Savannah EnergyLSE:SAVE -0.33% Interest Coverage is 0.56 as of Jun. 2025, which is 57% below its 10-year median of 1.29. The stock has 7 warning signs investors should review. Among 731 Oil & Gas companies, Savannah Energy ranks worse than 95.08% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Savannah Energy's
Operating Income
for the
six
months ended in Jun. 2025 was £28.0 Mil. Savannah Energy's Interest Expense for the
six
months ended in Jun. 2025 was £-49.6 Mil.
Savannah Energy's interest coverage for the quarter that ended in Jun. 2025 was 0.56.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Savannah Energy PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Savannah Energy's Interest Coverage or its related term are showing as below:
LSE:SAVE'
s Interest Coverage Range Over the Past 10 Years
Min: 0.65 Med: 1.29 Max: 2.01
Current: 0.65
LSE:SAVE's Interest Coverage is ranked worse than 95.08% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs LSE:SAVE: 0.65
Savannah Energy (LSE:SAVE) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Savannah Energy Interest Coverage Related Terms
Savannah Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Savannah Energy's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LSE:SAVE vs COP, EOG, FANG: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Savannah Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Savannah Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Savannah Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Savannah Energy's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Savannah Energy (LSE:SAVE) has a Interest Coverage of 0.56 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Savannah Energy and its competitors. This is 57% below median its historical median of 1.29. Over the past decade, Savannah Energy's Interest Coverage has ranged from 0.65 to 2.01. According to the industry distribution chart, Savannah Energy ranks #695 out of 731 companies in the Oil & Gas industry, placing it in the top 95.1%.
Is Savannah Energy's Interest Coverage too high?
Savannah Energy's current Interest Coverage of 0.56 is 57% below median its 10-year median of 1.29. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 2.01. The Oil & Gas industry median Interest Coverage is 5.89. Savannah Energy's value of 0.56 is 90.5% below this industry median. Based on the distribution chart, Savannah Energy ranks #695 out of 731 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers.
How does Savannah Energy's Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Savannah Energy ranks #695 out of 731 companies for Interest Coverage. This places Savannah Energy in the lower half of its industry. The industry median Interest Coverage is 5.89. Savannah Energy's value of 0.56 is 90.5% below this benchmark. Historically, Savannah Energy's own Interest Coverage has ranged from 0.65 to 2.01 over the past decade. While the company's 10-year median is 1.29 vs. the industry median of 5.89, Savannah Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Savannah Energy's current Interest Coverage of 0.56 is 90.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Savannah Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Savannah Energy's current Interest Coverage is 0.56, which is 57% below median its own 10-year median of 1.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Savannah Energy stock overvalued right now?
Based on GuruFocus' analysis, Savannah Energy (LSE:SAVE) is currently considered Possible Value Trap. The stock's GF Value™ is £0.26, compared to a current price of £0.06 — trading 76.6% below its estimated fair value. The current Interest Coverage is 0.56, which is 57% below median its 10-year median of 1.29 and 90.5% below the Oil & Gas industry median of 5.89. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Savannah Energy (LSE:SAVE), the current Interest Coverage is 0.56 as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Savannah Energy PLC is an energy company focused on the exploration, development, and production of natural gas and crude oil across Africa. The Group operates through four segments, with its primary activities centered on the exploration, development, and extraction of oil and gas. Its key geographical markets include Nigeria, Cameroon, and Niger.
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