Savannah Energy PLC (LSE:SAVE) reported a 32% increase in revenue to US$242.1 million for the nine months ended 30 September 2026, supported by progress across its Nigerian oil and gas operations and increased cash collections.
The British independent energy company generated cash collections of US$281.0 million, up 16% from US$241.6 million in the corresponding period of 2025.
Operational developments included higher oil production at Stubb Creek, a gas discovery at Uquo South and progress on renewable energy projects in Cameroon and Niger.
Stubb Creek Production Rises 34% as Uquo South Discovers Gas
Savannah reported a 34% year-on-year increase in average gross daily oil production at Stubb Creek, reaching 3,900 barrels per day during the first nine months of 2026.
Production averaged approximately 5,000 barrels per day over the most recent three months, reflecting progress under the ongoing expansion programme.
The company has completed front-end engineering and design work and expects to sign an engineering, procurement and construction contract by the end of 2026.
At Uquo South, an exploration well completed in September encountered gas in most of its targeted reservoirs.
The well targeted unrisked gross gas initially in place of 131 billion standard cubic feet. Testing and evaluation are underway to assess the discovery’s resource implications, with completion expected in November.
Group average gross daily production was 17,000 barrels of oil equivalent per day during the nine-month period, compared with 18,800 barrels per day for the full year 2025.
Following the introduction of production from Uquo 13 in August, Savannah expects output to average approximately 20,000 barrels of oil equivalent per day during the remainder of 2026.
Full-year production guidance remains between 18,000 and 20,000 barrels of oil equivalent per day, depending on customer demand and potential additional production from Uquo South.
Revenue Climbs as Cash Collections Reach $281 Million
Savannah’s unaudited revenue increased to US$242.1 million from US$184.0 million in the corresponding nine-month period.
Cash collections rose to US$281.0 million, compared with US$241.6 million a year earlier.
At 30 September, cash balances stood at US$73.1 million, up from US$42.7 million at the end of December 2025.
Net debt increased to US$700.8 million from US$658.8 million, while gross debt totalled US$773.9 million.
Of the gross debt, US$56.4 million, representing approximately 7%, was recourse to the parent company, with the remainder held by subsidiaries on a non-recourse basis.
Trade receivables declined 13% to US$442.8 million from US$508.5 million at the end of 2025.
The company said improving collections under its Nigerian gas sales agreements remains a key financial priority.
Renewable Energy Projects Advance in Cameroon and Niger
Savannah signed a Joint Development Agreement with the Government of Cameroon for the proposed 95-megawatt Bini a Warak hybrid hydroelectric and solar project.
The agreement establishes a framework for cooperation on the project’s development.
In Niger, Savannah submitted the Environmental and Social Impact Assessment for its proposed Parc Eolien de la Tarka wind farm, which could have a capacity of up to 250 megawatts.
Discussions concerning a potential power purchase agreement are continuing, alongside engagement with the US International Development Finance Corporation.
Progress on the wind project remains linked to discussions with the Government of Niger concerning Savannah’s R1234 production-sharing contract.
The company is seeking to resolve contractual and operational disputes before potentially restarting oil activities in the country.
Chad Arbitration Proceedings and Financial Reporting Remain in Focus
Savannah continues to pursue arbitration proceedings relating to the nationalisation of its interests in Chad and disputes concerning the Chad-Cameroon pipeline.
Its subsidiaries are seeking more than US$775 million, plus interest and costs, relating to nationalised rights and assets in Chad.
A separate claim concerning COTCo is valued at approximately US$330 million, excluding interest and costs.
The company expects these proceedings to conclude during the fourth quarter of 2026, although further arbitration involving the Doba fields is expected to continue into 2027.
Savannah also confirmed that its audited 2025 annual results and unaudited half-year results for 2026 are expected to be published in November.
Its shares will remain suspended from trading on AIM until the required financial statements have been released and applicable requirements satisfied.
A separate review of the company’s AIM quotation and potential alternative listing arrangements remains ongoing, with no decision announced.
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