Savannah Energy Reports Nine-Month Financial and Operational Growth, Welcomes NIPCO as Strategic Nigerian Investor

Naija247news – London | October 23, 2025:

Savannah Energy PLC, the British independent energy company driving landmark African projects, has announced a robust operational and financial performance for the nine months ended 30 September 2025, with strong revenue growth, rising cash reserves, and a major new Nigerian investor joining its shareholder base.

Revenue Up 9%, Cash Collections Rise 5%

The company reported total revenues of US$185.2 million, representing a 9% increase from the US$169.3 million earned during the same period in 2024.

Cash collections also rose 5% to US$241.6 million, reflecting improved efficiency in Nigeria’s gas payments and energy sales.

Savannah’s cash balance surged to US$101.8 million as of 30 September 2025, up from US$32.6 million at year-end 2024 — marking a threefold increase in liquidity.

Meanwhile, net debt dropped to US$629.9 million (from US$636.9 million in December 2024), while trade receivables improved by 9% to US$493.3 million, signaling stronger customer collections and balance sheet resilience.

NIPCO Joins as Strategic Nigerian Investor

A major highlight of Savannah’s update was the announcement of NIPCO Plc, a leading Nigerian energy conglomerate, as a new strategic shareholder.

NIPCO plans to invest £28.7 million in Savannah Energy through the acquisition of 249 million ordinary shares, amounting to an expected 19.4% ownership stake.

According to the company, this partnership will deepen local participation in Savannah’s operations and strengthen its presence across Nigeria’s oil, gas, and power markets.

Fundraising and Capital Expansion

Savannah also confirmed plans to raise £11.3 million through the subscription of 161 million new shares at 7 pence each. This follows the imminent completion of a previous £9.7 million fundraising from March 2025.

CEO Andrew Knott also reaffirmed his personal commitment to the company’s growth, increasing his own stake to approximately 12.6%, a move seen as a show of confidence in Savannah’s future.

Debt Facility Expansion with Nigerian Banks

In a significant financial restructuring move, Savannah signed agreements with a consortium of five Nigerian banks to increase its Accugas debt facility from ₦340 billion (US$222 million) to ₦772 billion (about US$500 million).

The expanded facility is expected to fully repay the company’s U.S. dollar facility by year-end 2025, reducing foreign currency exposure and stabilizing future operations.

Additionally, its East African subsidiary, Savannah Energy EA, secured a US$37.4 million debt facility to finance the planned 50.1% acquisition of Klinchenberg BV, which holds stakes in three major hydropower projects.

Operational Update: Nigeria, Niger, and East Africa

Savannah’s Nigerian operations averaged 20.1 Kboepd in gross production during the period, with 85% from gas output. The Stubb Creek expansion project has already raised output to 3,300 barrels per day, 24% higher than last year.

At the Uquo Central Processing Facility, a new gas compression system was completed 10% below its US$45 million budget, allowing Savannah to maximize gas production from existing wells.

Savannah also extended its gas supply contract with Central Horizon Gas Company Limited (CHGC) to December 2026, securing up to 10 MMscfpd in long-term offtake volumes.

In Niger, the company is preparing to commence a four-well testing program and possible renewed exploration in 2026/27, pending government approvals.

Across East Africa, Savannah is advancing its planned acquisition of hydropower assets in Uganda, Burundi, the DRC, Malawi, and Rwanda — including the 255 MW Bujagali Power Plant, a flagship renewable project with a proven 13-year track record.

Power Division and Renewables Expansion

In the renewable energy sector, Savannah continues to progress two major African projects:

• 250 MW Parc Eolien de la Tarka wind farm in Niger, and

• 95 MW Bini a Warak hybrid hydro-solar project in Cameroon.

Negotiations with the Cameroonian government are at an advanced stage for a Joint Development Agreement, while the Niger wind project remains on the government’s priority energy list.

The company is also exploring new M&A opportunities across Africa, with active discussions to acquire renewable portfolios exceeding 100 MW in capacity.

CEO Andrew Knott on Growth and Future Prospects

Commenting on the update, Andrew Knott, CEO of Savannah Energy, said:

“2025 has been a year of strong progress against our core priorities. We have increased cash collections, advanced debt refinancing, and expanded operations in both hydrocarbons and renewables.

We are particularly proud to welcome NIPCO Plc as a new investor — a partnership that reflects our shared vision of an energy-independent Africa.”

Knott added that the company is considering share buybacks or tender offers if cash collections and arbitral recoveries improve, signaling confidence in Savannah’s financial health and shareholder returns.

Outlook: A Strong African Growth Story

With new debt facilities, improved receivables, and strategic expansion into hydropower and wind energy, Savannah Energy is positioning itself as a leading integrated African energy player.

As the company continues to balance oil, gas, and renewables, its long-term strategy aligns with Africa’s broader drive toward energy security, diversification, and sustainability.

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Reporting by Joshua Chinonye in Lagos, Nigeria.