… Strong Cash Collections, New £32m NIPCO Facility Strengthen Growth Outlook
By|Goodluck E.Adubazi, Abuja
Savannah Energy Plc has reported a strong operational and financial performance for the first four months of 2026, posting an 8 per cent increase in daily oil production in Nigeria, a 17 per cent rise in revenues, and a sharp improvement in cash collections as the company advances key energy projects across Africa.
The British independent energy company released the update ahead of its Annual General Meeting (AGM), highlighting significant progress in Nigeria, Cameroon and Niger, alongside strengthened financial flexibility through a new £32 million loan facility from its largest shareholder, NIPCO Plc.
According to the company, average gross daily production at its Stubb Creek field rose to 3.1 thousand barrels of oil per day (Kbopd), up from 2.8 Kbopd recorded during the same period in 2025.
The increase follows the successful completion of the SIPEC acquisition and ongoing production expansion activities at the asset.
Group-wide average gross daily production stood at 15.7 thousand barrels of oil equivalent per day (Kboepd), compared with 18.8 Kboepd in the previous year, reflecting temporary constraints in gas production arising from drilling operations and customer demand patterns.
Financial performance also showed marked improvement. Revenue for the period climbed to US$104.1 million, representing a 17 per cent increase from US$89.1 million recorded in the corresponding period of 2025.
The company’s trade receivables balance fell by 22 per cent to US$395.2 million, down from US$507.2 million at the end of 2025, underscoring efforts to strengthen collections and improve cash management.
Savannah reported cash collections of US$183.5 million during the four-month period, a remarkable 48 per cent increase compared to the same period last year.
Cash balances rose to US$64.7 million from US$42.8 million at the close of 2025, while net debt declined to US$641.7 million from US$658.6 million.
In a move aimed at enhancing liquidity and supporting future growth, Savannah secured a new £32 million unsecured loan facility from NIPCO Plc.
The facility consists of an immediate £20 million tranche and a further £12 million available from July 1, carrying a 4.5 per cent annual interest rate over a 36-month term.
The financing arrangement includes an option for Savannah to repay the loan through the issuance of new shares at 8 pence per share, although neither party is obligated to pursue conversion.
Operationally, the company reported substantial progress at its Uquo gas field in Akwa Ibom State.
Drilling and completion activities at the Uquo North-East well have been completed, while flowline installation and tie-in works are nearing completion. First gas production from the well is targeted for early July 2026 and is expected to contribute to higher gas output in the second half of the year.
Preparations are also advancing at the Uquo South exploration well site, with construction works progressing ahead of planned drilling activities.
Beyond Nigeria, Savannah highlighted growing momentum in its renewable energy portfolio. In Niger, the government has designated the Parc Eolien de la Tarka wind project as a priority national project, while discussions continue regarding broader energy development initiatives.
In Cameroon, negotiations with the government are nearing conclusion on a Joint Development Agreement for the proposed 95-megawatt Bini a Warak hybrid hydroelectric and solar power project, which is expected to establish the framework for further project development.
Commenting on the performance, Savannah Energy Chief Executive Officer, Andrew Knott, said the company continues to deliver on its strategic priorities, citing stronger revenues, improved collections, lower receivables and growing production.
He noted that Savannah remains focused on expanding gas production, advancing renewable energy projects and pursuing value-accretive acquisitions across both hydrocarbons and power sectors.
Knott added that the new financing facility from NIPCO strengthens the company’s financial position and supports its confidence in delivering sustained operational and financial growth through 2026 and beyond.
With production expansion underway, new gas volumes expected in the second half of the year, and renewable projects gathering momentum, Savannah Energy appears poised to maintain its growth trajectory across Africa’s evolving energy landscape.
