VANCOUVER, BC, Aug. 6, 2025 /CNW/ – ShaMaran Petroleum Corp. (“ShaMaran” or the “Company”) (TSXV:SNM) (Nasdaq First North: SNM) today released its financial and operating results and related management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2025. View PDF
Garrett Soden, President and CEO of ShaMaran, commented: “We remain focused on generating strong cash flow and accelerating debt repayment, as shown in the Q2 2025 results. Over the last year, we have reduced the Company’s net debt1 by almost 50%, providing a solid base for potential future shareholder distributions. We continue to work with industry partners and the host government towards a lasting commercial solution for the Iraq-Türkiye pipeline reopening.”
Corporate Highlights:
- On April 11, 2025, the Company announced bondholder approval of certain amendments to the terms of the Company’s outstanding bond. The new amendments became effective on May 2, 2025, and included converting the mandatory cash sweep to voluntary and extending the maturity by two years to July 2029;
- On April 30, 2025, the Company repaid $29.4 million of the corporate bond (17% of the outstanding amount) at par pro rata to all bondholders. The total amount outstanding of the Company’s corporate bond at June 30, 2025, was $143.8 million;
- In May 2025, the Company repaid $5.0 million (32% of the outstanding amount) of the related-party loan (as permitted under the recent amendments to the bond terms) in order to simplify the balance sheet and reduce financing costs. The total amount outstanding of the loan at June 30, 2025, was $10.6 million; and
- The closure of the Iraq-Türkiye pipeline since March 25, 2023, continues to have a material impact on ShaMaran’s operations and financial results. The Company is actively engaging with the relevant parties to resume pipeline exports.
Financial Highlights:
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Three months ended June 30 |
Six months ended June 30 |
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|
USD Thousands |
2025 |
2024 |
2025 |
2024 |
|
Revenue |
35,385 |
22,630 |
71,270 |
45,218 |
|
Gross margin on oil sales |
12,775 |
7,405 |
25,251 |
14,245 |
|
Free cash flow before debt service2 |
27,943 |
16,785 |
65,723 |
34,288 |
|
Adjusted EBITDAX3 |
24,850 |
15,594 |
49,315 |
30,825 |
|
1 |
Net debt is a non-IFRS financial measure. Refer to “Non-IFRS Accounting Standards Measures” below for more information. |
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2 |
Free cash flow before debt service is a non-IFRS financial measure. Refer to “Non-IFRS Accounting Standards Measures” below for more information. |
|
3 |
Adjusted EBITDAX is a non-IFRS financial measure. Refer to “Non-IFRS Accounting Standards Measures” below for more information. |
- Revenue in Q2 2025 was $35.4 million (56% higher than the $22.6 million in Q2 2024) due to higher local oil sales and the increased working interest in the Atrush Block from August 7, 2024;
- Gross margin on oil sales in Q2 2025 was $12.8 million (73% higher than the $7.4 million in Q2 2024) due to increased production and local sales and the higher working interest in the Atrush Block;
- ShaMaran generated $27.9 million of free cash flow before debt service² in Q2 2025 (66% higher than the $16.8 million in Q1 2024);
- Adjusted EBITDAX³ in Q2 2025 was $24.9 million (59% higher than the $15.6 million in Q2 2024);
- At June 30, 2025, the Company had cash of $67.2 million and gross debt of $154.4 million (including the $143.8 million corporate bond and $10.6 million related-party loan). Net debt¹ was $87.2 million; and
- At August 6, 2025, after payment of the quarterly interest on July 30, 2025, the Company has cash of $64.1 million and gross debt of $154.4 million (including the $143.8 million corporate bond and $10.6 million related-party loan). Net debt¹ is $90.3 million.
Operational Highlights:
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Three months ended June 30 |
Six months ended June 30 |
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2025 |
2024 |
2025 |
2024 |
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Average daily oil production – gross 100% field (Mbopd) |
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|
– Atrush |
35.1 |
25.1 |
35.2 |
22.5 |
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– Sarsang |
28.7 |
29.7 |
29.3 |
33.6 |
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Total |
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