ShaMaran Reports First Quarter 2024 Results
Corporate Highlights:
- The closure of the Iraq-Türkiye ("ITP") 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; - ShaMaran generated
$18.3 million in operating cash flow during the quarter from local sales, matching Q1 2023 operating cash flow (the last quarter prior to the ITP shutdown); - The Q1 EBITDAX of
$14.2 million is higher than the combined EBITDAX of the business in the previous three quarters since the ITP shutdown, further highlighting the Company's progress in generating strong cash flow through local sales; and - Both Sarsang and Atrush delivered the highest quarterly production since the ITP shutdown, and we expect to increase production in both assets during the remainder of the year.
Financial Highlights:
|
Three months ended |
|
USD Thousands |
2024 |
2023 |
Revenue |
22,588 |
43,380 |
Gross margin on oil sales |
6,840 |
22,098 |
Net result |
(493) |
9,599 |
Cash flow from operations |
18,315 |
18,266 |
EBITDAX |
14,234 |
30,227 |
___________________ |
1 EBITDAX is a non-IFRS financial measure. Refer to the MD&A for more information. |
- In Q1 2024, average gross daily oil production from Atrush and Sarsang combined was 57,400 bopd (66,800 bopd in Q1 2023), 14% lower than Q1 2023, while lifting costs were 42% lower than Q1 2023, primarily due to the continued focus on savings since the ITP closure;
- Q1 2024 oil sales to the
Kurdistan local market averaged a net oil price of$36.49 /bbl ($60.53 /bbl in Q1 2023) and generated revenues to the Company of$22.6 million , 48% lower revenue than Q1 2023, mainly due to the lower net oil price in the local sales market; - ShaMaran generated
$17.5 million of free cash flow before debt service2 in Q1 2024 ($6.7 million in Q1 2023) as tight cost and capital expenditure controls helped optimize cash flow during the quarter; - At
March 31, 2024 , the Company had cash of$71.6 million (including restricted cash of$25.3 million ) and gross debt of$270.6 million (including the$255 million bond and$15.6 million related-party loan). Net debt3 was$193.1 million (including$5.9 million in ShaMaran 2025 bonds held by the Company); and - At
May 7, 2024 , the Company had cash of$80.9 million (including restricted cash of$25.3 million ) and gross debt of$270.6 million (including the$255 million bond and$15.6 million related-party loan). Net debt was$183.8 million (including$5.9 million in ShaMaran 2025 bonds held by the Company).
Operational Highlights:
|
Three months ended |
Three months ended |
||
|
2024 |
2023 |
2023 |
|
Average daily oil production – gross 100% field (Mbopd) |
|
|
|
|
- Atrush |
|
20.0 |
30.6 |
9.0 |
- Sarsang |
|
37.4 |
36.2 |
36.4 |
Total |
|
57.4 |
66.8 |
45.4 |
Oil sales – gross 100% field (Mbbl) |
|
|
|
|
- Atrush |
|
1,817 |
2,729 |
829 |
- Sarsang |
|
3,345 |
3,153 |
3,519 |
Total |
|
5,162 |
5,882 |
4,348 |
- At Atrush, following a period of curtailment to a maximum of 10,000 bopd for most of
December 2023 andJanuary 2024 , production increased to 20,000 bopd at the end ofJanuary 2024 . Production sinceFebruary 2024 remains steady at ~25,000 bopd; and - At Sarsang, well and processing capacity has been optimized to meet local sales demand and maximize field cash generation since the ITP closure, with two of the four available production facilities maintained online for an average production rate of 37,400 bopd during Q1 2024. Following a decrease during facilities maintenance in
April 2024 , production has partially recovered, with further increases towards the Q1 2024 levels expected in the coming weeks.
Abbreviations:
bbl |
Barrels of crude oil |
bopd |
Barrels of crude oil per day |
Mbbl |
Thousand barrels of crude oil |
Mbopd |
Thousand barrels of crude oil per day |
_______________________ |
2 Free cash flow before debt service is a non-IFRS financial measure. Refer to the MD&A for more information. |
3 Net debt is a non-IFRS financial measure. Refer to the MD&A for more information. |
ShaMaran plans to publish its financial statements for the six months ending
About
ShaMaran is a Canadian independent oil and gas company focused on the
Important Information
ShaMaran is obliged to make this information public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the agency of the contact person set out below on
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Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or the Company's future performance, business prospects and opportunities, which are based on assumptions of management.
The use of any of the words "will", "expected", "planned" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of certain future events. Certain information set forth in this news release contains forward-looking statements including, but not limited to, expectations and timing of the ITP reopening and its effect on the Company, expected increase in production in Sarsang and Atrush and the impact of the anticipated closing of a previously announced transaction on the Company's indirect working interest in the Atrush Block. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, including results, timing and costs of seismic, drilling and development related activity in the Company's area of operations, uninsured risks, regulatory changes, defects in title, availability of funds required to participate in the development activities, availability of financing on reasonable terms, availability of materials and equipment on satisfactory terms, outcome of commercial negotiations with government and other regulatory authorities, timeliness of government or other regulatory approvals, actual performance of facilities, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in the Company's annual information form for the year ended
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