Savannah Energy’s (LON: SAVE) share price spiked 13.21% higher Monday morning after releasing its full-year trading update.
The African focused British independent energy company develops high-quality energy projects in Nigeria and Niger.
The company's total revenue of $235.9 million exceeded the previous year of $192.1 million, up 23% and outperforming its forecasted revenue of over $200 million. The Group’s cash balance of $106 million is up 121% compared to 2019, and its net debt is $408.7 million, down 16% compared to the previous year at $484 million.
Furthermore, guidance for group depreciation, depletion, and amortisation items are set at $35-$37 million, whilst its operating costs are forecasted at $43-$47 million.
“2020 was a milestone year for Savannah Energy” stated CEO Andrew Knott. “In 2020 we grew revenues, reduced our underlying cost base, and continued to provide gas contributing to over 10% of Nigeria's daily national average power generation, highlighting the resilience of the business.”
Savannah also posted its forecast for 2021, stating that total revenue will be greater than $205 million, with administrative and operating costs of $55-$65 million, and group depreciation and depletion at $19 million fixed for infrastructure assets.
The business’ share price rallied to highs of 16.10p after the morning's press announcement, although its current price is at 15p, up 7.14%.