ShaMaran Petroleum (SNM) Q1 2026 earnings summary

Executive summary

• Temporary production shut-ins at Atrush and Sarsang blocks began in early March 2026 due to regional security concerns linked to the Iran war, with both fields remaining offline as of the report date.

• Explosions occurred at Sarsang field facilities in March and April 2026, but no injuries were reported.

• The company is transitioning its incorporation from Canada to Bermuda, delisting from TSXV, and seeking a new listing on Euronext Growth Oslo, with shareholder approval secured.

• International oil exports via the Iraq-Türkiye pipeline (ITP) resumed in September 2025 under interim agreements, with payments received regularly from SOMO.

• Safety, cost reduction, and readiness to restart are current priorities while awaiting improved security conditions.

Financial highlights

• Q1 2026 revenue was $38.0 million, up 6% year-over-year, driven by higher international oil prices despite a 45% drop in production volumes.

• Net income for Q1 2026 was $17.0 million, compared to a net loss of $1.1 million in Q1 2025.

• Gross margin on oil sales rose 82% to $22.7 million, reflecting higher prices and lower costs.

• Adjusted EBITDAX was $28.1 million, up 15% year-over-year, reflecting lower corporate costs and higher margins.

• Cash flow from operating activities was $21.4 million, down 33% from Q1 2025 due to timing of receipts and higher capex.

• Cash at March 31, 2026, was $36.5 million; by May 6, 2026, cash rose to $40.7 million.

• Net debt at March 31, 2026, was $107.2 million; by May 6, 2026, net debt was $103.1 million.

• Gross debt (corporate bond) was $143.8 million.

Outlook and guidance

• Production restart timing is uncertain and contingent on regional security; Atrush expected to return to full capacity quickly, Sarsang to ramp up in phases as repairs are completed.

• Operational and capital plans for 2026 depend on security and the continuation or renegotiation of the ITP export agreement, which expires July 2026.