Savannah Energy, the Africa-focused oil company,swung to profitability with a first-half profit after it completed the acquisition of assets in Nigeria last November.
The pre-tax profit for the six months through June amounted to $1.2 million, compared year-on-year to losses of $3.0 million. Post-tax profit was $1.8 million.
The company booked revenue of $91.7 million, having booked none in the previous corresponding period, though that was partly offset by $36.3m of financing costs, as well as sales costs.
‘I believe that our first-half results clearly demonstrate the transformation Savannah has undergone to become a cash generative business, benefitting from a long-dated, gas-biased revenue stream with no meaningful oil price exposure,’ chief executive Andrew Knott said.
‘We continue to see strong growth potential in both of our core business units, with gas sales to new customers expected in Nigeria and new oil sales from the R3 East project in Niger following the installation of an Early Production System, which is expected to commence by the end of FY 2021.’