7th Jun 2024 14:35
(Clarifies that shares are currently suspended.)
(Alliance News) - Savannah Energy PLC on Friday reported a weak financial performance amid challenging economic conditions.
The Africa-focused energy company reported a USD68.9 million pretax loss for 2023, widening from USD53.7 million in 2022.
Total revenue fell by 10% to USD260.9 million from USD290.4 million, while operating plus administrative expenses increased 4.0% to USD68.8 million from USD66.2 million.
Capital expenditure fell 80% to USD13.0 million from USD66.2 million.
The company ended the year with USD484.9 million current assets and USD638.1 million in current liabilities.
Chief Executive Officer Andrew Knott said: "Our core business continued to perform strongly, while we have progressed our projects in Niger during a period of political change, progressed two separate hydrocarbon acquisitions which are material to our business, continued to grow our renewable energy business, managed the impact of the nationalisation of our Chad assets to ensure that we receive the value we are due and positioned ourselves strongly to announce further new and exciting projects in 2024."
Throughout the year, Savannah Energy said it had to contend with rising inflation and falling energy prices, with benchmark oil and liquefied natural gas prices decreasing 18% and 38%, respectively.
Looking ahead, total revenue in 2024 is guided to exceed USD245 million and operating plus administrative expenses will increase to USD75 million. The company intends on increasing capital expenditure to USD50 million.
Savannah Energy shares are currently suspended due to a reverse takeover by Petronas International Corp. Last traded at 26.25 pence in December 2022.
By Elijah Dale, Alliance News reporter
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