A compelling investment opportunity
Five reasons to invest
Predictable base revenue stream
Savannah has three high-quality, high‑growth business units in Nigeria, Niger and Cameroon. Our current producing assets providing a predictale base revenue stream are in Nigeria, where future contracted gas revenues are derived from fixed price, long-term gas sales agreements with a weighted average remaining contract life of 13.6 years and US$3.5 billion of remaining life-of-contract revenues(b). Over 90% of our current contracted revenues are with customers providing investment grade credit guarantees(e).
Proven track record of delivery
Savannah has a strong and proven track record of delivering value in a safe and sustainable manner. We benefit from a strong and functionally arranged operating platform, a purposeful performance driven culture, and a highly experienced Board and senior management team. We have a strong track record of delivering our capital projects on time and budget, of delivering post-acquisition asset performance enhancements and of exploration excellence.
Making a sustainable impact
We seek to deliver energy projects in Africa which make meaningful positive socio-economic contributions to our host countries. We strive to manage all of our operations in a safe, secure and environmentally sustainable manner. Our carbon intensity, diversity and local content performance metrics are industry leading. Our sustainability strategy is focused on four key pillars aligned with 13 of the United Nations Sustainable Development Goals.
Strong organic growth potential
In Nigeria, we expect to deliver significant organic growth through an expansion programme at the Stubb Creek Field, the compression project at the Uquo CPF, the sale of third-party gas through our pipeline network, and potential new and extended gas sales agreements. In Niger, we are continuing to seek to progress the R3 East development, subject to satisfactory stakeholder agreements being entered into, with plans for a four-well testing programme in 2025. We also have significant additional longer-term growth potential associated with 146 exploration targets within our licence area. Across our power business, we are focused on developing new, large-scale greenfield renewable energy projects in our core African region, where we believe the market opportunity is likely to be c. 310 GW by 2030¹ as well as expanding its remit to include thermal as well as renewable energy projects.
Strong inorganic growth potential
We continue to actively review new acquisition opportunities focused predominantly on: cash-generative, or near-term cash-generative, upstream and midstream assets; and/or “bolt-on” assets for which there is significant synergistic value to our existing operations. In the case of the former, typically larger opportunities, our focus is upon those that are being offered by vendors which are divesting assets for “strategic” reasons and would be unit value per share accretive to Savannah. We see significant value creation potential in such deals, with the performance improvements we have delivered in our Nigerian assets post-acquisition a prime example of how this can be achieved, as well as our recent acquisition of SIPEC2 which is highly accretive to group net asset value, adding a management estimated US$194 million of value to Savannah on a predebt basis4.
1. Source: IEA.
2. Sinopec International Petroleum Exploration and Production Company Nigeria Limited.
3. In 2017 Savannah entered exclusive discussions to acquire the Nigerian assets, this graph includes the period when Savannah had influence over running the assets before completion of the acquisition.
4. Please note that these are internal management estimates only which have not been audited. Whilst they have been prepared using reasonable care, they remain subject to change at any time.
Definitions
(b) Remaining life of contract revenues estimated on a maintenance adjusted take-or-pay basis including contributions from two of our customers: Calabar Generation Company Limited (owner of the Calabar power station), and the Lafarge Africa PLC (owner of the Lafarge Mfamosing cement plant). Note this is not an audited number.
(d) Total contributions to Nigeria and Niger defined as payments to governments, employee salaries and payments to local suppliers and contractors. Where total contributions refer to the period 2014–2023 they include contributions to Nigeria during the period pre-acquisition of the Nigerian assets by Savannah.
(e) Investment grade indicates credit support from an entity which holds an investment grade rating from either Standard & Poor’s, Moody’s or Fitch Ratings.
