ShaMaran Petroleum (SNM) Q1 2025 earnings summary

Executive summary

• Revenue rose 59% year-over-year to $35.9 million in Q1 2025, driven by higher local oil sales and increased working interest in the Atrush Block.

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

• Cash flow from operations increased 75% year-over-year to $32.0 million, with free cash flow before debt service up 116% to $37.8 million.

• The Iraq-Türkiye pipeline closure since March 2023 continues to materially impact operations; all oil is sold domestically at discounted prices.

• Subsequent to quarter-end, $29.4 million was swept to repay bonds, and bond maturity was extended to July 2029.

Financial highlights

• Gross margin on oil sales increased 82% year-over-year to $12.5 million, reflecting higher production and local sales.

• Adjusted EBITDAX was $24.5 million, up 61% from Q1 2024.

• Lifting costs rose 72% to $9.4 million due to higher production and increased working interest.

• Average net oil price was $33.57/bbl, 8% lower year-over-year due to sales mix and lower Brent prices.

• Net debt at March 31, 2025, was $109.4 million, with cash of $79.3 million and gross debt of $188.7 million.

Outlook and guidance

• The company is actively engaging with stakeholders to resume pipeline exports, but timing remains uncertain.

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

• Capital expenditure commitments for 2025 are contingent on continuation of local sales and economic factors.