By|| Goodluck E. Adubazi || Abuja
Savannah Energy Plc has reported a strong improvement in cash collections from its Nigerian operations, posting a more than 12 per cent year-on-year increase in 2025 as the company advanced major gas, oil and power projects across Africa.
In its unaudited operational and financial update for the 2025 financial year, the British independent energy company said cash collections in Nigeria rose to US$278.0 million, up from US$248.5 million in 2024.
The momentum has continued into 2026, with January cash collections exceeding US$64.4 million, compared with US$20.4 million in the same month two years earlier.
Savannah’s average gross production in Nigeria stood at 18.8 thousand barrels of oil equivalent per day (Kboepd) in 2025, with gas accounting for 83 per cent of output. Following the completion of its SIPEC acquisition in March 2025, the company launched an 18-month expansion programme at the Stubb Creek oil field, lifting average gross daily production there to 3.0 Kbopd, about 13 per cent higher than in 2024.
Total revenues for the year came in at US$235.0 million, down from US$258.9 million the previous year.
However, cash balances improved to US$39.5 million as at 31 December 2025, compared with US$32.6 million a year earlier. Net debt rose slightly to US$655.9 million, while gross debt stood at US$698.4 million, with only 6 per cent recourse to the parent company.
Trade receivables declined to US$507.2 million, representing a 6 per cent improvement on the prior year, reflecting stronger collections from customers.
Savannah also reported significant progress in refinancing its debt facilities. Following the expansion of the Accugas facility to approximately NGN772 billion, the remaining balance under its US dollar facility—about US$2 million—was fully repaid in early 2026.
On the operational front, the company said construction at the Uquo NE development well is nearing completion, with drilling mobilisation expected in the coming weeks and first gas targeted by the end of the second quarter of 2026. Preparatory work has also begun at the Uquo South exploration well.
A newly installed compression system at the Uquo Central Processing Facility, delivered safely and around 10 per cent under its US$45 million budget, is expected to unlock additional gas production from both existing and future wells. Savannah also extended its gas supply agreement with Central Horizon Gas Company Limited through December 2026 for volumes of up to 10 million standard cubic feet per day.
Beyond hydrocarbons, Savannah is accelerating its push into power generation.
The company is targeting completion by the first half of 2026 of its proposed acquisition of indirect interests in three East African hydropower projects, including the 255-megawatt Bujagali power plant. If completed, the deal would mark Savannah’s entry into five new countries: Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda.
It continues to advance other power projects, including the proposed 250 MW Parc Eolien de la Tarka wind farm in Niger and the 95 MW Bini a Warak hybrid hydro-solar project in Cameroon. In Niger, Savannah said it is considering a return to exploration activity in the R1234 contract area in 2026 or 2027, subject to agreement with the government.
Commenting on the results, Chief Executive Officer Andrew Knott described 2025 as “a year of execution,” citing improved cash collections, production growth following the SIPEC acquisition and progress across gas, oil and power portfolios.
“Overall, this progress provides a strong platform for continued delivery in 2026,” Knott said, adding that the company expects to conclude key arbitration proceedings in the first half of the year.
With rising cash inflows, advancing gas infrastructure and an expanding footprint in African power markets, Savannah Energy enters 2026 positioning itself for further growth despite ongoing debt and market challenges.
