ShaMaran Petroleum (SNM) AI Stock Analysis

• Market Cap: C$554.96M
• Dividend Yield: N/A
• Average Volume (3M): 329.82K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 1.23
• Revenue Growth: 33.95%
• EPS Growth: N/A
• Country: CA
• Employees: 9
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.04
• Shares Outstanding: 2,845,961,400
• 10 Day Avg. Volume: 239,315
• 30 Day Avg. Volume: 329,821
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.13
• Price to Cash Flow (P/CF): 3.30
• P/FCF Ratio: 3.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ShaMaran Petroleum's overall score is driven by strong financial performance and strategic corporate actions, such as debt management and bond amendments. While the technical indicators show bullish momentum, the company's high debt levels and lack of dividend yield are areas to monitor. Overall, the stock is positioned well due to its attractive valuation and improved financial health.

ShaMaran Petroleum Business Overview & Revenue Model

Company Description

ShaMaran Petroleum Corp. (SNM) is a Canadian oil and gas company focused on the exploration, development, and production of oil in the Kurdistan region of Iraq. The company operates primarily through its stake in the Atrush oil field, which is one of the significant assets in the region. ShaMaran aims to leverage its expertise and strategic partnerships to maximize the value of its assets and ensure sustainable growth in the energy sector.

How the Company Makes Money

ShaMaran Petroleum generates its revenue primarily through the sale of crude oil extracted from its interest in the Atrush oil field. The company's revenue model is based on the production and sale of oil, where the earnings are influenced by global oil prices, production volumes, and operational efficiencies. Key revenue streams include the sales agreements with local and international buyers, as well as potential joint ventures or partnerships with other oil and gas companies to enhance production capabilities and market reach. The company's financial performance is also impacted by its ability to manage exploration and production costs, regulatory compliance, and geopolitical factors in the Kurdistan region.

ShaMaran Petroleum Financial Statement Overview

Summary

ShaMaran Petroleum has shown a significant improvement in profitability and revenue growth with a strong gross profit margin and a dramatic improvement in net profit margin. The balance sheet indicates moderate stability with reduced leverage, while cash flow statements show robust free cash flow growth. However, historical volatility and high debt levels remain concerns.

Income Statement

ShaMaran Petroleum's income statement shows a significant improvement in profitability and revenue growth. The gross profit margin has increased to approximately 39.6% from the previous year's 36.8%, indicating effective cost management and strong sales performance. Net profit margin improved dramatically to 75.2%, reversing from a loss in the previous year, primarily due to a significant increase in net income. The EBIT margin improved to 33.2% from 4.8%, and the EBITDA margin is robust at 140.5%. While historical volatility in revenues and net income remains a concern, the recent trend is positive, suggesting a recovery in operational efficiency.

Balance Sheet

The balance sheet indicates moderate financial stability with a debt-to-equity ratio of 0.96, showing a reduction in leverage compared to previous years. Stockholders' equity has improved significantly, reflecting better financial health. The equity ratio is approximately 45.1%, indicating a strong equity position relative to total assets. However, total debt remains high, posing a potential risk if earnings do not continue to strengthen.

Cash Flow

ShaMaran Petroleum's cash flow statement displays strong free cash flow growth, with a notable increase from the previous year, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient conversion of income to cash. The company also maintains a healthy free cash flow to net income ratio, reinforcing its ability to manage capital expenditures and finance operations without over-relying on external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
109.39M	82.89M	176.66M	102.32M	56.67M
	Gross Profit
43.28M	30.52M	105.94M	49.89M	7.11M
	EBIT
36.31M	4.00M	89.60M	42.24M	-1.81M
	EBITDA
153.71M	37.19M	137.34M	68.36M	-98.35M
	Net Income Common Stockholders
82.22M	-26.71M	114.96M	13.38M	-144.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.79M	48.88M	69.27M	43.59M	16.97M
	Total Assets
494.69M	450.41M	498.69M	368.46M	243.37M
	Total Debt
215.19M	273.98M	275.31M	302.80M	207.82M
	Net Debt
138.40M	225.10M	206.04M	259.21M	190.85M
	Total Liabilities
271.49M	310.98M	335.00M	349.93M	239.71M
	Stockholders Equity
223.20M	139.43M	163.69M	18.54M	3.67M
Cash Flow		Free Cash Flow
89.20M	12.44M	79.44M	49.68M	3.96M
	Operating Cash Flow
97.97M	40.48M	105.28M	63.90M	12.86M
	Investing Cash Flow
-4.05M	-22.28M	-123.69M	9.70M	201.00K
	Financing Cash Flow
-89.10M	-52.26M	-47.48M	69.75M	-147.00K

ShaMaran Petroleum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SNM, the sentiment is Negative. The current price of 0.19 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.20, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SNM.

ShaMaran Petroleum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATH	77 Outperform	$2.26B	5.20	28.01%	―	13.46%	―
SNM	76 Outperform	C$554.96M	4.80	44.54%	―	33.95%	―
POU	73 Outperform	$2.29B	6.93	9.38%	27.79%	3.08%	-30.22%
MEG	73 Outperform	C$4.98B	10.24	11.22%	1.56%	-8.92%	-5.46%
BTE	63 Neutral	$1.71B	7.50	5.99%	4.03%	22.71%	―
Sector *	57 Neutral	$7.56B	4.34	-4.83%	6.50%	-0.19%	-64.60%

ShaMaran Petroleum Corporate Events

ShaMaran Petroleum Secures Bondholder Approval for Key Amendments

ShaMaran Petroleum Corp. has announced that a significant majority of its bondholders have approved amendments to its 12% senior unsecured bond, extending its maturity by two years to July 2029 and converting the mandatory quarterly cash sweep to voluntary. This approval is expected to provide ShaMaran with greater financial flexibility, potentially enhancing its operational stability and strategic positioning in the Kurdistan oil and gas sector.

Spark’s Take on TSE:SNM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SNM is a Outperform.

ShaMaran Petroleum earns a solid score due to strong financial performance, bullish technical indicators, and strategic corporate actions that enhance growth prospects. Although the company faces challenges with high debt, recent efforts to manage liabilities and improve profitability are promising.

To see Spark’s full report on TSE:SNM stock, click here.

ShaMaran Petroleum Announces Partial Bond Repayment to Reduce Debt

ShaMaran Petroleum Corp. announced a partial repayment of its 12% senior unsecured bond, amounting to approximately $29.4 million, scheduled for April 30, 2025. This repayment will reduce the bond’s outstanding amount by 28% compared to the end of 2024, leaving a total of $143.8 million outstanding. The company’s cash reserves before the repayment stood at $79.4 million, and the pro forma net debt will be approximately $109.4 million. This financial maneuver is part of ShaMaran’s strategy to manage its debt obligations and improve its financial standing.

Spark’s Take on TSE:SNM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SNM is a Outperform.

ShaMaran Petroleum earns a solid overall score of 71, driven primarily by strong financial performance and strategic corporate actions that enhance its growth trajectory. While technical analysis indicates bullish momentum, caution is warranted due to potential overbought conditions. The company’s valuation appears attractive, though the absence of a dividend yield may be a downside for some investors.

To see Spark’s full report on TSE:SNM stock, click here.

ShaMaran Proposes Amendments to Bond Terms for Greater Flexibility

ShaMaran Petroleum Corp. has issued a summons for a written resolution to amend its outstanding 12% senior unsecured bond due in July 2027. The proposed amendments include converting the mandatory quarterly cash sweep to voluntary and extending the bond’s maturity by two years to July 2029. The company has received strong support from a majority of bondholders for this proposal, which aims to provide greater flexibility for capital returns to shareholders. This move reflects ShaMaran’s improved credit profile following recent mergers and acquisitions and significant deleveraging.

ShaMaran Petroleum Reports Transformative 2024 with Increased Production and Revenue

ShaMaran Petroleum Corp. reported a transformative year in 2024, marked by a significant increase in production and financial performance. The company completed a strategic acquisition, doubling its working interest production to over 21,000 barrels of oil per day and achieving a reserves replacement ratio of over 200%. ShaMaran also extended its bond maturity and reduced its debt, setting a clear path for potential capital returns to shareholders. Despite the continued closure of the Iraq-Türkiye pipeline impacting operations, the company saw substantial revenue growth due to increased local sales and production capacity.

ShaMaran Petroleum Announces Partial Bond Repayment to Strengthen Financial Position

ShaMaran Petroleum Corp. announced a partial repayment of its 12% senior unsecured bond, amounting to approximately $26.8 million, scheduled for January 30, 2025. Following this repayment, the outstanding bond amount will be reduced to approximately $173.1 million. This financial adjustment aims to manage the company’s net debt, which will stand at around $130.3 million post-repayment. This move reflects ShaMaran’s strategic steps towards strengthening its financial position and managing its liabilities effectively.