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Savannah Petroleum PLC (GB:SAVE)
LSE:SAVE
UK Market

Savannah Petroleum (SAVE) AI Stock Analysis

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GB:SAVE

Savannah Petroleum

(LSE:SAVE)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
8.00p
▲(3.23% Upside)
The score is driven primarily by mixed financial quality: strong profitability and revenue growth are offset by high leverage and concerning cash flow conversion/free cash flow trends. Technicals are momentum-positive but look overbought (high RSI/Stoch), while valuation is a notable positive due to the very low P/E.
Positive Factors
High Profitability Margins
Savannah's very high reported margins indicate durable operational efficiency and strong cost control across its producing assets. Persistently wide gross and operating margins support cash generation, reinvestment capacity and resilience to cyclical price swings over the medium term.
Consistent Revenue Growth
Sustained revenue growth reflects either rising production or improved realizations and underpins scale economics. Continued top-line expansion improves margin leverage, supports capex funding and strengthens medium-term cash flow visibility for development projects and debt servicing.
Strategic Partnerships & Cost Discipline
Partnerships and disciplined, low-cost operations reduce execution risk and improve access to technical, commercial and financing resources. Cost-effective drilling and production enhance competitive advantage and help sustain margins across commodity cycles over the next several months.
Negative Factors
High Leverage
A debt-to-equity ratio of 2.34 creates material financial risk in a capital-intensive E&P business. High leverage reduces flexibility to fund development, raises refinancing risk and amplifies downside exposure to production interruptions or price declines over the medium term.
Weak Cash-Flow Conversion
An extreme drop in FCF growth and only 0.26x OCF-to-net-income signal that accounting profits are not reliably converting to cash. Poor conversion limits the company's ability to service debt, invest in development or maintain distributions, increasing structural liquidity risk.
Margin Volatility
Significant swings in net margins point to volatile realizations, costs or one-off items. Margin unpredictability undermines forecasting of free cash flow and complicates capital allocation, making it harder to plan debt repayment and long-term investments reliably.

Savannah Petroleum (SAVE) vs. iShares MSCI United Kingdom ETF (EWC)

Savannah Petroleum Business Overview & Revenue Model

Company DescriptionSavannah Energy PLC engages in the exploration, development, and production of natural gas and crude oil. It holds license interest in Agadem Rift Basin prospective located in the south east Niger covering an area of approximately 13,655 square kilometers. The company also has an 80% interest in the Uquo field asset; 51% interest in the Stubb Creek oil and gas field; and 80% interest in the Accugas midstream assets located in south east Nigeria. In addition, it is involved in the development of other energy related projects in Africa. The company was formerly known as Savannah Petroleum Plc and changed its name to Savannah Energy PLC in April 2020. Savannah Energy PLC was incorporated in 2014 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySavannah Petroleum generates revenue primarily through the exploration, development, and production of oil and gas resources. The company's key revenue streams include sales of crude oil and natural gas from its operational fields, along with potential future revenues from gas processing and transportation. The company has established significant partnerships with local and international oil and gas companies, which enhance its operational capabilities and market access. Moreover, Savannah Petroleum's business model is supported by cost-effective drilling and production techniques, allowing it to maximize profitability in a competitive market. The company's strategic focus on high-potential assets and efficient resource management further contributes to its revenue generation.

Savannah Petroleum Financial Statement Overview

Summary
Income statement strength (78) is supported by revenue growth and strong margins, but balance sheet leverage (debt-to-equity 2.34; balance sheet score 65) and weak cash flow dynamics (cash flow score 55, including a sharp free cash flow growth decline and low operating cash flow to net income) meaningfully increase financial risk.
Income Statement
78
Positive
Savannah Petroleum has shown consistent revenue growth over the years, with a 5.01% increase in the most recent year. The company maintains strong profitability with a high gross profit margin of 66.95% and a net profit margin of 13.65%. The EBIT and EBITDA margins are exceptionally high at 88.06% and 103.79%, respectively, indicating efficient cost management and operational performance. However, the net profit margin has fluctuated significantly over the years, which could pose a risk.
Balance Sheet
65
Positive
The company's balance sheet shows a high debt-to-equity ratio of 2.34, indicating significant leverage, which is common in the oil and gas industry but poses financial risk. The return on equity is moderate at 10.77%, reflecting decent profitability relative to shareholder equity. The equity ratio is not provided, but the high leverage suggests a lower equity ratio, which could impact financial stability.
Cash Flow
55
Neutral
Savannah Petroleum's cash flow statement reveals challenges in free cash flow growth, with a significant decline of -119902.84%. The operating cash flow to net income ratio is low at 0.26, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively healthy at 80.17%, suggesting that the company is still generating cash relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue209.44M227.03M224.18M212.50M185.80M169.00M
Gross Profit121.83M152.01M146.36M140.44M120.79M96.55M
EBITDA206.04M235.63M58.25M55.18M101.91M118.97M
Net Income93.76M31.00M14.86M-61.33M768.00K-6.68M
Balance Sheet
Total Assets1.29B1.57B1.52B1.76B1.35B1.21B
Cash, Cash Equivalents and Short-Term Investments36.77M32.59M53.66M114.47M49.88M78.61M
Total Debt498.72M673.52M585.46M650.87M531.03M522.72M
Total Liabilities966.30M1.26B1.25B1.52B1.04B980.27M
Stockholders Equity304.65M287.95M254.50M233.42M292.90M229.67M
Cash Flow
Free Cash Flow45.92M93.58M20.27M52.13M95.60M104.02M
Operating Cash Flow61.62M116.73M33.22M75.69M128.12M115.57M
Investing Cash Flow-45.14M20.02M109.32M22.65M-123.24M-11.32M
Financing Cash Flow-27.03M-113.15M-116.80M-22.99M-25.16M-76.72M

Savannah Petroleum Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.75
Price Trends
50DMA
6.72
Positive
100DMA
6.79
Positive
200DMA
6.96
Positive
Market Momentum
MACD
0.03
Positive
RSI
46.39
Neutral
STOCH
22.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAVE, the sentiment is Negative. The current price of 7.75 is above the 20-day moving average (MA) of 7.64, above the 50-day MA of 6.72, and above the 200-day MA of 6.96, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 22.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SAVE.

Savannah Petroleum Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
£130.76M1.1134.81%7.74%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
61
Neutral
£180.93M-10.98-6.29%-32.66%72.67%
55
Neutral
£171.81M-4.09-11.54%-0.20%-25.68%
54
Neutral
£136.90M8.9956.01%4.56%
44
Neutral
£110.24M-25.27-100.00%-84.62%
44
Neutral
£194.73M-5.34-92.03%-16.87%21.18%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SAVE
Savannah Petroleum
7.10
-19.15
-72.95%
GB:GENL
Genel Energy
62.40
-7.60
-10.86%
GB:CNE
Capricorn Energy PLC
259.00
-55.00
-17.52%
GB:PANR
Pantheon Resources
7.58
-49.32
-86.68%
GB:JSE
Jadestone Energy Inc
25.25
-0.50
-1.94%
GB:KIST
Kistos PLC
235.00
108.00
85.04%

Savannah Petroleum Corporate Events

Other
Savannah Energy CEO Consolidates 13.81% Stake Through Internal Share Transfers
Neutral
Jan 14, 2026

Savannah Energy PLC has disclosed that Chief Executive Officer and Director Andrew Knott has undertaken internal transfers of a total of 135,261,638 ordinary shares between companies he beneficially owns, in order to consolidate his holdings into a single corporate vehicle. The transactions, carried out on 12 January 2026 on AIM at 7.0p per share, do not alter Knott’s overall beneficial stake in Savannah, which remains at 13.81%, and are presented as an administrative restructuring rather than a change in his economic interest, signalling continuity of executive alignment with shareholders and no immediate impact on the company’s capital structure.

The most recent analyst rating on (GB:SAVE) stock is a Buy with a £10.00 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and Strategy
Savannah Energy Finalises Relationship Agreement with NIPCO Plc
Positive
Jan 13, 2026

Savannah Energy PLC has finalised and entered into a relationship agreement with NIPCO Plc following the completion of regulatory consultation, confirming the terms previously outlined in late December 2025. The conclusion of this agreement formalises Savannah’s strategic association with NIPCO, a step that may influence its future operational and commercial framework, with potential implications for governance, collaboration, and the company’s positioning within its African-focused energy portfolio.

The most recent analyst rating on (GB:SAVE) stock is a Buy with a £10.00 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and Strategy
Savannah Energy Appoints Tennyson Securities as Joint Broker
Positive
Jan 13, 2026

Savannah Energy PLC, a UK-based independent energy company focused on key energy infrastructure projects in Africa, operates with a strategic emphasis on delivering impactful projects that support regional development and energy access. The company has appointed Tennyson Securities as a joint broker alongside Cavendish Capital Markets Ltd, a move that is expected to broaden its capital markets support and potentially enhance investor outreach and liquidity in its shares, underscoring its ongoing efforts to strengthen market engagement and corporate advisory capabilities.

The most recent analyst rating on (GB:SAVE) stock is a Buy with a £10.00 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Regulatory Filings and Compliance
Savannah Energy Non-Executive Director Sells 1.5 Million Shares
Neutral
Jan 8, 2026

Savannah Energy PLC has disclosed that Non-Executive Director Mark Iannotti sold 1.5 million existing ordinary shares in the company at 8.1p per share on 8 January 2026, in a transaction conducted on the London Stock Exchange’s AIM market. The director dealing, notified under market abuse regulations, signals a notable change in board-level shareholding and will be closely watched by investors for any perceived implications regarding insider confidence and the company’s valuation, although no additional commentary on the rationale or impact of the sale was provided.

The most recent analyst rating on (GB:SAVE) stock is a Hold with a £6.50 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Savannah Energy Bolsters Board with Appointment of Nigerian Legal Senior Advocate
Positive
Jan 2, 2026

Savannah Energy PLC has strengthened its board with the appointment of Nigerian legal heavyweight Kehinde Olamide Ogunwumiju as a non-executive director, effective immediately, as the company pursues its growth strategy across Africa. Ogunwumiju, managing partner of leading African law firm Afe Babalola & Co and one of the youngest-ever Senior Advocates of Nigeria, brings extensive experience in high-stakes energy-related litigation and international arbitration, including representing Nigeria’s state oil company and the federal government in major disputes. His appointment is expected to bolster Savannah’s governance, legal risk management and regional credibility as it advances its expansion ambitions on the continent.

The most recent analyst rating on (GB:SAVE) stock is a Hold with a £6.50 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and StrategyStock Buyback
Savannah Energy Reshapes Shareholder Base as NIPCO and CEO Lift Stakes
Positive
Dec 30, 2025

Savannah Energy PLC has completed a series of secondary market transactions in its ordinary shares, resulting in Nigerian downstream group NIPCO increasing its stake to about 26.5% of the company’s issued share capital. At the same time, CEO Andrew Knott purchased 25.5 million existing shares, lifting his holding to roughly 292.8 million shares, or 13.8% of the company, and the parties have agreed to terminate a previously announced off‑market share buyback arrangement involving 143.6 million shares to enable these trades. The reshaping of the shareholder base consolidates significant stakes with a strategic investor and the chief executive, signalling confidence in Savannah’s prospects and potentially strengthening governance alignment and support for the company’s long‑term African energy projects.

The most recent analyst rating on (GB:SAVE) stock is a Hold with a £6.50 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and StrategyStock BuybackPrivate Placements and Financing
Savannah Energy Reshapes Capital Plan as NIPCO Lifts Stake and CEO Increases Holding
Positive
Dec 30, 2025

Savannah Energy plans to enter a formal relationship agreement with its largest shareholder, NIPCO Plc, as NIPCO moves to increase its stake in the company to as much as 26.5% through secondary market share purchases. In tandem, Savannah will terminate its previously approved off-market share buyback agreement, allowing NIPCO to acquire the bulk of the shares that were to be repurchased, while CEO Andrew Knott will purchase the remaining portion, lifting his own holding to about 13.8% of issued capital. The relationship agreement is designed to protect minority investors and preserve Savannah’s operational independence by securing NIPCO’s support for governance resolutions, ruling out hostile takeover attempts and imposing orderly market disposal rules, and the board highlights that halting the buyback preserves roughly £10.05 million in cash and maintains flexibility for future on-market buybacks. The independent directors, advised by Strand Hanson, have deemed these related-party arrangements fair and reasonable for shareholders, framing the larger strategic shareholder stakes and codified governance protections as strengthening the company’s financial position and alignment between management, major investors and minority shareholders.

The most recent analyst rating on (GB:SAVE) stock is a Hold with a £6.50 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Savannah Energy Targets Multi-Country Growth as Cash Collections Rise and Nigerian, East African Projects Advance
Positive
Dec 30, 2025

Savannah Energy reported an 11-month 2025 operational and financial update showing resilient performance despite lower average gross daily production of 19.1 Kboepd, supported by higher cash collections of US$260.8 million, modestly lower revenues of US$218.1 million, and improved trade receivables, while maintaining access to largely non-recourse debt. The completion of the SIPEC acquisition has driven a 24% increase in Stubb Creek oil output and under-budget completion of a new gas compression system at the Uquo Central Processing Facility is expected to maximise future gas production, as the company pushes ahead with drilling plans at Uquo, considers renewed exploration and development in Niger’s R1234 PSC and R3 East area, and advances a strategic shift in its power division through a proposed entry into five new East African countries via hydropower assets alongside ongoing wind and solar projects, collectively positioning Savannah for expanded multi-country growth and potentially accelerated receivables recovery in Nigeria’s power and gas value chain.

The most recent analyst rating on (GB:SAVE) stock is a Hold with a £6.50 price target. To see the full list of analyst forecasts on Savannah Petroleum stock, see the GB:SAVE Stock Forecast page.

Business Operations and StrategyStock BuybackShareholder Meetings
Savannah Energy Secures Shareholder Approval for Key Resolutions
Positive
Nov 28, 2025

Savannah Energy PLC announced that all resolutions at its recent General Meeting were approved by a significant majority. The resolutions included the approval of a Buyback Agreement and the purchase of the company’s own shares, indicating strong shareholder support for the company’s strategic initiatives.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 09, 2026