Savannah Energy (LSE:SAVE) has reported increased production and improved financial performance for the seven months ended 31 July 2026, supported by progress at its Uquo gas operations and higher oil output from the Stubb Creek field in Nigeria.
At Uquo, the Uquo 13 development well has entered production following successful testing at approximately 50 MMscfd. The company has also made an encouraging gas discovery at the Uquo South exploration well, where completion and evaluation activities are continuing to determine the potential contribution from the discovery.
Savannah has also delivered higher production at Stubb Creek following its acquisition of SIPEC. Average gross daily oil output from the field increased by 29% year-on-year to approximately 3.7 Kbopd during the reporting period, while production exceeded 5.0 Kbopd during July.
The wider Stubb Creek expansion programme is targeting production capacity of up to 4.7 Kbopd. Across the group, Savannah expects average gross daily production to reach between 18 and 20 Kboepd during 2026.
Financial performance also improved over the seven-month period. Cash collections increased by 13% year-on-year to US$247.9 million, while revenue rose by 10% to US$160.6 million.
Trade receivables were reduced by 22% to US$394.6 million, while Savannah’s cash balance increased to US$62.0 million. Net debt, however, edged higher to US$672.0 million, leaving leverage as an important consideration despite the improvement in operating performance and collections.
The company has increased the size of its Stubb Creek reserve-based lending facility to US$130.0 million under improved terms, providing additional financial flexibility for the Nigerian operation. Savannah is also maintaining a rolling oil hedging programme designed to provide greater protection for future cash flows against commodity price volatility.
Elsewhere in its portfolio, the company continues to engage with the Government of Niger regarding disputed matters connected with the R1234 production sharing contract. It is also assessing potential acquisitions across hydrocarbons as well as thermal and renewable power as part of its wider growth strategy.
Savannah is additionally expanding its sustainability disclosures, including reporting aligned with IFRS and SASB frameworks, as it develops a broader energy portfolio across Africa.
The company’s investment outlook remains mixed. Revenue growth and underlying profitability provide support, but high leverage and weaker cash conversion and free cash flow trends remain significant financial considerations. Share-price momentum has been positive, although elevated RSI and stochastic readings indicate potential overbought conditions. Valuation is more supportive, with the shares trading on a comparatively low price-to-earnings multiple.
About Savannah Energy
Savannah Energy PLC is a British independent energy company with operations focused primarily on oil, gas and power projects across West and Central Africa.
Its Nigerian portfolio includes gas production assets supplying domestic electricity generators and industrial customers, alongside oil production from the Stubb Creek field. The company uses reserve-based lending facilities and commodity hedging arrangements as part of its approach to financing operations and managing exposure to oil price movements.
Savannah is also pursuing growth opportunities beyond its existing hydrocarbon portfolio, including potential investments in thermal and renewable power projects as it seeks to expand its position within Africa’s energy sector.
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