ShaMaran Petroleum (SNM) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a 59% year-over-year revenue increase to $35.9 million, driven by higher local oil sales and a larger working interest in the Atrush Block.

• Net loss for Q1 2025 was $1.1 million, primarily due to non-recurring transaction-related costs and share-based payments linked to share price appreciation.

• Average net daily oil production rose 90% year-over-year to 23.0 Mbopd, reflecting increased Atrush production and working interest.

• Approximately $56 million of corporate bond repaid in the first four months of 2025, representing 28% of the amount outstanding at end of 2024.

• The Iraq-Türkiye pipeline closure since March 2023 continues to materially impact operations and financial results.

Financial highlights

• Revenue: $35.9 million in Q1 2025, up from $22.6 million in Q1 2024 (59% increase).

• Gross margin: $12.5 million, up 82% year-over-year.

• Adjusted EBITDAX: $24.5 million, up 61% year-over-year.

• Free cash flow before debt service: $37.8 million, up 116% year-over-year.

• Cash at March 31, 2025: $79.3 million; gross debt: $188.7 million; net debt: $109.4 million.

Outlook and guidance

• The company is actively engaging with stakeholders to resume pipeline exports and achieve a commercial solution.

• Facility debottlenecking at Atrush is on schedule; East Swara Tika at Sarsang expected back online in Q2 2025.

• Bond amendments extend maturity to July 2029 and convert mandatory cash sweeps to voluntary, providing more flexibility for capital returns.

• Financial statements for the six months ending June 30, 2025, will be published on August 6, 2025.