WTI (June) $77.37 -$1.87, Brent (June) $81.10 -$2.02, Diff -$3.73 -15c.
USNG (May) $2.24 +2c, UKNG (May) 96.5p +1.01p, TTF (May) €40.95 +€0.60.
Further disappointing US data meant that oil had another bad day with a strong dollar as rates are set to rise next month as I have been saying all week. But ironically Chinese whispers on the economic front are a bit better…YHBW.
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter is pleased to announce the signing of a Memorandum of Agreement by Savannah Energy RCM Limited, a wholly owned subsidiary of Savannah, with the Government of the Republic of Cameroon for the development of the Bini a Warak Hydroelectric Project (the “Bini Project”) located in the northern Adamawa Region of Cameroon. A signing ceremony was held today in Yaounde, attended by His Excellency Gaston Eloundou Essomba, Minister of Water and Energy for the Republic of Cameroon, His Excellency Dr Christian Dennys-McClure, British High Commissioner to the Republic of Cameroon and Andrew Knott, Chief Executive Officer of Savannah.
The 75 megawatts (“MW”) Bini Project is expected to provide clean, stable and affordable power to Cameroon’s northern region. This is anticipated to support both existing local electricity demand and enable a number of energy-intensive industrial projects, principally in the cement and metallurgy industries, within the region. The Bini Project is expected to increase current on-grid electricity generation capacity in northern Cameroon by over 50%. There is also the potential for power to be dispatched into Cameroon’s southern electricity grid, upon completion of the interconnection, financed by the World Bank, of the northern and southern electricity networks currently planned by the Government for 2026.
The Bini Project involves the construction of a dam on the Bini River, together with an 82km2 reservoir and associated tunnels, powerhouses, substations and a 225 Kilovolt transmission line connecting the Bini Project to Cameroon’s northern electricity grid. It is intended to be developed on an independent power project basis with project sanction expected in 2024 and first power targeted in the 2027 to 2028 window.
Under the terms of the MOA, Savannah plans to supplement existing feasibility studies and work with power industry authorities and development finance institutions to finalise the development, financing and resumption of construction of the Bini Project.
Savannah expects to fund the Bini Project from a combination of its own internally generated cashflows and project-specific debt.
His Excellency, Gaston Eloundou Essomba, the Minister of Water and Energy for the Republic of Cameroon, said:
“The Government is delighted to partner with Savannah Energy in order to deliver clean and affordable electricity to support our industrialisation plans for northern Cameroon. The Bini Project will address the current electricity shortages caused by the hydrology deficit of the Ladgo Dam and reduce the consequent reliance on expensive thermal generated power in the region.
Our partnership with Savannah is in line with our long-term “Vision 2035″ Master Plan for increasing the electrification in the country and the National Strategy for Development 2020-2030. The decision to invest in the Bini Project is a clear indication of the confidence Savannah has in our country’s potential and our legal frameworks for investment. As a government, we will provide all the support needed to enable Savannah to deliver first power from this exciting project in the 2027 to 2028 window.”
His Excellency, Dr Christian Dennys-McClure, British High Commissioner to the Republic of Cameroon, said:
“I am delighted that a British company, Savannah Energy, is making such a substantial investment in renewable energy in Cameroon. Cameroon has plentiful hydropower resources which, through investments like this, can be harnessed to develop the economy and improve the lives of millions of Cameroonians. This is a further example of the United Kingdom’s commitment to Cameroon.”
Andrew Knott, CEO of Savannah Energy, said:
“I am delighted to announce the signing of the Bini a Warak MOA. The Bini Project is expected to provide clean, stable and affordable power to northern Cameroon that will support both households and industrial projects in the region. It is exactly the sort of high developmental economic impact project that our renewable power division is seeking to deliver. I would like to thank the Government of Cameroon and, in particular, His Excellency Gaston Eloundou Essomba Minister of Water and Energy for the strong support we have received in relation to Savannah taking over the development of the Bini Project. We look forward to working with the Government of Cameroon and our intended developmental finance partners as we move this project through the development and construction phases towards the intended first power in 2027 to 2028.
As a company, Savannah is seeking to continue to expand in Cameroon and we will continue to review other potential investment opportunities in the energy and sector. We expect the Bini Project will make a key contribution towards the attainment of Savannah Group’s targeted 1GW of renewable energy projects in motion by the end of 2023.”
This another, trademark Savannah deal is a deal that should satisfy a number of parties most of whom are quoted above. With work starting soon, and sanction expected next year with first power in 2027/2028 it is something that everyone should be proud of…
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, is pleased to announce that it has appointed Joseph Pagop Noupoué as a Non-Executive Director and Chair Designate, with immediate effect. As previously announced on 7 June 2022, Steve Jenkins plans to step down from his role as the Company’s Non-Executive Chair at the close of the 2023 Annual General Meeting, having completed over eight years in the role, but will continue to serve as a Non-Executive Director of the Company.
Joseph Pagop Noupoué is currently a senior partner at EY, the leading global professional services firm, whose work is focused around corporate (including contract, M&A and dispute resolution) and fiscal law matters, as well as major client relationship management in the French speaking and North African regions. He was formerly head of the Africa Department of EY Société d’Avocats France and is presently EY Managing Partner for Cameroon and Tax Leader for French speaking Africa leading more than 400 professional service providers located in nine countries.
Joseph’s private sector experience has spanned advisory work in over 20 African countries, for a client list which includes the energy (e.g. BP, Shell, Eni, TotalEnergies, ExxonMobil and Petronas) and mining (e.g. Rio Tinto, Kinross, Mittal and BHP) majors, as well as leading FTSE100, CAC40 and Fortune 500 energy and mining service companies and major private equity houses. His public sector practice has included work for many African countries (including around the drafting of those countries’ relevant energy and mining codes) and developmental finance institutions such as the World Bank Group.
Joseph is an Attorney at Law. He holds the French Bar Association Diploma (CAPA) and a Post Graduate Diploma in Banking and Finance (DESS) of the University of Lyon, France. Formerly registered with the French Bar (Hauts de Seine), he is registered with the Cameroon Bar. He also holds a Post Graduate Diploma in Banking and Finance (DESS) from the University of Lyon, France.
In conjunction with his appointment, Joseph has agreed to subscribe for 6,095,726 new ordinary shares in the capital of the Company (“Ordinary Shares”) at a subscription price as agreed between the Company and Joseph of 26.25 pence per share, equating to a total investment of approximately US$2 million
Commenting on the appointment, Steve Jenkins, Non-Executive Chair of Savannah, said:
“I am delighted that Joseph has been appointed as a Non-Executive Director and Chair Designate of Savannah. I believe his leadership skills, deep knowledge of the African business environment and extensive business, financial and legal expertise will serve Savannah well and will complement the skills of the existing Board and senior management team.
It has been a privilege to be the Chair of Savannah for over the past eight years and I look forward to contributing to the continuing success of the business as a Non-Executive Director.”
Joseph Pagop Noupoué commented:
“I am pleased to be joining Savannah at this key point in its growth and look forward to applying my experience to the role. I would like to thank outgoing Chair, Steve Jenkins, for his tenure in guiding this company since 2014 and look forward to working with him, the rest of the Board and executive management team towards our many and wide-ranging goals.
It is very clear to me that Savannah is ambitious but fuelled by a passion to do good in the world. The benefits Savannah has brought to African communities in Nigeria and Niger and plans for Cameroon and South Sudan are impressive and evident.”
Andrew Knott, CEO of Savannah Energy, said:
“I am delighted that Joseph has agreed to join Savannah as a Non-Executive Director and Chair Designate. Joseph has considerable experience in Africa and his background in advisory services to the African energy sector places him in an excellent position to steward Savannah to further growth through strong leadership and the promotion of good governance. I look forward to working with Joseph and would also like to take this opportunity to thank Steve Jenkins for his strong leadership of the Board from Savannah’s initial listing to the current day and am grateful that his experience will be retained in his continuing role as a Non-Executive Director.”
Nothing to add here.
Petrofac is pleased to announce that it has today entered into agreements to extend US$252 million1 of its banking facilities.
Petrofac and its lenders have agreed a 12-month extension of the Revolving Credit Facility (‘RCF’) and both bilateral bank facilities to October 2024 2.
The extension terms include a phased amortisation matching the projected deleveraging of the balance sheet, a waiver of the 31 December 2022 covenants, and the replacement of leverage and interest cover covenants with minimum EBITDA and liquidity covenants, which are better suited to the Company’s near-term outlook as it continues to make progress rebuilding the backlog.
This financing is in line with the Company’s strategy to pre-finance expected liquidity requirements for at least the next 12 months.
Publication of 2022 results
Petrofac will publish its financial results for the year ended 31 December 2022 on Thursday 27 April 2023, 48-hours later than previously announced.
This slight delay gives the Group and its auditor, EY, additional time to complete their procedures. No material changes to the positions set out in the trading update of 12 April 2023 are expected.
Details for the conference call will be published in advance.
This is a good renegotiation of its banking facilities by Petrofac and shareholders should be happy that at least the funding side of the business has been strengthened.
- US$252 million represents 90% of the facilities existing at 31 December 2022, with proportionate reductions made in all three facilities from the effective date.
- At 31 December 2022, the Group’s external borrowing facilities included an US$180 million revolving credit facility, of which US$124 million was drawn, and two fully drawn term loans, each of US$50 million.
Last night the Red Devils ran out of gas, players stepping up for injuries were poor, including Slabhead who should have played his last match, the two own goals in the first leg did it for the Red Devils. But the Hammers were magnificent, beating KAA Gent 4-1, 5-2 overall to reach the semi-finals of the Plate.
This weekend in the Prem, the Gooners host the Saints tonight and tomorrow the Cottagers host Leeds, the Bees entertain in-form Villa, the Toffees must get something at the Eagles as must the Foxes who host Wolves with Liverpool playing Forest…Later on Saturday the first FA Cup semi final sees the Noisy Neighbours facing the Blades at Wembley.
On Sunday the Cherries host the Hammers and the Bar coders host Spurs in the Prem whereas the Seagulls take on the Red Devils in the other FA Cup semi final, after last night it should be easy for the south coast team…
And Wrexham, I have had a number of, how you say nudges, to remind me that a win against Borehamwood tomorrow would see the club into the English League…
Tomorrow is the Scottish Grand National at Ayr and on the flat it’s Newbury.
And of course it is also the London Marathon on Sunday.