(Alliance News) - Savannah Energy PLC on Monday reported a strong performance for 2020, with revenue not only growing above the year before, but also surpassing company guidance.
Shares in the Niger and Nigeria-focused energy firm were 5.7% higher at 14.80 pence in Monday in London.
For the year, Savannah Energy reported revenue at USD235.9 million, up 23% year-on-year from USD192.1 million and also above company guidance of "greater than USD200 million".
In Nigeria, average gross production reached 19,500 barrels of oil equivalent per day, up 14% from 17,200 barrels per day in 2019. The 2020 figure was also in line with Savannah's guidance range of 19,000 to 20,000 boepd.
Of 2020's production figure, 88% was gas, due to an increase in output from the Uquo gas field.
Meanwhile, in Niger, Savannah said that plans for delivering the R3 East development remain in progress, with the intent to start the installation of an early production scheme by the end of 2021.
Looking ahead, Savannah has issued guidance for 2021, expecting revenue to be greater than USD205.0 million, from upstream and midstream activities associated with the company's three gas sales deals in Nigeria and liquid sales from the Stubb Creek and Uquo fields.
"As this 2020 trading update demonstrates, despite the challenging headwinds, 2020 was a milestone year for Savannah Energy. It was our first full year of operating the high margin assets we acquired in Nigeria and I am delighted to report that we have significantly exceeded all of the original financial guidance we presented to the market this year, as laid out in our corporate Key Performance Indicator statement published within our 2019 annual report," said Chief Executive Officer Andrew Knott.
"Looking forward to 2021, we are providing guidance for the year for continued strong revenue generation, investments in key drilling and compression projects and an increased level of maintenance project activity versus 2020," Knott added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Savannah Energy (SAVE)