ShaMaran Petroleum (SNM) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 rose 56% year-over-year to $35.4 million, driven by higher local oil sales and increased working interest in the Atrush Block.

• Net income for Q2 2025 was $3.5 million, compared to a net loss of $0.5 million in Q2 2024, reflecting improved gross margins and cost control.

• Net debt reduced by nearly 50% year-over-year, strengthening the base for potential shareholder distributions.

• Average net daily oil production in Q2 2025 was 22.7 Mbopd, up 88% year-over-year due to the Atrush acquisition and higher output.

• The Iraq-Türkiye pipeline closure since March 2023 continues to materially impact operations, with all sales directed to the local market.

Financial highlights

• Gross margin on oil sales in Q2 2025 was $12.8 million, up 73% year-over-year.

• Adjusted EBITDAX for Q2 2025 was $24.9 million, a 59% increase from Q2 2024.

• Free cash flow before debt service in Q2 2025 reached $27.9 million, up 66% year-over-year.

• Net debt at June 30, 2025, was $87.2 million, with cash of $67.2 million and gross debt of $154.4 million.

• Lifting costs rose 60% to $8.9 million in Q2 2025 due to higher production and increased working interest.

Outlook and guidance

• Sarsang Block production is expected to remain partially offline until late October 2025 following a July drone strike, while Atrush has resumed full capacity.

• The company continues to engage with authorities to resume pipeline exports and anticipates ongoing local sales until the Iraq-Türkiye pipeline reopens.

• Board authorized repayment of the remaining Nemesia loan, reducing gross debt to $143.8 million.

• Financial statements for Q3 2025 to be published on November 5, 2025.