stubb Creek gross production increasing by 135% to approximately 4.7 Kbopd. Importantly, the SIPEC Acquisition also secures significant additional feedstock gas available for sale to its Accugas subsidiary, underpinning Savannah’s long-term ambition to be the gas supplier of choice in Nigeria.

The NNPC Ltd/ Seplat Energy Joint Venture (JV) partnership has conducted a medical outreach, providing free eye health services to individuals with visual impairments in Ohaji/Egbema community of Imo State.

This was revealed in a statement in Abuja by the Chief Corporate Communications Officer. NNPC Ltd, Olufemi Soneye.

According to Soneye, through its “Eye Can See” programme, a Corporate Social Responsibility (CSR) initiative, the JV dispensed more than 10,000 reading glasses and successfully performed 639 eye surgeries, including cataract removals, for host community members who otherwise had limited access to such vital medical services.

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The “Eye Can See” programme, which commenced in 2017, has been a beacon of hope in the eastern asset of the NNPC upstream investments, positively impacting over 20,000 people to date.

During the event, Chief Upstream Investment Officer of NNPC’s Upstream Investment Management Services (NUIMS), Bala Wunti, represented by Dr. Obinna Otuu, Manager, JV Asset B emphasized the significance of the initiative to NNPC Ltd’s corporate mission of enriching the lives of Nigerians.

Elaborating on the broader vision behind the programme, Wunti stated that the NNPC Ltd takes pride in being more than just an energy provider.

“We are a partner in progress, dedicated to making sustainable contributions to the communities that support us,” he added.

According to him, the “Eye Can See” initiative reflects “our belief that corporate structures can and should play a vital role in societal development.”

He noted that the programme goes beyond immediate medical care by educating individuals on lifestyle choices to prevent conditions like hypertension and diabetes, which can lead to permanent vision loss.

Expressing his appreciation for the support of the local government, beneficiaries, and NNPC Ltd’s partners, Wunti observed that together with Seplat, the National Oil Company is paving the way for a brighter future where access to essential health services is possible for all.

“This project is not just about restoring vision; it is about giving people hope and the opportunity to lead fulfilling lives. This year’s outreach in Ohaji/Egbema is a testament to the ongoing commitment of NNPC and Seplat to improve the quality of life in their host communities,” he affirmed.

The “Eye Can See” initiative has had a profound impact on the communities it serves. By providing free eye screenings, surgeries, reading glasses, and health education, the programme has transformed lives and restored hope to many who had been suffering from visual impairments.

The NNPC/Seplat JV remains dedicated to contributing meaningfully to Nigeria’s development through initiatives like the “Eye Can See” programme. The partnership is committed to expanding the reach of its CSR programmes, ensuring that even more people across Nigeria can benefit from the life-changing services.

The social impact vehicle of energy conglomerate, Sahara Group, the Sahara Group Foundation (SGF), has unveiled its transformative Extrapreneurship strategy across Africa, Asia, Europe, and the Middle East.

Biztellers reports that the social impact strategy was aimed at driving integrated economic and community empowerment programs through collaborative partnerships and support for innovative as well as scalable business in the focus regions.

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Director, Governance and Sustainability, Sahara Group, Ejiro Gray, said in New York that the SGF had over the years implemented interventions focused on promoting the sustainable development goals, recording over two million beneficiaries across Sahara’s business locations.

According to Gray, the new strategy ensures the Foundation continues to actively drive the attainment of 11 of the 17 SDGs through “inclusive and progressive partnerships”.

“We are excited that with Extrapreneurship we can provide extra impetus to Africa’s march towards bringing sustainable development to African communities working through extrapreneurs, who through the support of Sahara Group Foundation can take their ideas and solutions to greater heights,” she said.

Similarly, Head of Programs at SGF, Chidilim Menakaya, expressed optimism that the EXTRApreneurship Strategy will promote economic growth in local communities through platforms that give entrepreneurs, social innovators, inventors, and small businesses access to honing their craft and scaling their businesses, “one community at a time”.

“Our Extrapreneurship model is designed to help Sahara Group Foundation play a key role as a bridge for economic empowerment and sustainable development by linking beneficiaries to sundry support platforms valued at 100 million USD, ultimately creating an ecosystem of collaborators working towards transforming Africa,” she said.

Menakaya noted that the SGF’s new model aims to prepare the entrepreneurial community for the future of work through the integration of artificial intelligence in the Extrapreneurship framework.

“These community entrepreneurs, or what we call EXTRApreneurs will not only drive forward thinking organizations but also empower ambidextrous individuals who are the backbone of the SME sector, a pivotal force for driving economic growth,” she added.

She revealed that the Extrapreneurship program would identify and support innovators, entrepreneurs, inventors and researchers who have developed proven sustainable products or solutions to everyday problems using locally available resources.

This will be done through financial, advisory and investment support as well as building business hubs within the community leveraging the business niche area of each community.

The SGF, she noted, will continue to drive its recycling initiative, an environmental sustainability and economic empowerment initiative that converts waste to wealth.