SAVANNAH ENERGY PLC H1 2021 Results
30th September 2021
Disclaimer
These presentation materials (the "Presentation Materials") do not constitute or form any part of any offer or invitation or inducement to sell or issue or purchase or subscribe for any shares in Savannah Energy PLC ("Savannah") nor shall they or any part of them, or the fact of their distribution, form the basis of, or be relied upon in connection with, any contract with Savannah, or any other person, relating to any Savannah securities. The Presentation Materials do not constitute or form part of a prospectus prepared in accordance with the Prospectus Rules (being the rules produced and implemented by the Financial Conduct Authority ("FCA") by virtue of the Prospectus Rules Instrument 2005) and have not been approved as a prospectus by the FCA (as the competent authority in the UK). The Presentation Materials do not contain any offer of transferable securities to the public as such expression is defined in section 102(b) Financial Services and Markets Act 2000 or otherwise.
Any decision regarding any proposed purchase of shares in Savannah must be made solely on the basis of the information issued by Savannah at the relevant time. Past performance cannot be relied upon as a guide to future performance. The Presentation Materials are not intended to be distributed or passed on, directly or indirectly, to any other class of persons. They are being supplied to you solely for your information and may not be reproduced, forwarded to any other person or published, in whole or in part, for any other purpose. In particular they, directly or indirectly, must not be distributed to persons in the United States of America, its territories or possessions or Australia or Canada or New Zealand or Japan or the Republic of Ireland or South Africa or any jurisdiction, in each case, where to do so might constitute a violation of local securities laws or regulations.
The Presentation Materials contain certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. While Savannah believes the expectations reflected in the Presentation Materials to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Savannah's control or within Savannah's control where, for example, Savannah decides on a change of plan or strategy.
No reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials or on the completeness, accuracy or fairness of such information and/or opinions expressed herein. Savannah undertakes no obligation to revise any information contained in the Presentation Materials, including, without limitation, any forward-looking statements. No representation or warranty, express or implied, is made or given by or on behalf of Savannah or any of its directors, officers, partners, employees or advisers as to the accuracy or the completeness of the information or opinions contained in the Presentation Materials and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors or omissions.
Savannah Energy PLC | H1 Presentation September 2021
2
Savannah at a glance
About Us
- Leading African-focused British independent energy company
- Future contracted revenues are derived from fixed price long-term gas sales agreements with a weighted average remaining contract life of 17 years and over US$4.3bn of remaining life-of-contract revenues1
- Significant near-term growth expected from additional gas sales agreements in Nigeria and potential delivery of first production from the R3 East project in Niger
- Our growth ambitions are underpinned by a 31.4 year reserve and resource life
- Well-establishedtrack record of delivering capital projects on time and budget
- Proven track record of geotechnical excellence with five discoveries from the five exploration wells drilled to date
H1 2021 Results Highlights
- Total Revenues4 of US$116.5m (up 2% versus H1 2020 )
- Adjusted EBITDA5 of US$91.5m (up 3% versus H1 2020)
- Adjusted EBITDA5 margin of 79% (vs 78% H1 2020)
- Group cash balance of US$135.7m6 , Net Debt of US$369.4m7
- Gross daily production increased 6% to 22.6 Kboepd
- Proposed acquisition of upstream and midstream assets of ExxonMobil in Chad and Cameroon announced
- New GSA signed with Mulak Energy
- Launch of refocused sustainability strategy and roll out of new ESG framework
- Post period new gas production well spudded and new Niger PSC signed
- 2021 guidance (as issued in January 2021) reiterated for: Total Revenues4, Operating expenses plus administrative expenses8, DD&A and Capital Expenditure
Key Statistics | Blue Chip Shareholder Base | |||||
Listing (Ticker) | AIM (SAVE) | |||||
Share Price2 | 19.35 GBP/ share | |||||
Shares Outstanding | 996,408,412 | |||||
Director ownership | 4.36% | |||||
Market Cap.2 | US$268m | |||||
Enterprise Value3 | US$637m | |||||
FY 2020 Production | 19.5 Kboepd | |||||
End 2020 2P Reserves & 2C Resources | 157 MMboe | |||||
End 2020 2P/ 2C Reserve and Resource life | 31.4 years | |||||
Savannah Energy PLC | H1 Presentation September 2021
3
H1 2021 vs H1 2020
Total Revenues4 (US$m) | Gross production | |
(Kboepd) | ||
Cash collections (US$m) | Cash balance6 (US$m) |
+2% | |
114.6 | 116.5 |
H1 2020 | H1 2021 |
+6%
21.3 | 22.6 |
H1 2020 | H1 2021 |
+24% | |
82.1 | 101.6 |
H1 2020 | H1 2021 |
+28% | |
135.7 | |
106.0 | |
YE 2020 | H1 2021 |
Net debt7 (US$m) | Interest coverage ratio9 | |
Adj. EBITDA5
margin(%)
Adjusted leverage10 (Adjusted Net debt/Adj. EBITDA5)
408.7 | -10% |
369.4 | |
YE 2020 | H1 2021 |
+4% | |
2.8x | 2.9x |
FY 2020 | H1 2021 |
+1pt | |
78% | 79% |
H1 2020 | H1 2021 |
2.5x | -8% |
2.3x | |
YE 2020 | H1 2021 |
Savannah Energy PLC | H1 Presentation September 2021 | 4 |
Savannah's value delivery in Nigeria
Total Revenues4 (US$m) | ||
Cash collections (US$m) | ||
H1 trend +22% | H1 trend +84% | |
FY 235.9 | FY 168.8 | FY 187.4 |
FY 192.1 | ||
H1 95.5 | H1 114.6 | H1 116.5 |
2019 | 2020 | 2021 |
Pro-forma |
Proportion of Investment Grade rated sales11
H1 55.3 | H1 82.1 | H1 101.6 |
2019 | 2020 | 2021 |
Pro-forma |
Gross daily production rate (Kboepd)
+179%
94% | 95% | |
34% | ||
2018 | 2019 | 2020 |
+25%
18.1 | 21.3 | 22.6 | ||||||||||
H1 2019 | H1 2020 | H1 2021 |
Pro-forma |
Note: Numbers for 2019 refer to performance of Nigerian assets prior to the completion of the acquisition and are unaudited. Savannah entered into exclusive discussions to acquire the Nigerian assets in 2017
Savannah Energy PLC | H1 Presentation September 2021 | 5 |
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Savannah Energy plc published this content on 05 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 October 2021 08:41:50 UTC.
