ShaMaran Petroleum (SNM) AI Stock Analysis

• Market Cap: C$658.77M
• Dividend Yield: N/A
• Average Volume (3M): 95.93K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.25
• Revenue Growth: 104.07%
• EPS Growth: N/A
• Country: CA
• Employees: 9
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): <0.01
• Shares Outstanding: 2,864,230,500
• 10 Day Avg. Volume: 146,768
• 30 Day Avg. Volume: 95,933
• PEG Ratio: 0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.79
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: 0.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: C$0.50 ▲(127.27%Upside)

ShaMaran Petroleum showcases a robust financial profile with strong profitability and cash flow management, coupled with strategic corporate actions that enhance financial flexibility. Although technical indicators signal a potential overbought condition, the company's attractive valuation and supportive corporate events provide a solid foundation for future growth.

ShaMaran Petroleum Business Overview & Revenue Model

Company Description

ShaMaran Petroleum Corp. (SNM) is an oil and gas company primarily engaged in the exploration and development of oil and gas resources in the Kurdistan Region of Iraq. The company focuses on the Atrush Block, one of the region's significant oil fields, where it holds a working interest. ShaMaran leverages its technical expertise and regional partnerships to explore and extract hydrocarbons, contributing to the energy supply in the area.

How the Company Makes Money

ShaMaran Petroleum generates revenue primarily through the sale of crude oil extracted from its operations in the Atrush Block. The company benefits from production sharing contracts, where it collaborates with regional governments and partners, ensuring a share of the oil produced. Key revenue streams include the sale of oil to international markets, which is priced based on global benchmarks. ShaMaran's earnings are influenced by factors such as oil price fluctuations, production levels, and operational efficiency. Additionally, strategic partnerships and agreements with regional authorities play a crucial role in the company's ability to capitalize on its resource base and access necessary infrastructure for transporting and selling its oil.

ShaMaran Petroleum Financial Statement Overview

Summary

ShaMaran Petroleum exhibits strong financial performance, with significant profitability improvements and robust cash flow generation. Revenue growth, efficient equity utilization, and solid cash management are key strengths. However, slight pressures on EBIT margins and a need for careful liability management remain areas to watch.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.69M	109.39M	82.89M	176.66M	102.32M	56.67M
Gross Profit	48.91M	43.28M	30.52M	105.94M	49.89M	7.11M
EBITDA	154.74M	150.66M	37.19M	198.49M	69.16M	-98.35M
Net Income	81.60M	82.22M	-26.71M	114.96M	13.38M	-144.43M
Balance Sheet
Total Assets	469.83M	494.69M	450.41M	498.69M	368.46M	243.37M
Cash, Cash Equivalents and Short-Term Investments	79.32M	76.79M	48.88M	69.27M	43.59M	16.97M
Total Debt	188.75M	215.19M	273.98M	275.31M	302.80M	207.82M
Total Liabilities	247.33M	271.49M	310.98M	335.00M	349.93M	239.71M
Stockholders Equity	222.50M	223.20M	139.43M	163.69M	18.54M	3.67M
Cash Flow
Free Cash Flow	104.98M	89.20M	12.44M	79.44M	49.68M	3.96M
Operating Cash Flow	111.68M	97.97M	40.48M	105.28M	63.90M	12.86M
Investing Cash Flow	2.51M	-4.05M	-22.28M	-123.69M	9.70M	201.00K
Financing Cash Flow	-106.72M	-89.10M	-52.26M	-47.48M	69.75M	-147.00K

ShaMaran Petroleum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.19, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.14 is Negative, neither overbought nor oversold. The STOCH value of 81.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SNM.

ShaMaran Petroleum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNM	76 Outperform	C$658.77M	5.47	43.82%	―	104.07%	―
TAL	74 Outperform	C$631.38M	4.77	18.60%	12.12%	11.68%	-30.95%
SDE	65 Neutral	$766.23M	35.78	3.68%	―	-27.80%	-96.88%
CEI	54 Neutral	C$446.36M	―	-6.69%	―	41.39%	-61.36%
SGY	52 Neutral	$604.89M	―	-5.48%	8.54%	-2.37%	-421.59%
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%
OBE	50 Neutral	$545.39M	5.64	-12.88%	―	11.92%	-304.98%

ShaMaran Petroleum Corporate Events

ShaMaran Petroleum Announces Successful Annual Meeting Outcomes

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.

ShaMaran Petroleum Reports Strong Q1 2025 Results Amid Pipeline Challenges

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.

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.

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.