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TOTAL PLAY ANNOUNCES 16% GROWTH IN EBITDA TO Ps.5,483 MILLION IN THE FOURTH QUARTER OF 2024

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2 years ago

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—EBITDA margin of 49%, highest level since the company issues public debt—

—Capex for the quarter was equivalent to 29% of the company’s revenue, compared to Capex equivalent to 36% of revenue a year ago—

 —The EBITDA balance, net of Capex and interest, reached Ps. 816 million in the quarter and totaled Ps. 2,763 million for the full year—

MEXICO CITY, Feb. 26, 2025 /PRNewswire/ — Total Play Telecomunicaciones, S.A.P.I. de C.V. (“Total Play”), a leading telecommunications company in Mexico, which offers internet access, pay television and telephony services, through one of the largest 100% fiber optic networks in the country, announced today financial results for the fourth quarter of 2024 and full year 2024.

“The company’s strict financial discipline, solid operational efficiency initiatives, and the strategy to moderate subscriber base growth, significantly strengthened our profitability during the period,” commented Eduardo Kuri, CEO of Total Play. “Higher revenues, combined with cost reductions, led to double-digit EBITDA growth and a five-percentage-point increase in the EBITDA margin, to 49% — the highest level since the company issues public debt. The higher EBITDA, along with Capex that accounted for 29% of quarterly revenue, generated cash flow — defined as EBITDA less Capex and interest paid — of Ps. 816 million this period, marking the fourth consecutive quarter of solid cash generation.”

“Regarding the balance sheet, the Company announced on February 7 that it successfully completed the exchange of US$821 million, representing 94.3% of its exchange offer of up to US$870 million. The agreement involved exchanging US$566 million of existing notes due 2028 for new secured notes due 2032, along with the subscription of an additional US$255 million in cash. This transaction extends our maturity profile and enhances Total Play’s liquidity, further strengthening our capital structure,” added Mr. Kuri.

Fourth quarter results

Quarterly revenue totaled Ps. 11,176 million, a 5% increase from Ps. 10,674 million in the same period last year. Total costs and expenses were Ps. 5,693 million, down 4% from Ps. 5,938 million in the prior year.

As a result, Total Play’s EBITDA increased 16% to Ps. 5,483 million from Ps. 4,736 million a year ago. The EBITDA margin for the quarter reached 49%, five percentage points higher than the same period of 2023. The company reported operating income of Ps. 973 million, compared to Ps. 605 million a year earlier.

Total Play reported a net loss of Ps. 1,519 million, compared to a loss of Ps. 1,024 million in the same quarter of 2023.

   Q4 2023 

   Q4 2024 

  Change 

Ps. 

%

Revenue from services 

$10,674

$11,176

$502

5 %

EBITDA  

$4,736

$5,483

$747

16 %

Operating income 

  

Net result 

$605 

 

$(1,024) 

$973

  

$(1,519) 

$368 

 

$(495) 

61% 

 

(48)% 

Amounts in millions of pesos.
EBITDA: Earnings before interest, taxes, depreciation, and amortization.

Revenue from services

The company’s revenue grew by 5%, driven by an 8% increase in the residential segment revenue, partially offset by a 12% decline in enterprise revenue.

Totalplay Residencial’s revenue increased to Ps. 9,655 million, up from Ps. 8,945 million a year ago, driven by a 9% rise in the number of subscribers compared to the same quarter last year. The total subscriber base reached 5,219,782 this period, including 68,996 small and medium-sized businesses. The company attributes this growth to its ability to provide technologically advanced internet services with superior stability and speed, continuous innovation in its entertainment platform, and excellence in customer service.

Compared to the previous quarter, the subscriber base grew by 95,349 users, in line with Total Play’s strategy of moderating its subscriber base growth.

The average revenue per user (ARPU) for the quarter was Ps. 607, compared to Ps. 616 a year ago.

At the end of the period, Total Play had passed 17,599,524 homes in Mexico, a minor change from 17,556,755 homes a year earlier. This is part of the company’s strategy to refrain from expanding geographic coverage, focusing instead on further strengthening its cash flow generation.

Penetration — the proportion of homes passed by Total Play that have subscribed to the company’s telecommunications services — reached 29.7% at the end of the quarter, up from 27.2% a year ago.

Revenue from the enterprise was Ps. 1,521 million, down from Ps. 1,729 million a year ago. This decrease is attributed to the completion of projects with predetermined duration, scheduled to conclude this quarter.

Costs and expenses

Total costs and expenses decreased 4%, driven by a 17% reduction in service costs, partially offset by a 3% increase in general expenses.

The decrease in costs, from Ps. 2,064 million last year to Ps. 1,708 million this year, is mainly due to lower content costs and the completion of business projects during the quarter, partially offset by higher link and membership costs.

The increase in expenses, from Ps. 3,874 million to Ps. 3,985 million, reflects higher maintenance expenses as the company’s operations grow, partially offset by lower advertising and personnel expenses.

EBITDA and net result

Total Play’s EBITDA was Ps. 5,483 million, a 16% increase compared to Ps. 4,736 million in the previous year.

The key variations below EBITDA were as follows:

A Ps. 379 million increase in depreciation and amortization, primarily due to user acquisition costs, telecommunications equipment, labor, and installation expenses.

A Ps. 228 million increase in interest expense, consistent with a higher financial debt balance, driven by the depreciation of the exchange rate on foreign currency-denominated debt and the issuance of Certificados Bursatiles, as well as an increase in the cost of debt.

A foreign exchange loss of Ps. 817 million this quarter, compared to a foreign exchange gain of Ps. 613 million in the same period last year. This was due to net liability monetary position in foreign currency, along with the depreciation of the peso against the basket of currencies in which the company’s monetary liabilities are denominated, in contrast to the appreciation of the peso in the previous year.

Total Play reported a net loss of Ps. 1,519 million, compared to a loss of Ps. 1,024 million in the same period of 2023.

Balance sheet

As of December 31, 2024, the company’s debt with cost was Ps. 56,278 million, up from Ps. 52,199 million a year ago. This increase reflects the impact of the exchange rate depreciation on foreign currency-denominated debt and the issuance of Certificados Bursatiles during the period.

Lease liabilities were Ps. 4,490 million, 21% less in comparison to Ps. 5,665 million a year ago.

The balance of cash and cash equivalents, including restricted cash held in trusts, was Ps. 5,743 million, compared to Ps. 5,754 million a year ago. As a result, the company’s net debt was Ps. 55,025 million, up from Ps. 52,110 million in the prior year.

The debt ratio — Net Debt/EBITDA for the last two annualized quarters — was 2.53x.

Total Play’s fixed assets — including accumulated investments in fiber optics, telecommunications equipment, and subscriber acquisition costs, among other assets — was Ps. 61,504 million in comparison to Ps. 61,946 million a year ago.

In a subsequent event, on January 7, the company announced an exchange offer for holders of the US$600 million Senior Notes due 2028, with interest rate of 6.375%, for New Senior Secured Notes due 2032 with interest rate of 11.125%. The agreement included a 45% additional cash subscription by Senior Notes holders, exchanged for the New Senior Secured Notes. On February 7, the company announced that it successfully completed the US$821 million exchange, which included the exchange of US$566 million in Senior Notes and the subscription of an additional US$255 million in cash.

Twelve-month results

Total revenue for 2024 was Ps. 44,530 million, a 10% increase from Ps. 40,503 million a year ago, driven by an 8% rise in residential revenue and a 19% growth in enterprise revenue.

Total costs and expenses grew 6% to Ps. 23,574 million from Ps. 22,142 million, reflecting a 4% increase in service costs and an 8% rise in expenses.

Total Play reported EBITDA of Ps. 20,956 million, up 14% from Ps. 18,361 million in the prior year, with the EBITDA margin increasing two-percentage points to 47%. Operating income grew to Ps. 3,844 million, compared to Ps. 2,316 million in 2023.

The company recorded a net loss of Ps. 7,504 million, compared to a loss of Ps. 3,147 million a year earlier.

2023

2024

   Change

Ps.

%

Revenue from services

$40,503

$44,530

$4,027

10 %

EBITDA      

$18,361

$20,956

$2,595

14 %

Operating income

 

Net result     

$2,316

 

$(3,147)

$3,844

 

$(7,504)

$1,528

 

$(4,357)

66%

 

—-

Amounts in millions of pesos.
EBITDA: Earnings before interest, taxes, depreciation, and amortization.

About Total Play

Total Play is a leading Triple Play provider in Mexico that, thanks to the widest direct-to-home fiber optic network in the country, offers entertainment and technologically advanced services with the highest quality and speed in the market. For the latest news and updates about Total Play, visit: www.totalplay.com.mx.

Total Play is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating economic value through market innovation and goods and services that improve standards of living; social value to improve community well-being; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors, and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values, and strategies for achieving rapid growth, superior results, and world-class performance.

Except for historical information, the matters discussed in this press release are concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect Total Play and its subsidiaries are presented in documents sent to the securities authorities.

Investor Relations:

Bruno Rangel

Rolando Villarreal

+ 52 (55) 1720 9167

+ 52 (55) 1720 9167

jrangelk@totalplay.com.mx

rvillarreal@totalplay.com.mx

Press Relations:

Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
lpascoe@gruposalinas.com.mx

 

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I.  DE C.V. AND SUBSIDIARIES

CONSOLIDATED QUARTERLY INCOME STATEMENTS

(Millions of Mexican pesos)

4Q23

4Q24

Change

$

%

$

%

$

%

Revenue from services

10,674

100 %

11,176

100 %

502

5 %

Cost of services

(2,064)

(19 %)

(1,708)

(15 %)

356

17 %

Gross profit

8,610

81 %

9,468

85 %

858

10 %

General expenses

(3,874)

(36 %)

(3,985)

(36 %)

(111)

(3 %)

EBITDA

4,736

44 %

5,483

49 %

747

16 %

Depreciation and amortization

(4,131)

(39 %)

(4,510)

(40 %)

(379)

(9 %)

Operating profit 

605

6 %

973

9 %

368

61 %

Financial cost:

Interest revenue

53

0 %

67

1 %

14

26 %

Change in fair value of financial instruments

(135)

(1 %)

25

0 %

160

119 %

Accrued interest expense

(1,461)

(14 %)

(1,689)

(15 %)

(228)

(16 %)

Other financial expenses

(33)

(0 %)

(194)

(2 %)

(161)

n.m. 

Foreign exchange gain (loss) – Net

613

6 %

(817)

(7 %)

(1,430)

n.m. 

(963)

(9 %)

(2,608)

(23 %)

(1,645)

(171 %)

Loss before income tax provisions

(358)

(3 %)

(1,635)

(15 %)

(1,277)

n.m. 

Income tax provision

(666)

(6 %)

116

1 %

782

117 %

Net loss for the period

(1,024)

(10 %)

(1,519)

(14 %)

(495)

(48 %)

 

 

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES

CONSOLIDATED ACCUMULATED INCOME STATEMENTS

(Millions of Mexican pesos)

Accumulated

Accumulated

12M23

12M24

Change

$

%

$

%

$

%

Revenue from services

40,503

100 %

44,530

100 %

4,027

10 %

Cost of services

(7,801)

(19 %)

(8,108)

(18 %)

(307)

(4 %)

Gross profit

32,702

81 %

36,422

82 %

3,720

11 %

General expenses

(14,341)

(35 %)

(15,466)

(35 %)

(1,125)

(8 %)

EBITDA

18,361

45 %

20,956

47 %

2,595

14 %

Depreciation and amortization

(16,045)

(40 %)

(17,112)

(38 %)

(1,067)

(7 %)

Operating profit

2,316

6 %

3,844

9 %

1,528

66 %

Financial cost:

Interest revenue

191

0 %

302

1 %

111

58 %

Change in fair value of financial instruments

(463)

(1 %)

(1,099)

(2 %)

(636)

(137 %)

Accrued interest expense

(5,528)

(14 %)

(6,345)

(14 %)

(817)

(15 %)

Other financial expenses

(506)

(1 %)

(271)

(1 %)

235

46 %

Foreign exchange gain (loss) – Net

3,384

8 %

(4,443)

(10 %)

(7,827)

n.m. 

(2,922)

(7 %)

(11,856)

(27 %)

(8,934)

n.m. 

Equity interest in net results of non-controlling entities

(19)

(0 %)

–

0 %

(19)

(100 %)

Loss before income tax provisions

(625)

(2 %)

(8,012)

(18 %)

(7,387)

n.m. 

Income tax provision

(2,522)

(6 %)

508

1 %

(3,030)

(120 %)

Net loss for the period

(3,147)

(8 %)

(7,504)

(17 %)

(4,357)

(138 %)

 

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Millions of Mexican pesos)

As of December 31,

2023

2024

Change

$

%

$

%

$

%

Assets

CURRENT ASSETS

Cash and cash equivalents

2,377

3 %

3,355

4 %

978

41 %

Restricted cash in trusts

3,377

4 %

2,388

3 %

(989)

(29 %)

Customers – net

4,426

5 %

3,319

4 %

(1,107)

(25 %)

Other accounts receivable

183

0 %

–

0 %

(183)

(100 %)

Derivative financial instruments

–

0 %

451

1 %

451

n.a.

Recoverable taxes

4,141

5 %

3,719

4 %

(422)

(10 %)

Related parties

367

0 %

251

0 %

(116)

(32 %)

Inventories

2,926

3 %

2,708

3 %

(218)

(7 %)

Prepaid expenses

529

1 %

499

1 %

(30)

(6 %)

Total current assets

18,326

21 %

16,690

20 %

(1,636)

(9 %)

NON-CURRENT ASSETS

Related parties

237

0 %

284

0 %

47

20 %

Property, plant and equipmente – Net

61,946

71 %

61,504

73 %

(442)

(1 %)

Rights-of-use assets -Net

4,780

5 %

3,184

4 %

(1,596)

(33 %)

Trademarks and other assets

2,099

2 %

2,458

3 %

359

17 %

Total non-current assets

69,062

79 %

67,430

80 %

(1,632)

(2 %)

Total assets

87,388

100 %

84,120

100 %

(3,268)

(4 %)

Liabilities and Stockholders’ Equity

SHORT-TERM LIABILITIES

Financial debt

4,573

5 %

7,846

9 %

3,273

72 %

Lease liabilities

2,338

3 %

2,508

3 %

170

7 %

Trade payables

13,373

15 %

13,746

16 %

373

3 %

Reverse factoring

2,234

3 %

1,590

2 %

(644)

(29 %)

Other payables and payable taxes

1,416

2 %

1,672

2 %

256

18 %

Related parties

1,012

1 %

1,216

1 %

204

20 %

Liabilities from contracts with customers

994

1 %

720

1 %

(274)

(28 %)

Interest payable

316

0 %

259

0 %

(57)

(18 %)

Derivative financial instruments

175

0 %

–

0 %

(175)

(100 %)

Total short-term liabilities

26,431

30 %

29,557

35 %

3,126

12 %

LONG-TERM LIABILITIES

Financial debt

47,626

54 %

48,432

58 %

806

2 %

Lease liabilities

3,327

4 %

1,982

2 %

(1,345)

(40 %)

Derivative financial instruments

1,442

2 %

–

0 %

(1,442)

(100 %)

Employee benefits

74

0 %

93

0 %

19

26 %

Deferred income tax

5,253

6 %

5,401

6 %

148

3 %

Total long-term liabilities

57,722

66 %

55,908

66 %

(1,814)

(3 %)

Total liabilities

84,153

96 %

85,465

102 %

1,312

2 %

STOCKHOLDERS’ EQUITY

3,235

4 %

(1,345)

(2 %)

(4,580)

(142 %)

Total liabilities and stockholders’ equity

87,388

100 %

84,120

100 %

(3,268)

(4 %)

 

 

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of Mexican pesos)

12th months period ended

December 31,

2023

2024

Operating activities:

Loss before income tax provision

(625)

(8,012)

Items not requiring the use of resources:

Depreciation and amortization

16,045

17,112

Employee benefits

16

23

Items related to investing or financing activities:

Accrued interest income

(191)

(302)

Accrued interest expense and other financial transactions

6,497

7,715

Unrealized exchange (gain) loss

(3,420)

4,077

Non-controlling participation

19

–

18,341

20,613

Resources (used in) generated by operating activities:

Customers and unearned revenue

1,087

832

Other receivables

52

183

Related parties, net

388

244

Taxes to be recovered

(330)

422

Inventories

(584)

218

Advance payments

379

30

Trade payables

2,403

560

Other payables

(1,021)

248

Cash flows generated by operating activities

20,715

23,350

Investing activities: 

Acquisition of property, plant and equipment

(15,627)

(12,146)

Other assets

19

(44)

Collected interest

191

302

Cash flows (used in) investing activities

(15,417)

(11,888)

Financing activities:

Loans received

6,034

(460)

Leasing cash flows

(2,650)

(2,284)

Restricted Cash in Trusts

(1,389)

988

Reverse factoring

(457)

(643)

Derivative financial instruments

(1,000)

(2,038)

Interest payment

(5,349)

(6,047)

Cahs flows used in financing activities

(4,811)

(10,484)

Net increase in cash and cash equivalents

487

978

Cash and cash equivalents at the beginning of the year 

1,890

2,377

Cash and cash equivalents at the end of the year 

2,377

3,355

 

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SOURCE Total Play Telecomunicaciones, S.A.P.I. de C.V.

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Strategic LiDAR Customer Initiates Production Orders with Sivers Semiconductors

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10 minutes ago

on

October 20, 2026

By

Shipments will begin in Q4 2026 against rolling production orders as the automotive and industrial sensing programs move into production phase in 2027

KISTA, Sweden, Oct. 20, 2026 /PRNewswire/ — Sivers Semiconductors AB (STO: SIVE), a global leader in photonics and wireless technologies, today announced that its strategic LiDAR customer has initiated production orders for its automotive and industrial sensing customers.

Sivers will supply the continuous-wave distributed feedback (CW DFB) lasers and optical amplifiers powering the customer’s LiDAR platforms, positioning the company to support growing demand as production scales.

“We are pleased to see this strategic program advance from design-win to production, with our customer placing first production orders,” said Alex McCann, Managing Director of Sivers Semiconductors’ photonics business. “This key milestone reflects confidence in our technology, our production facility and its reliability to meet the customer’s requirements for volume production. As the program scales, we expect rolling production orders placed to lead times, in line with our customer’s multi-year production forecasts.”

As announced in March 2026, the program represents a significant long-term opportunity, with estimated cumulative revenue potential of USD 53 million to USD 138 million over the customer’s product lifecycle. The opportunity comes amid strong growth in automotive LiDAR, with Yole Group projecting the global market to expand from USD 861 million in 2024 to USD 3.8 billion by 2030, representing a compound annual growth rate of 28 percent. Beyond automotive applications, LiDAR is gaining traction in industrial markets, including robotics and autonomous machinery.

For more information, please visit https://www.sivers-semiconductors.com/. 

About Sivers Semiconductors

We are Critical Enablers of a Greener Data Economy with Energy Efficient Photonics & Wireless Solutions. Our differentiated high-precision laser and RF beamformer technologies help our customers in key markets such as AI Data Centers, SATCOM, Defense, and Telecom solve essential performance challenges while enabling a much greener footprint. Visit us at: www.sivers-semiconductors.com.

Forward-looking statements

This press release contains forward-looking statements, including statements regarding expected orders, the timing and scale of the customer’s production ramp, deliveries, market development and revenue potential. Such statements are based on current expectations and are subject to risks and uncertainties, including the customer’s production plans, end-market demand and Sivers’ manufacturing capacity, which could cause actual results to differ materially. Sivers undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Media Contact
Tyler Weiland 
Shelton Group
+1-972-571-7834
tweiland@sheltongroup.com

Company Contact
Heine Thorsgaard
CFO 
ir@sivers-semiconductors.com

This information was brought to you by Cision http://news.cision.com

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SOURCE Sivers Semiconductors

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Segway Powersports Returns to EICMA for Fifth Year with Model Year 2027 Lineup and New Off-Road Innovations

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10 minutes ago

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October 20, 2026

By

MILAN, Oct. 20, 2026 /PRNewswire/ — Segway Powersports is heading back to EICMA for fifth appearance, with new off-road innovations that reflect its “Fear No Place” philosophy. On November 3, the brand will unveil its Model Year 2027 (MY2027) lineup at a product launch in Milan. From upgraded ATVs to the debut of its new flagship two-row UTV and next-generation of iFUN system connected technology, the preview promises exciting developments in design, performance and the riding experience.

Segway Powersports will occupy approximately 880 square meters at EICMA 2026, setting the stage for its upcoming product launch:

Location: Hall 14, Booth I06Launch Date & Time: November 3 at 3:30 p.m. (Milan local time)

For Segway Powersports, off-road riding has always been about more than reaching a destination. It’s about taking on unfamiliar terrain with confidence and discovering new possibilities along the way. As Segway’s professional-grade, high-performance powersports line for global markets, the brand is built around the qualities riders depend on when conditions get tough: strong performance, reliable durability and confident handling.

Expertise, the pursuit of excellence and a spirit of exploration are at the heart of Segway Powersports. Together, these values shape the brand’s “Fear No Place” philosophy and its drive to push riding capabilities further. EICMA offers another opportunity to bring that philosophy into sharper focus and strengthen the brand’s identity in the global powersports market.

Beyond performance, Segway Powersports is forging a distinct visual identity anchored by Rider Red——its signature color-paired with the dedicated Segway Powersports logo. Consistently applied across vehicle designs and brand materials, the color creates a bold, instantly recognizable brand presence.

At this year’s EICMA, the MY2027 lineup will take center stage. Fresh designs, stronger performance and a more engaging riding experience are the key upgrades to look forward to.  Meanwhile, the new flagship two-row UTV will make its Milan debut with an all-weather cabin comfort concept.

Smart connectivity will be another highlight. The next-generation connect system iFUN will make interactions between riders and their vehicles smarter and more intuitive.

With the upcoming launch, Segway Powersports aims to offer a more complete off-road lineup for a wider range of terrains and riding needs. From trail adventures and outings with companions to practical tasks, the expanded range gives riders more ways to make the most of every journey.

The Segway Powersports booth will also feature a special highlight: a race-prepared vehicle that claimed second place in the SSV class at the 2026 European Bajas Championship. Visitors can get a closer look at the race vehicle and a taste of competitive off-road racing.

Media, dealers, partners and consumers are invited to follow the Segway Powersports product launch on November 3 at 3:30 p.m. (Milan local time) in Hall 14, Booth I06 and discover what’s next for Segway Powersports.

About Segway Powersports

Segway Powersports is Segway’s professional-grade, high-performance powersports line for global markets. Guided by expertise, the pursuit of excellence and a spirit of exploration, the brand develops off-road vehicles that combine powerful performance, strong torque, reliable durability and responsive handling. Built for diverse and demanding terrain, its vehicles give riders the confidence to take on new challenges, reflecting the brand’s “Fear No Place” philosophy.

Contact: media@powersports.segway.com 

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ShaMaran Announces Investment in Iraq and Contemplated Bond Issuance

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October 20, 2026

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HAMILTON, Bermuda, Oct. 20, 2026 /PRNewswire/ — ShaMaran Petroleum Ltd. (“ShaMaran” or the “Company”) (Euronext Growth Oslo: SNM) (Nasdaq First North Stockholm: SNM) announces the expansion of the Company’s strategic collaboration with HKN Energy (“HKN”) into Federal Iraq. Building on their joint ventures across the Atrush and Sarsang oil fields in the Kurdistan Region of Iraq, HKN and ShaMaran are extending their cooperation into Federal Iraq through the Hamrin oil development and production contract (“DPC”). PDF Version 

As part of this expansion, ShaMaran will have a 25% shareholding in HKN Hamrin Ltd. (the “Hamrin JV”), the joint venture company holding 100% of the Hamrin DPC. HKN, as the operator of the field, will leverage its operational expertise and established relationship with ShaMaran to advance a major long-term development program.

The Hamrin field is a large discovered and producing oil field previously operated by North Oil Company, an Iraqi state-owned oil company. HKN and ShaMaran will further develop the field with the aim of increasing production above the current 20 Mbopd to maximize recovery over the 25-year term of the DPC. The operator’s and management’s current estimate of remaining gross reserves and resources is in the range of 500 million to one billion barrels. The initial phase of development will target lifting field production to approximately 60 Mbopd by 2028. Further phases of development could target more than doubling those initial production levels, with currently estimated capex for later phases in the range of $2-3 per incremental barrel.

Garrett Soden, Chief Executive Officer of ShaMaran, commented, “The Hamrin investment is a natural extension of our cooperation with HKN, the operator of our two existing assets in the Kurdistan Region of Iraq. The Hamrin field in Federal Iraq is complementary to our existing Kurdistan production and reserves profile, and we expect material synergies from having the same team operate all three assets. Together with HKN, we are committed to increasing Hamrin production to create significant value for Iraq and our shareholders.”

The Hamrin JV farm-in consideration comprises a $35 million carry by ShaMaran of HKN’s share of initial costs in the Hamrin co-venture, with a further $15 million payable out of future cash flow once ShaMaran has recovered its initial investment and carry in full.

Financing – Contemplated Bond Issuance

Elvis Pellumbi, Chief Financial Officer of ShaMaran, commented, “On the back of the attractive Hamrin investment, we are looking to raise a new bond to better reflect the improved credit profile of our expanded asset portfolio, fund Hamrin growth capex and reduce interest costs. We see increased near-term cash flow from our existing assets due to the tri-party export agreement coupled with an enhanced long-term outlook from the addition of future Hamrin cash flows.”

ShaMaran has mandated Pareto Securities AS to be sole bookrunner and manager for a contemplated bond of up to $200 million in order to refinance its existing 2029 bond (ISIN NO0011057622) that has approximately $144 million currently outstanding. The proceeds from the new bond will be used to fund ShaMaran’s share of the Hamrin investment and for general corporate purposes. The Company will host fixed income investor meetings, and a bond issuance may follow subject to market conditions and acceptable terms. It is the Company’s intention to exercise the applicable call option in the existing bond upon successful issuance of the contemplated new bond.

ShaMaran to combine with Gulf Keystone Petroleum Ltd. (“Gulf Keystone”)

ShaMaran and Gulf Keystone today announced that they have signed a merger agreement and a combination agreement to combine their businesses and create a platform for growth in the Kurdistan Region of Iraq and Federal Iraq (the “Transaction”). A copy of the press release can be found at www.shamaranpetroleum.com.

About ShaMaran Petroleum Ltd.

ShaMaran is an independent oil and gas company with non-operated stakes in three fields in Iraq. The Company indirectly holds a 50% working interest in the Atrush Block and an 18% working interest in the Sarsang Block, both in the Kurdistan Region of Iraq. The Company will also hold a 25% interest in the Hamrin JV, which holds the Hamrin DPC in Federal Iraq. The Company is listed in Oslo on Euronext Growth and in Stockholm on Nasdaq First North (ticker “SNM”). ShaMaran is part of the Lundin Group of Companies.

Elvis Pellumbi, CFO, +41 22 560 8600, info@shamaranpetroleum.com, www.shamaranpetroleum.com

This information is information that ShaMaran Petroleum Ltd. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 8:00 CET on October 20, 2026.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

The Company’s certified advisor on Nasdaq First North Growth Market is FNCA Sweden AB.

Forward-Looking Statements

Matters discussed in this announcement may constitute forward-looking statements. 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.

 

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