Savannah Energy Reports Robust Financial Growth, NIPCO Joins as Strategic Investor
In a major show of strength in Africa’s upstream and midstream energy markets, Savannah Energy PLC, a British independent energy company with significant operations in Nigeria and East Africa, has announced a strong financial and operational performance for the nine months ended September 30, 2025.
According to the company’s unaudited financial and operational update, total revenues rose to US$185.2 million, up by 9% from US$169.3 million recorded in the same period in 2024. Cash collections surged to US$241.6 million, marking a 5% increase, while cash balances soared to US$101.8 million, a substantial leap from US$32.6 million at the end of 2024 — underscoring the company’s improved liquidity and cash management efficiency.
Savannah also reported a slight reduction in net debt, now standing at US$629.9 million, down from US$636.9 million, with trade receivables improving by 9% to US$493.3 million.
In one of its most significant moves of the year, Savannah secured an agreement with a consortium of Nigerian banks to expand its Accugas debt facility from ₦340 billion (approximately US$222 million) to ₦772 billion (around US$500 million). This facility expansion, according to the company, will allow Savannah to fully repay its U.S. dollar obligations by year-end 2025, strengthening its balance sheet against foreign exchange exposure.
The company’s East African subsidiary has also signed a US$37.4 million term sheet with a major African financial institution to fund the planned acquisition of a 50.1% stake in Klinchenberg BV, which indirectly holds interests in three East African hydropower projects.
Adding to its financial dynamism, Savannah plans to raise £11.3 million through the subscription of 161 million new shares at 7 pence each, with an additional £9.7 million expected from its March 2025 fundraising round.
Perhaps the most notable announcement in the report is the entry of NIPCO Plc, a diversified Nigerian energy conglomerate, as a new strategic investor. NIPCO will inject £28.7 million into Savannah through a combination of primary and secondary share acquisitions, securing a 19.4% stake in the company.
Savannah’s Chief Executive Officer, Andrew Knott, also confirmed his intention to increase his personal shareholding to approximately 12.6%, a move seen by market observers as a strong vote of confidence in the company’s long-term growth trajectory.
Operationally, Savannah’s gross production in Nigeria averaged 20,100 barrels of oil equivalent per day (boepd), with natural gas accounting for 85% of output. The company’s Stubb Creek expansion has lifted production to 3,300 barrels per day, a 24% increase over 2024 levels.
Meanwhile, construction activities are underway for the Uquo NE development well, part of a two-well drilling campaign scheduled to commence in early 2026. Savannah has also commissioned a new gas compression system at its Uquo Central Processing Facility, delivered 10% below the original US$45 million budget.
The energy firm further extended its gas sales contract with Central Horizon Gas Company Limited until December 2026, reaffirming its position as a key player in Nigeria’s gas-to-power market.
Looking beyond Nigeria, Savannah continues to expand its renewable and hydropower portfolio across Uganda, Burundi, the Democratic Republic of the Congo, Malawi, and Rwanda. Notably, the company is advancing work on two major projects: the 250 MW Parc Eolien de la Tarka Wind Farm in Niger and the 95 MW Bini a Warak Hydro-Solar Project in Cameroon.
Knott described 2025 as “a year of consolidation and expansion,” emphasizing the company’s focus on debt refinancing, production optimization, and long-term value creation. He hinted at the possibility of future share buybacks or tender offers if cash flows and arbitration proceeds surpass expectations.
“Our mission remains to deliver sustainable energy solutions that transform lives and power economies across Africa,” Knott said. “We are proud of our people, our partners, and our host communities for driving this vision forward.”
