British independent energy firm Savannah Energy Plc has reported a strong financial and operational performance for the first four months of 2026, driven by a significant boost in its Nigerian operations and a massive surge in cash collections.
In a trading update released ahead of its Annual General Meeting on 1 June 2026, the company revealed that its total revenues for the four months ended 30 April 2026 jumped 17 per cent year-on-year to hit $104.1m, up from the $89.1m recorded during the corresponding period in 2025.
The primary catalyst for the company’s financial liquidity during the period was a stellar 48 per cent increase in cash collections, which reached $183.5m compared to $124.1m in the first four months of 2025.
This intensive cash recovery strategy successfully drove down the company’s trade receivables balance by 22 per cent, shrinking it to $395.2m from the $507.2m left on the books at year-end 2025.
Reacting to the performance, the Chief Executive Officer of Savannah Energy, Andrew Knott, expressed satisfaction with the firm’s strict financial positioning.
“Savannah continues to deliver against the nine core focus areas we set out for the business at the start of 2025. In Nigeria, we have seen a significant improvement in cash collections, alongside a 17 per cent year-on-year increase in revenues and a 22 per cent reduction in our trade receivables balance since year-end 2025. This reflects our ongoing focus on disciplined cash collections and receivables management, which remains a key priority for the business this year,” Knott stated.
The company’s balance sheet showed increased flexibility, with cash balances rising to $64.7m from the $42.8m recorded as of 31 December 2025. Concurrently, Savannah’s net debt bucked the industry trend by declining to $641.7m, down from $658.6m at the end of 2025.
To further anchor its medium-term financial position, Savannah announced it has secured a new £32m unsecured loan facility from NIPCO Plc, its largest shareholder. The facility is structured in two tranches, with £20m available immediately and £12m unlocking on 1 July. The loan carries a 4.5 per cent annual interest rate over a 36-month term and includes an optional conversion mechanism allowing Savannah to repay the debt through the issuance of new shares at 8p per share.
Knott noted that the NIPCO facility would strengthen the firm’s financial flexibility as it navigates operational timelines through 2026 and 2027.
Operationally, the energy firm reported strong progress on the ground in Nigeria, particularly following the integration of its March 2025 SIPEC acquisition. An ongoing production expansion programme at the Stubb Creek field successfully delivered an eight per cent increase in average gross daily production, lifting output to 3.1 kbopd compared to 2.8 kbopd in the same period last year.
However, group average gross daily production for the four months sat lower at 15.7 kboepd compared to the full-year 2025 average of 18.8 kboepd. The company attributed this dip to artificial constraints on gas production volumes resulting from heavy, ongoing drilling activities and localised customer gas demand.
Relief is, however, on the horizon for the company’s gas infrastructure. Savannah confirmed that drilling and completion activities at the Uquo NE well location have been concluded. Tie-in activities are currently entering their final stages at the Uquo Central Processing Facility, with first gas explicitly targeted for early July 2026 to support an expected surge in production for the second half of the year. Furthermore, site construction at the Uquo South exploration well is progressing rapidly and is expected to be fully ready for rig mobilisation by early June 2026.
Beyond its core oil and gas business in Nigeria, Savannah reported substantial milestones within its greenfield renewable power division across West and Central Africa. In the Niger Republic, the firm’s flagship Parc Eolien de la Tarka wind project received a major policy boost, with the country’s Minister of Energy confirming its inclusion on the government’s official list of priority infrastructure projects. Further developmental sequencing for the wind farm will run concurrently with Savannah’s ongoing discussions with the Nigerien government regarding the R1234 PSC and the potential resumption of wider oil operations.
Meanwhile, in Cameroon, negotiations with the state government have reached an advanced stage for a formal Joint Development Agreement regarding the 95 MW Bini a Warak hybrid hydroelectric and solar project. The upcoming agreement is slated to replace the initial April 2023 Memorandum of Agreement, legally securing Savannah’s commercial terms for the greenfield project.
Looking ahead, management indicated it remains on the hunt for more value-accretive assets, actively reviewing multiple acquisition opportunities across both traditional hydrocarbons and renewable power sectors over the next 24 months.
