Business
2020 Half Year Results
2020 Half Year Results.
About this update from Savannah Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5975A\n Savannah Energy Plc\n 30 September 2020\n \n \n \n \n 30 September 2020\n Savannah Energy PLC\n (\"Savannah\" or \"the Company\")\n \n \n 2020 Half Year Results, Trading Update and Outlook for the Year\n \n \n Savannah Energy PLC, the African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, is pleased to announce its unaudited interim results for the six months ended 30 June 2020 together with a trading update up to\n \n 31 August 2020 \n and outlook for the FY 2020. \n \n \n \n \n \n \n Andrew Knott, CEO of Savannah Energy, said:\n \n \n \n \n \n \n \n \n \n \"I believe that our first half results clearly demonstrate the transformation Savannah has undergone to become a cash generative business, benefitting from a long-dated, gas-biased revenue stream with no meaningful oil price exposure. I am pleased that we are able to reiterate our core FY 2020 Total Revenues (US$200m+) and cost guidance (US$68.0 - US$72.0m) today, while also reporting cash collections in the period to end of August of US$133.1m. Over 94% of our forward revenue guidance is derived from three gas sales agreements with a weighted average contracted life of 15 years.\n \n \n \n \n \n As a company we are extremely cognisant of the challenging macro-economic backdrop and the critical role our projects play in our countries of operation. While we believe our business is strongly positioned at this time, we fully understand the importance of working in partnership with our project stakeholders to ensure \"win-win\" outcomes as we continue to develop our business. In this regard we continue to see strong growth potential in both of our core business units, with gas sales to new customers expected in Nigeria and new oil sales from the R3 East project in Niger following the installation of an Early Production System (\"EPS\") which is expected to commence by the end of FY 2021.\"\n \n \n \n \n \n Key Highlights\n \n \n · \n Total cash collections from the Nigerian Assets in the year-to-date period ended 31 August 2020 were US$133.1m (year-to-date period ended 31 August 2019: US$103.8m);\n \n \n · \n Group cash balance of US$84.7m[1] and net debt of US$426.8m as at 31 August 2020;\n \n \n · \n We rei...