Energy firm Savannah Energy posted $160.6 million in revenue, driven by a 12% year-on-year increase in Nigerian cash collections alongside positive gas discoveries at its Uquo South well. The results reflect the company’s growing presence in Nigeria’s energy sector.
The revenue increase is a positive sign for the company and for Nigeria’s energy sector. The positive gas discoveries at the Uquo South well could boost Nigeria’s gas production and provide a new source of revenue. The company’s performance suggests that there are still opportunities for growth in Nigeria’s energy sector.
The winners: Savannah Energy, which has posted strong results; and the Nigerian energy sector, which gains from increased production. The losers: the Nigerian government, which must ensure that the gas discoveries benefit the broader economy; and the Nigerian public, who must wait for the benefits.
Bottom Line: Savannah Energy’s revenue is up. Gas discoveries are positive. The question is whether the company can sustain the momentum.