ShaMaran Petroleum (SNM) Q3 2025 earnings summary

Executive summary

• Reopening of the Iraq-Türkiye pipeline after over two years enabled resumption of international oil exports at full contractual entitlement and international prices, improving revenue potential.

• Production was temporarily impacted by July drone attacks, but both Sarsang and Atrush fields returned to full capacity during the quarter.

• Interim agreements with the Kurdistan Regional Government and Iraq set compensation at $16 per barrel for an initial period, with reconciliation to full PSC entitlement expected in coming months.

Financial highlights

• Q3 2025 revenue was $28.9 million, down 2% year-over-year, mainly due to the drone strike, partially offset by four days of international price sales.

• Gross margin on oil sales was $9.3 million, 7% lower year-over-year, reflecting operational disruptions and higher working interest costs.

• Free cash flow before debt service was $4.8 million, a 78% decrease year-over-year, due to lower sales, delayed receipts, and higher repair costs.

• Adjusted EBITDAX was $17.9 million, down 18% year-over-year.

• At September 30, 2025, cash was $54.7 million, gross debt $143.8 million, and net debt $89.1 million.

Segment performance

• Atrush average gross daily oil production in Q3 2025 was 29.4 Mbopd; Sarsang was 18.2 Mbopd.

• Combined gross daily production was 47.6 Mbopd, 20% lower year-over-year due to the drone strike.

• Company net daily production was 18.0 Mbopd, up 6% year-over-year, reflecting increased working interest in Atrush.