A compelling investment opportunity
Five reasons to invest
Predictable base revenue stream
Savannah has three high-quality, high-growth business units in Cameroon, Niger and Nigeria. Our Nigerian assets’ future contracted revenues are derived from fixed price, long-term gas sales agreements with a weighted average remaining contract life of 14 years and US$3.5 billion of remaining life-of-contract revenues1. Over 90% of our current contracted revenues are with customers providing investment grade credit guarantees2.
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 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 and metrics are industry leading. Our sustainability strategy is focused on four key pillars which are aligned with 13 of the United Nations Sustainable Development Goals (“UN SDGs”).
Strong organic growth potential
In the hydrocarbon space we see organic growth potential in each of our existing countries of operation. In Nigeria, we expect to deliver significant organic growth through the potential redevelopment of the Stubb Creek Field, the sale of third party gas through our Accugas pipeline network and potentially further new gas sales agreements with existing and new customers. In Niger, we expect to progress our R3 East development with plans to tie it directly into the new Niger- Benin pipeline. We also have significant additional longer-term growth potential associated with 146 exploration targets within our licence area.
In the renewable energy space we are focused on identifying new large-scale greenfield power projects in our core African region and are confident in reaching our target of up to 1 GW+ of renewable energy projects in motion by end 2024.
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.
1 Remaining life of contact revenues estimated on a maintenance adjusted take-or-pay basis including contributions from three of our customers: Calabar Generation Company Limited (owner of the Calabar power station), Ibom Power Company Limited (owner of the Ibom power station) and the Lafarge Africa PLC (owner of the Lafarge Mfamosing cement plant). Note this is not an audited number.
2 Investment grade indicates credit support from an entity which holds an investment grade rating from either Standard & Poor’s, Moody’s or Fitch Ratings.
3 Source: International Energy Agency
