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ShaMaran Petroleum (TSE:SNM)
:SNM
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ShaMaran Petroleum (SNM) AI Stock Analysis

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TSE:SNM

ShaMaran Petroleum

(SNM)

Rating:73Outperform
Price Target:
C$0.50
▲(127.27%Upside)
ShaMaran Petroleum's strong financial performance and strategic corporate actions significantly bolster its overall score. Positive technical analysis supports potential growth, and attractive valuation enhances investment appeal. However, careful attention is needed for potential overbought technical signals and liability management.

ShaMaran Petroleum (SNM) vs. iShares MSCI Canada ETF (EWC)

ShaMaran Petroleum Business Overview & Revenue Model

Company DescriptionShaMaran Petroleum Corp., together with its subsidiaries, engages in the exploration and development of oil and gas. The company holds a 27.6% interest in the Atrush Block production sharing contract, which covers an area of 269 square kilometers located in the Kurdistan region of Iraq. It also provides technical and administration services. ShaMaran Petroleum Corp. was incorporated in 1991 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyShaMaran Petroleum generates revenue primarily through the sale of crude oil extracted from its exploration and development operations in the Kurdistan Region of Iraq. The company's revenue model depends on the successful exploration, drilling, and production of oil, which is then sold to international markets. Key revenue streams include production sharing contracts (PSCs) with the Kurdistan Regional Government, which outline the division of revenues generated from oil sales between the government and the company. Additionally, strategic partnerships with other oil and gas companies help to mitigate risks and optimize operational efficiencies, further contributing to the company's earnings. External factors such as global oil prices and regional geopolitical stability also play significant roles in influencing the company's financial performance.

ShaMaran Petroleum Financial Statement Overview

Summary
ShaMaran Petroleum demonstrates strong financial performance with impressive profitability improvements and robust cash flow generation. Key strengths include significant revenue growth, efficient equity utilization, and solid cash management. However, there are slight pressures on EBIT margins and the need for careful liability management.
Income Statement
75
Positive
ShaMaran Petroleum shows a strong recovery in profitability with a notable gross profit margin of 39.9% and a net profit margin of 66.5% in the TTM (Trailing-Twelve-Months). Revenue growth is robust at 12.1% from the previous annual report. However, EBIT margin has slightly decreased to 28.3% from the prior year. Overall, the company demonstrates solid revenue growth and improved profitability, although slight pressure on operating margins is observed.
Balance Sheet
68
Positive
The company's balance sheet indicates a moderate debt-to-equity ratio of 0.85, suggesting a balanced leverage position. The equity ratio stands at 47.4%, showing significant equity strength. Return on equity (ROE) is impressive at 36.7% in the TTM, indicating efficient use of equity. Despite improvements, the company must manage its liabilities carefully to maintain financial stability.
Cash Flow
80
Positive
Cash flow analysis reveals a strong free cash flow growth of 17.7% in the TTM, highlighting effective capital management. Operating cash flow to net income ratio is 1.37, underscoring solid cash generation relative to net earnings. Free cash flow to net income ratio is also strong at 1.29, indicating robust cash flow generation capabilities. The company demonstrates excellent cash flow management, contributing positively to its overall financial health.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue109.39M82.89M176.66M102.32M56.67M
Gross Profit43.28M30.52M105.94M49.89M7.11M
EBITDA150.66M37.19M198.49M69.16M-98.35M
Net Income82.22M-26.71M114.96M13.38M-144.43M
Balance Sheet
Total Assets494.69M450.41M498.69M368.46M243.37M
Cash, Cash Equivalents and Short-Term Investments76.79M48.88M69.27M43.59M16.97M
Total Debt215.19M273.98M275.31M302.80M207.82M
Total Liabilities271.49M310.98M335.00M349.93M239.71M
Stockholders Equity223.20M139.43M163.69M18.54M3.67M
Cash Flow
Free Cash Flow89.20M12.44M79.44M49.68M3.96M
Operating Cash Flow97.97M40.48M105.28M63.90M12.86M
Investing Cash Flow-4.05M-22.28M-123.69M9.70M201.00K
Financing Cash Flow-89.10M-52.26M-47.48M69.75M-147.00K

ShaMaran Petroleum Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.22
Price Trends
50DMA
0.20
Positive
100DMA
0.20
Positive
200DMA
0.16
Positive
Market Momentum
MACD
<0.01
Positive
RSI
51.88
Neutral
STOCH
58.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SNM, the sentiment is Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SNM.

ShaMaran Petroleum Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$630.13M5.6043.82%104.07%
44
Neutral
AU$1.45B-6.96-23.02%8.08%5.33%-26.92%
$408.87M5.39-12.88%
$521.52M-5.48%1.57%
74
Outperform
C$640.21M4.7718.60%20.37%11.68%-30.95%
$707.99M43.463.68%
48
Neutral
C$431.62M-6.69%41.39%-61.36%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SNM
ShaMaran Petroleum
0.22
0.15
214.29%
OBE
Obsidian Energy
5.83
-1.49
-20.36%
ZPTAF
Surge Energy
5.22
0.66
14.47%
TSE:TAL
PetroTal Corp
0.71
0.05
7.58%
DALXF
Spartan Delta
3.41
0.53
18.40%
TSE:CEI
Coelacanth Energy, Inc.
0.81
0.05
6.58%

ShaMaran Petroleum Corporate Events

Business Operations and Strategy
ShaMaran Reports Explosion at Sarsang Facility, No Injuries Reported
Neutral
Jul 15, 2025

ShaMaran Petroleum Corp. reported an explosion at the Sarsang Block production facility in the Kurdistan Region of Iraq, operated by HKN Energy Ltd. The incident, which occurred at 7:00 AM local time, resulted in no injuries, and all personnel have been safely accounted for. Operations have been suspended while a full assessment is conducted, and the company is working closely with local authorities to manage the situation. ShaMaran and HKN emphasize their commitment to safety and environmental responsibility, promising further updates as more information becomes available.

Shareholder MeetingsBusiness Operations and Strategy
ShaMaran Petroleum Announces Successful Annual Meeting Outcomes
Positive
Jun 23, 2025

ShaMaran Petroleum Corp. announced the successful passing of all resolutions at its annual general and special meeting of shareholders. Key decisions included fixing the number of directors at five, re-electing board members, appointing PricewaterhouseCoopers LLP as auditors, and approving both the company’s stock option plan and an amendment to the deferred share unit plan. These approvals reflect strong shareholder support and are likely to impact the company’s governance and operational strategies positively.

Business Operations and StrategyFinancial Disclosures
ShaMaran Petroleum Reports Strong Q1 2025 Results Amid Pipeline Challenges
Positive
May 7, 2025

ShaMaran Petroleum Corp. reported strong financial and operational results for the first quarter of 2025, with significant increases in production, sales, and EBITDAX compared to Q1 2024. The company repaid a substantial portion of its corporate bond and secured a two-year extension on its bond maturity, enhancing its financial flexibility. Despite the ongoing impact of the Iraq-Türkiye pipeline closure, ShaMaran’s increased production and sales, particularly from the Atrush Block, have bolstered its financial performance and positioned it well for potential capital returns to shareholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025