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Maha Energy
Interim / Quarterly Report • Aug 19, 2025
3170_ir_2025-08-19_f14dcc34-9520-4408-87b4-46db0fe09084.pdf
Interim / Quarterly Report
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Q2 Report for the SIX MONTHS ENDED 30 June 2025 (org number: 559018-9543)
Highlights
(All amounts are in thousands of US dollars, unless otherwise noted. Comparisons are made with the same period last year.)
Second Quarter 2025
- Total cash balance amounted to TUSD 16,194 (including restricted cash of TUSD 3,176).
- Liquid investments of TUSD 71,847, mainly represented by Brava Energia shares and debentures issued by 3R Offshore.
- Net finance results in the period amounted to TUSD (17,728), including an unrealized net loss on Brava Energia's shares of TUSD (18,100).
- The net result from continuing operations amounted to TUSD (20,216).
- During Q2 2025, the sale of Maha's working interest in Block 70's was completed with the payment of the purchase price amounting TUSD 1,300, net of working capital adjustment.
- During Q2 2025, the Company repurchased a total of 1,284,000 own shares. The Board of Directors resolved in June 2025 to initiate a new share buy-back program.
- Daily oil production from the Illinois Basin decreased 20% to 258 BOEPD following natural decline in producing wells, routine maintenance and flooding, which caused some wells to be temporarily shut in.
- Production costs for continuing operations decreased by 33%. This reduction reflects the Company's ongoing efforts to optimize operations and reduce costs, resulting in improved operational efficiency.
- Operating netback of TUSD 715 decreased 35% following the decreased production and lower oil prices, which was mitigated by lower production costs.
Subsequent Events
- An Extraordinary General Meeting was held in July 2025 and resolved to amend the Company's business name and to adjust the object of the Company's business to own and manage movable and immovable property and conduct other activities compatible therewith.
- In July, Maha entered into a loan agreement of up to USD 100 million, along with a call option and an investor rights agreement to finance Keo World's corporate dollar credit card program focused on Latin America. Maha's intention is to syndicate a substantial portion of the facility. This program operates in partnership with a leading U.S. based credit card rail provider.
- Maha has issued a new bank debt of MUSD 12.5, with an upfront fee of 1.8% and an annual interest rate of 3.45% plus SOFR 3M, interest payable quarterly, one-year maturity and secured by Brava Energia's shares.
- In July 2025, approximately MUSD 1.7 held in the escrow account related to Maha Brazil Transaction was released in exchange for a bank guarantee.
Financial Summary
The tables below present the highlights of the continuing operations:
| Financial Summary (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Average (BOEPD) | 258 | 323 | 286 | 328 |
| Revenue | 1,433 | 2,193 | 3,330 | 4,360 |
| Operating Netback | 715 | 1,108 | 1,800 | 2,290 |
| EBITDA | (1,568) | (861) | 515 | (132) |
| Net Result | (20,216) | (22,669) | (14,224) | (16,685) |
| Earnings per share (basic & diluted) | (0.12) | (0.13) | (0.08) | (0.10) |
| Financial Liabilities | - | (23,939) | - | (23,939) |
| Financial assets | 78,104 | 72,874 | 78,104 | 72,874 |
| Cash flow from operations | (920) | (2,358) | 2,096 | (6,151) |
| Free cash flow | (1,361) | (81) | 1,338 | (74,506) |
| Cash and cash equivalents (incl. restricted cash) | 16,194 | 12,770 | 16,194 | 36,709 |
Letter to Shareholders
Dear Friends and Shareholders,
The second quarter of 2025 was marked by continued progress across multiple fronts. We intensified our efforts to streamline operations and reduce both costs and overhead, reinforcing our commitment to create a leaner and more efficient organization. Notably, we successfully concluded the sale of Block 70 in Oman, securing proceeds of USD 1.3 million. Brava Energia also continued to show positive operational and financial development, even in a challenging Brent price environment.
Brava Energia reported production levels exceeding 85,000 barrels of oil equivalent per day ("BOEPD") in Q2 2025. Production has since continued to increase, and in July Brava reached a milestone as production surpassed 90,000 BOEPD - the highest production level since 2021. This significant achievement underscores our conviction in the company's substantial production capacity and its ability to generate robust cash flow. Key contributors to this growth include the tie-in of new wells to the FPSO Atlanta, the restart of the Papa Terra and Manati fields, and continued optimization across the asset portfolio. We are confident that these production levels will accelerate deleveraging and position Brava as a meaningful value distributor to shareholders.
In Venezuela, we completed the work with our business plan in May. We continue to monitor geopolitical developments between Venezuela and the United States. We are cautiously optimistic that an eventual resolution will allow us to advance our strategy in full compliance with international standards, unlocking the significant value embedded in the PetroUrdaneta fields. This asset holds vast amounts of light oil as well as gas, and our business plan projects a total full field production of 84 million barrels of oil and 167 Bscf of gas, with peak output expected around 40,000 BOEPD. Negotiations with local authorities are progressing and we are maintaining a lean low-cost structure in Venezuela in the meantime.
In Illinois Basin (IB), natural decline and flooding, common for the season in the region, led to lower production during the quarter. Additionally, the downturn in oil prices since April 2025 prompted a strategic reassessment of our development plan. We have elected to defer certain capex activities in favor of lower-cost activities aimed at increasing production.
During the period, we also held an extraordinary shareholders' meeting in which we received unanimous approval to broaden our strategic mandate and rebrand the company as Maha Capital. This change reflects our expanded investment scope beyond oil and gas and minerals, and our ambition to unlock new, high-potential opportunities focused in Latin America.
In line with this vision, we were pleased to in July announce our first transaction outside the energy sector: a partnership with Keo World, a U.S.-based fintech company offering corporate credit solutions in U.S. dollars across Latin America. Keo specializes in B2B and E&T (entertainment & travel) card issuance, connecting businesses for online transactions. Maha Capital signed a Loan Agreement to finance up to USD 100 million, maturing in three years at a 12% annual interest rate. The facility is backed by a robust collateral package. Our intention is to syndicate a substantial portion of the facility. By this, Maha would benefit from a positive interest rate spread and optimize risk-return profile, supporting its objectives of capital efficiency and shareholder value creation. We are excited about the value creation potential of this transaction and confident that it marks the beginning of a successful new chapter in our diversification journey.
Finally, we closed the quarter with a solid balance sheet with total balance of available cash and liquid investments amounted to MUSD 88. In July, we further enhanced our liquidity position through a USD 12.5 million margin loan. On the cost front, we remain focused to increase efficiency and expect a material reduction in recurring general and administrative (G&A) expenses over the coming quarters. Maha Capital is well positioned to pursue new investment opportunities guided by our disciplined capital allocation approach, focused on high-yield, high-growth potential transactions.
Thank you for your continued trust and support.
Roberto Marchiori CEO
Operational Review
Assets Summary
USA Operation
Illinois Basin (IB)
Maha holds 100% working interest in Illinois basin located in the USA, with 2P reserves of 2.6 mmboe, as per year end 2024. The production at Illinois Basin decreased 20% from Q2 2024 to Q2 2025 and amounted to 258 BOEPD (Q2 2024: 323 BOEPD). In addition to the natural decline in producing wells, production was also affected by routine maintenance and flooding during the first half of the quarter, which caused some wells to be temporarily shut in.
Brazil Investment
Brava Energia S.A. (new corporate name of 3R Petroleum)
As per the end of Q2 2025, Maha held approximately 4.76% of the total shares of Brava Energia. Brava Energia ranks among Latin America's largest independent E&P companies.
Brava Energia reported a production of 85,890 BOEPD for Q2 2025. This represents an increase of 21% compared to Q1 2025 (70,815 BOEPD), primarily driven by the offshore fields Atlanta and Papa Terra. Production from two additional wells (4H and 5H) at Atlanta commenced in April 2025. The connection of wells 2H and 3H at Atlanta was completed in July 2025, after which the asset has six wells connected. Production has continued to increase, reaching 90,943 BOEPD in July 2025 — up 6% compared to Q2 2025.
In addition, operations at Manati were resumed by the operator in May but had by quarter end not yet reached full production capacity.
Potential new assets
PetroUrdaneta
In March 2024, Maha signed definitive agreements with Novonor and paid EUR 4.6 million, securing until November 2025 the exclusive right to acquire 60% of Novonor's Spanish vehicle, which holds a 40% equity interest in PetroUrdaneta.
In December 2024, technical and operational discussions were initiated between the relevant stakeholders aiming to define the re-development plan for the fields. In Q1 2025, Maha agreed with the main assumptions of the updated business plan with a total projected production volume of approximately 84 million barrels of oil and 167 Bscf of gas until 2037. In Q2 2025 the development plan for the PetroUrdaneta fields was concluded after approval from CVP/ PDVSA.
The Company continues to comply with all applicable regulations and conducts thorough due diligence in relation to its potential investment in Venezuela.
Cash Management
Partnership Agreement with Keo World Inc.
Maha announced in July that the Company has entered into a loan agreement, along with a call option and an investor rights agreement, with Keo World Inc. and its affiliates ("Keo") to finance Keo's corporate credit card program focused on Latin America. This program operates in partnership with a leading U.S.-based credit card rail provider, providing USD-denominated corporate cards.
Under the terms of the Partnership Agreement, Maha will establish a secured revolving credit facility of up to USD 100 million for a U.S.-based Special Purpose Vehicle (the "Keo SPV") over a three-year term, bearing an annual interest rate of 12% to be collected at the end of the three-year term. The facility is backed by a robust collateral package consisting of 100% of credit card receivables and available cash at Keo SPV. The full collateralization of the facility enables true-sale securitization and ring-fenced cash flows, increasing the attractiveness of the facility to potential senior lenders and reducing credit risk. In addition, Maha holds an option to acquire up to 50% equity ownership of Keo SPV through the conversion of interest payments owed by Keo SPV.
To optimize returns and manage exposure, Maha may syndicate a substantial portion of the facility. This structure enables Maha to benefit from a positive interest rate spread, supporting its objectives of capital efficiency and shareholder value creation.
The proceeds from the facility will be used by Keo SPV to provide USD-denominated credit to companies with strong credit profiles. These funds will support virtual B2B purchases and corporate travel and administrative expenses, under Keo's issuing license with a top-tier U.S. payment rail provider.
Financial Results Review
Continuing Operations
(Comparisons are made with the same period last year, unless otherwise stated.)
Production
Production volumes are equivalent to Maha's working interest of produced volumes before the deduction of royalties. The Company's continuing operations are related to the oil and gas assets in the Illinois Basin. Average daily production volumes in the Illinois Basin during Q2 2025 decreased by 20% due to the natural decline in producing wells, routine maintenance and flooding during the first half of the quarter, which caused some wells to be temporarily shut in.
Daily Production and Total Production BOEPD | BBL
Revenue
Revenue for Q2 2025 amounted to TUSD 1,433 (Q2 2024: TUSD 2,193), representing a decrease of 35%, mainly driven by lower realized oil prices and sales volume (Note 4).
| Revenue (TUSD) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|---|---|---|
| Total Sales Volume (BBL) | 23,567 | 27,677 | 34,551 | 25,240 | 28,149 | 51,243 | 57,446 |
| Oil and Gas Revenue | 1,433 | 1,897 | 2,327 | 1,805 | 2,193 | 3,330 | 4,360 |
| Oil Realized Price (USD/BBL) |
60.81 | 68.54 | 67.35 | 71.51 | 77.91 | 64.98 | 75.90 |
| Reference Price – Average WTI (USD/BBL)1 |
64.63 | 71.84 | 70.69 | 76.24 | 81.71 | 68.23 | 79.64 |
1 Source: https://fred.stlouisfed.org/series/MCOILWTICO
Revenue and Realized Price TUSD | USD/BBL
Production Costs
TUSD | USD/BBL
Production Costs and OPEX/BBL
Production costs for continuing operations decreased by 33%. This reduction reflects the Company's ongoing efforts to optimize operations and reduce costs, resulting in improved operational efficiency. A clear indicator is the decrease in production expenses per barrel, which decreased 20% from USD 21/bbl to USD 17/bbl.
Netback
Operating netback is a non-GAAP financial metric used in the oil and gas industry to compare internal performance with industry peers and is calculated as revenue deducted from royalties and production costs. The operating netback for the second quarter decreased by 35%, mainly due to the decrease in oil realized price and volume.
General and administration expenses ("G&A")
General and administration ("G&A") expenses are indirect corporate costs that are associated with running a business. In Q2 2025, G&A expenses totaled TUSD (1,788), reflecting a 50% decrease when compared with the same period (Q2 2024: TUSD (3,590)) (including discontinued operations).
This decrease is a result of the Company ongoing efforts to reduce costs, including the liquidation of certain dormant entities that were part of its corporate structure and to adopt a leaner structure.
Non-recurring G&A expenses were mainly related to extraordinary consultants and legal fees related to the exploration of new business opportunities, and potential M&A Transactions, among others.
Recurring G&A (General and Administrative Expenses) refers to periodic costs to keep the Company in an ongoing process, excluding the one-off or irregular expenses.
| Accounting G&A (TUSD) | Q2 2025 | Q2 2024 | Six Months | Six Months |
|---|---|---|---|---|
| 2025 | 2024 | |||
| Extraordinary Consulting Fees | (31) | (288) | (102) | (319) |
| Additional M&A Transactions | (21) | (684) | (294) | (696) |
| One-off restructuring costs | (185) | (59) | (184) | (59) |
| Reduced G&A relocations | (2) | (123) | (2) | (575) |
| New Project/Business | (456) | (473) | (1,186) | (628) |
| Non - Recurring G&A | (695) | (1,627) | (1,768) | (2,277) |
| Recurring G&A | (1,093) | (895) | (2,811) | (1,504) |
| Total G&A of Continuing operations2 | (1,788) | (2,522) | (4,579) | (3,781) |
| Adjusted G&A (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Total G&A of Continuing operations | (1,788) | (2,522) | (4,579) | (3,781) |
| Total G&A of Discontinued operations | - | (1,068) | - | (2,400) |
| Total G&A | (1,788) | (3,590) | (4,579) | (6,181) |
2 In 2024, Maha Brazil Holding and Maha Offshore were classified as discontinued operations due to the sale of their assets to Brava Energia.
EBITDA
EBITDA decrease to TUSD (1,568) (Q2 2024: TUSD (861)). The decline is primarily attributed to lower sales volumes, as well as lower realized oil price, and a reduced foreign exchange impact during the quarter.
EBITDA is a non-IFRS financial measure and is reconciled as follows:
| EBITDA (TUSD) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|---|---|---|
| Operating result | (2,488) | 833 | (4,096) | (2,723) | (2,234) | (1,655) | (2,831) |
| DD&A | 596 | 708 | 892 | 685 | 752 | 1,304 | 1,509 |
| Impairment/Write-off | - | - | 7 | - | - | - | 551 |
| Foreign currency exchange | 324 | 542 | 124 | 452 | 621 | 866 | 639 |
| EBITDA | (1,568) | 2,083 | (3,073) | (1,586) | (861) | 515 | (132) |
| Six | Six |
|---|---|
| Months | Months |
| 2025 | 2024 |
TUSD
Net finance and changes in fair value of financial investments
Net Finance amounted to TUSD (17,728) (Q2 2024: TUSD (20,555)) and included an unrealized net loss during the quarter of TUSD 18,100 from the change in fair value of the shares the Company holds in Brava Energia (Q2 2024: (20,019)).
Result
The net result from continuing operations for the second quarter amounted to TUSD (20,216) (Q2 2024: TUSD (22,669)), representing negative earnings per share of USD (0.12) (Q2 2024: USD (0.13)).
Financial position
Liquidity and capital resources
The Company's capital structure includes shareholders' equity of TUSD 108,233 (31 December 2024: TUSD 119,735).
The Company's restricted cash balance refers to certain financial commitments and contingent liabilities deposited in an escrow account related to Maha Brazil transaction.
During 2024, Maha repaid its bank debt and was, as per end of Q2 2025, a debt free company.
| Net cash (TUSD) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Full Year 2024 |
|---|---|---|---|---|---|---|
| Bank Debt (current) | - | - | - | (14,835) | (23,939) | - |
| Restricted Cash | 3,176 | 1,317 | 1,115 | 5,774 | 31,650 | 1,115 |
| Cash and Cash Equivalents | 13,018 | 14,018 | 8,935 | 19,899 | 5,059 | 8,935 |
| Total Net Cash Balance with restricted Cash |
16,194 | 15,335 | 10,050 | 10,838 | 12,770 | 10,050 |
| Brava Shares | 70,838 | 88,938 | 84,043 | 71,468 | 58,029 | 84,043 |
| 3R Offshore Debentures | 1,009 | 1,901 | 3,483 | 5,908 | 6,685 | 3,483 |
| Liquid investments | 71,847 | 90,839 | 87,526 | 77,376 | 64,714 | 87,526 |
| Total net cash (with restricted Cash) + Liquid investments |
88,041 | 106,174 | 97,576 | 88,214 | 77,484 | 97,576 |
Investments
Net cash flows used in investing activities totaled TUSD 441, primarily driven by the capex of TUSD 24 and restricted cash deposits related to contingent liabilities of TUSD 1,505, but mitigated by positive income related to Oman's Sale of TUSD 1,088.
Share Buy-back Program
On 13 June 2025, the Board of Directors decided, based on the authorization granted by the annual general meeting on 27 May 2025, to initiate a share buy-back program. According to the guidelines for the program, purchases could be made on one or several occasions during the period from 13 June 2025 until the next annual general meeting (For more information, see note 6). During Q2 2025 Maha repurchased 1,284,000 shares under the 2024 and 2025 share buy-back programs. Maha's total holdings of own shares as of 30 June 2025 amounted to 2,812,922 shares(corresponding to 1.58% of outstanding shares). For the complete repurchase authorization, please refer to Maha's website, www.maha-energy.com.
Governance
Board of Directors
Maha's Board of Directors consists of five members: Paulo Mendonça (chairman), Halvard Idland, Richard Norris, Fabio Vassel and Carlos Gomez-Lackington.
In March 2025, Maha announced that Roberto Marchiori has been appointed as CEO of Maha, effective immediately. Roberto has since May 2024 been the CFO of Maha, and since 2022 head of New Business Development and M&A Director at Maha.
For the complete information about Maha's board of directors and executive management, as well as main governance policies, please refer to Maha's website, www.maha-energy.com.
Extra general meeting
An Extraordinary General Meeting was held in July 2025 and resolved, in accordance with the board of directors' proposal, to amend the Company's business name firstly to i) Maha AB, alternatively ii) Maha Capital AB, alternatively iii) Maha Invest AB and lastly to iv) Maha Equity AB. It was further resolved to adjust the object of the Company's business to own and manage movable and immovable property and conduct other activities compatible therewith.
Environment, social, and governance (ESG)
No incidents or oil spills were reported by the company during Q2 2025. Maha's ESG initiatives are available on Maha's Annual Report alongside its Sustainability Report on Maha's website (www.maha-energy.com), which contains information about Maha's sustainability strategy.
Financial Statements
Consolidated Statement of Operations
| Consolidated Income Statement (TUSD) | Note | Q2 2025 | Q2 2024 | Six Months | Six Months |
|---|---|---|---|---|---|
| 2025 | 2024 | ||||
| Revenue | |||||
| Oil and gas sales | 4 | 1,433 | 2,193 | 3,330 | 4,360 |
| Royalties | 4 | (324) | (496) | (723) | (995) |
| Net Revenue | 1,109 | 1,697 | 2,607 | 3,365 | |
| Cost of sales | |||||
| Production costs | (394) | (589) | (807) | (1,075) | |
| Depletion, depreciation, and amortization | (596) | (752) | (1,304) | (1,509) | |
| Gross profit | 119 | 356 | 496 | 781 | |
| General and administration | (1,788) | (2,522) | (4,579) | (3,781) | |
| Other Income | 147 | 742 | 4,775 | 2,263 | |
| Other Expense | (966) | (810) | (2,347) | (2,094) | |
| Operating result | (2,488) | (2,234) | (1,655) | (2,831) | |
| Finance income | 515 | 448 | 819 | 864 | |
| Finance costs | (143) | (984) | (183) | (2,218) | |
| Changes in fair value of financial | (18,100) | (20,019) | (13,205) | (10,700) | |
| instruments | |||||
| Net Finance items | (17,728) | (20,555) | (12,569) | (12,054) | |
| Result before tax | (20,216) | (22,789) | (14,224) | (14,885) | |
| Current and deferred tax | - | 120 | - | (1,800) | |
| Net result from continuing operations | (20,216) | (22,669) | (14,224) | (16,685) | |
| Discontinued Operations | |||||
| Net result from discontinued operations | 5 | 25 | (449) | 25 | (660) |
| Net result | (20,191) | (23,118) | (14,199) | (17,345) | |
| Basic and diluted earnings per share | |||||
| From continuing operations | (0.12) | (0.13) | (0.08) | (0.10) | |
| From discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | |
| (0.12) | (0.13) | (0.08) | (0.10) | ||
| Weighted average number of shares: | |||||
| Before dilution | 171,372,460 | 169,399,533 | 171,372,460 | 169,399,533 | |
| After dilution | 172,367,016 | 169,399,533 | 172,367,016 | 169,399,533 |
Consolidated Statement of Financial Position
| Consolidated Balance Sheet (TUSD) | Note | 30-Jun-25 | 31-Dec-24 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 13,695 | 15,184 | |
| Long-term financial assets | 7 | 6,256 | 6,256 |
| Total non-current assets | 19,951 | 21,440 | |
| Current assets | |||
| Assets held for sale | 5 | - | 7,076 |
| Prepaid expenses and deposits | 121 | 207 | |
| Crude oil inventory | 198 | 186 | |
| Short-term financial assets | 7 | 71,847 | 87,526 |
| Accounts receivable and other credits | 908 | 1,269 | |
| Restricted cash | 3,176 | 1,115 | |
| Cash and cash equivalents | 13,018 | 8,935 | |
| Total current assets | 89,268 | 106,314 | |
| TOTAL ASSETS | 109,219 | 127,754 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Shareholders' equity | 108,233 | 119,735 | |
| Liabilities | |||
| Non-current liabilities | |||
| Decommissioning provision | 490 | 479 | |
| Lease liabilities | - | 318 | |
| Total non-current liabilities | 490 | 797 | |
| Current liabilities | |||
| Liabilities held for sale | 5 | - | 6,039 |
| Accounts payable | 354 | 828 | |
| Accrued liabilities and provisions | 142 | 256 | |
| Current portion of lease liabilities | - | 99 | |
| Total current liabilities | 496 | 7,222 | |
| TOTAL LIABILITIES | 986 | 8,019 | |
| TOTAL EQUITY AND LIABILITIES | 109,219 | 127,754 |
Consolidated Statement of Cash Flows
| Cash Flow (TUSD) | Note | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|---|
| Net results (cont. op.) | (20,216) | (22,669) | (14,224) | (16,685) | |
| Net results (disc. cont. op.) | 5 | 25 | (449) | 25 | (660) |
| Depletion, depreciation and | 631 | 974 | 1,345 | 2,588 | |
| amortization | |||||
| Stock-based compensation | 642 | 513 | 1,196 | 904 | |
| Share of income from investment in | - | (266) | - | (1,154) | |
| associate | |||||
| Unrealized investment (income) / | 18,100 | 20,019 | 13,205 | 10,701 | |
| expense | |||||
| Unrealized foreign exchange amounts | 155 | 693 | 703 | 523 | |
| Interest income/expense | (107) | 502 | (150) | 1,068 | |
| Income tax expense | - | 3,720 | - | 1,800 | |
| Accrued liabilities and provisions | (182) | (4,730) | (241) | (1,836) | |
| Dividends received | (788) | (200) | (788) | ||
| Other (gain) / loss | (660) | 217 | (320) | 337 | |
| Interest paid | - | (779) | - | (1,947) | |
| Interest received | 73 | 91 | 206 | 402 | |
| Taxes paid | (3) | 71 | (3) | 71 | |
| Change in working capital | 8 | 622 | 523 | 554 | (1,475) |
| Cash from operating activities | (920) | (2,358) | 2,096 | (6,151) | |
| Capital expenditures - PPE | (24) | (611) | (199) | (1,039) | |
| Investment in associates | 1,088 | - | 1,088 | - | |
| Investments in financial assets | - | (3,005) | - | (77,724) | |
| Restricted cash | (1,505) | 5,893 | (1,647) | 10,408 | |
| Cash used in investment activities | (441) | 2,277 | (758) | (68,355) | |
| Lease payments | (14) | (39) | (48) | (78) | |
| Repayment of bank debt | - | (5,250) | - | (10,500) | |
| Dividends received / (paid) | - | - | 200 | - | |
| Capital Increase | 5 | - | 5 | - | |
| Debentures received | 936 | 1,066 | 2,703 | 2,154 | |
| Repurchased shares | (493) | - | (493) | - | |
| Cash from (used in) financing | 434 | (4,223) | 2,367 | (8,424) | |
| activities | |||||
| Change in cash and cash equivalents | (927) | (4,304) | 3,705 | (82,930) | |
| Cash and cash equivalents at the | 14,383 | 10,038 | 9,298 | 88,643 | |
| beginning of the period | |||||
| Currency exchange differences in cash | (438) | (192) | 15 | (173) | |
| and cash equivalents | |||||
| Cash and cash equivalents at the end | 13,018 | 5,542 | 13,018 | 5,540 | |
| of the period | |||||
| - of which is included in discontinued | - | 483 | - | 481 | |
| operations | 5 | ||||
| - of which is included in the continued | 13,018 | 5,059 | 13,018 | 5,059 | |
| operations |
Consolidated Statement of Comprehensive Earnings
| Consolidated Comprehensive Result (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Net Result for the period | (20,191) | (23,118) | (14,199) | (17,345) |
| Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations |
(338) | (1,475) | 1,994 | (3,246) |
| Comprehensive result for the period | (20,529) | (24,593) | (12,205) | (20,591) |
| Attributable to: Shareholders of the Parent Company |
(20,529) | (24,593) | (12,205) | (20,591) |
Consolidated Statement of Changes in Equity
| Consolidated Statement of Changes in | Share | Contributed | Other | Retained | Shareholders' |
|---|---|---|---|---|---|
| Equity (TUSD) | capital | surplus | Reserve | Earnings | Equity |
| Balance on 01 January 2024 | 208 | 135,067 | (14,427) | 33,977 | 154,825 |
| Comprehensive result | |||||
| Result for the period | - | - | - | (32,565) | (32,565) |
| Currency translation difference | - | (506) | (3,029) | - | (3,535) |
| Total comprehensive result | - | (506) | (3,029) | (32,565) | (36,100) |
| Transactions with owners | |||||
| Stock based compensation | - | 2,176 | - | - | 2,176 |
| Repurchased shares | - | (1,166) | - | - | (1,166) |
| Balance on 31 December 2024 | 208 | 135,571 | (17,456) | 1,412 | 119,735 |
| Balance on 01 January 2025 | 208 | 135,571 | (17,456) | 1,412 | 119,735 |
| Comprehensive result | |||||
| Result for the period | - | - | - | (14,199) | (14,199) |
| Currency translation difference | - | - | 1,994 | - | 1,994 |
| Total comprehensive result | - | - | 1,994 | (14,199) | (12,205) |
| Transactions with owners | |||||
| Stock based compensation | - | 1,196 | - | - | 1,196 |
| Repurchased shares | - | (493) | - | - | (493) |
| Balance on 30 June 2025 | 208 | 136,274 | (15,462) | (12,787) | 108,233 |
Maha Capital AB - Parent Company
Business activities for Maha Capital AB, formerly known as Maha Energy AB, focuses on a) management of all group affiliates, subsidiaries, and foreign operations; b) management of publicly listed Swedish entity; c) fundraising as required for acquisitions and group business growth; and d) business development.
The net result for the Parent Company for Q2 2025 amounted to TSEK (101,634) (Q2 2024: TSEK (202,561)), mainly due to the unrealized gain resulting from the fair value of Brava Energia shares.
Parent Company Statement of Operations
| Parent Company Statement of Operations (in thousands of Swedish Krona) |
Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Revenue | - | - | - | - |
| Expenses | ||||
| General and administrative | (16,153) | (11,280) | (22,773) | (17,852) |
| Other Income | (190,778) | - | (7,101) | - |
| Other Expense | (71,172) | 709 | (178,212) | (39,861) |
| Operating result | (278,103) | (10,571) | (208,086) | (57,713) |
| Finance income | 221,213 | 53,661 | 221,760 | 15,660 |
| Finance costs | - | (10,617) | - | (23,620) |
| Changes in fair value, financial instruments | (174,849) | (255,524) | (136,306) | (113,619) |
| Result before tax | (231,739) | (223,051) | (122,632) | (179,292) |
| Group Contribution | 123,305 | - | 123,305 | - |
| Current and deferred tax | - | 20,490 | - | - |
| Net result continuing operations | (108,434) | (202,561) | 673 | (179,292) |
| Net results3 | (108,434) | (202,561) | 673 | (179,292) |
3 A separate report over Other comprehensive Income is not presented for the Parent Company as there are no items included in Other Comprehensive Income for the Parent Company.
Parent Company Balance Sheet
| Parent Company Balance Sheet (in thousands of Swedish Krona) |
Note | 30-Jun-25 | 31-Dec-24 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Investments in subsidiaries | 173,142 | 189,375 | |
| Loans to subsidiaries | 409,751 | 337,108 | |
| Current assets | |||
| Accounts receivable and other | 1,124 | 23,965 | |
| Other short-term financial assets | 672,122 | 930,365 | |
| Cash and cash equivalents | 93,212 | 32,929 | |
| Total Assets | 1,349,351 | 1,513,742 | |
| Equity and Liabilities | |||
| Share capital | 1,963 | 1,963 | |
| Contributed Surplus | 1,219,298 | 1,212,452 | |
| Retained Earnings | (608,672) | (608,368) | |
| Total equity | 612,589 | 606,047 | |
| Current liabilities | |||
| Accounts payable and accrued liabilities | 1,799 | 3,251 | |
| Loan from subsidiaries | 734,963 | 904,444 | |
| Total Liabilities | 736,762 | 907,695 | |
| Total Equity and Liabilities | 1,349,351 | 1,513,742 |
Parent Company Statement of Changes in Equity
| Restricted equity | Unrestricted equity | |||
|---|---|---|---|---|
| Consolidated Statement of Changes in | Share capital | Contributed | Retained | Shareholders' |
| Equity (in thousands of Swedish Krona) | surplus | Earnings | Equity | |
| Balance on 01 January 2024 | 1,963 | 1,201,367 | (918,028) | 285,302 |
| Total comprehensive income | - | - | (179,292) | (179,292) |
| Transaction with owners | ||||
| Stock based compensation | - | 7,281 | - | 7,281 |
| Repurchased shares | - | - | - | - |
| Balance on 30 June 2024 | 1,963 | 1,208,648 | (1,097,320) | 113,291 |
| Balance on 01 January 2025 | 1,963 | 1,212,450 | (608,366) | 606,047 |
| Total comprehensive income | - | - | 673 | 673 |
| Changes in ownership within the Group | - | - | (979) | (979) |
| Transaction with owners | ||||
| Stock based compensation | - | 11,660 | - | 11,660 |
| Repurchased shares | - | (4,812) | - | (4,812) |
| Balance on 30 June 2025 | 1,963 | 1,219,298 | (608,672) | 612,589 |
Notes to the Consolidated Financial Statements
1. Corporate Information
Maha Capital AB ("Maha (Sweden)" or "Company" or "Parent Company"), formerly known as Maha Energy AB, Organization Number 559018-9543 and its subsidiaries (together "Maha" or the "Group") has transformed into a company focused on deploying capital across high-potential sectors. The Company aims to build a diversified portfolio of investments that deliver long-term value for shareholders, targeting opportunities with strong fundamentals, clear paths to monetization, and attractive risk-adjusted returns. The Group has operations in the United States. The head office is located in Stockholm, Sweden. The Company has operations offices in New Harmony, IN, USA, and Rio de Janeiro, Brazil.
a. Changes in the Group
As part of Maha Group's restructuring plan, in the second quarter of 2025, the Company formally dissolved Maha Energy Finance (Luxembourg) S.à.r.l. Sverige and completed the sale of Maha Energy 2 (Brazil) AB and Maha Energy (Oman) Ltd.
b. Basis of Presentation
The interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), and the Swedish Annual Accounts Act.
The interim condensed consolidated financial statements are stated in thousands of United States Dollars (TUSD), unless otherwise noted, which is the Company's presentation and functional currency. These interim consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are stated at fair value.
The financial reporting of the parent Company (Maha Capital AB) has been prepared in accordance with accounting principles generally accepted in Sweden, applying RFR 2 Reporting for legal entities, issued by the Swedish Financial Reporting Board and the Annual Accounts Act. Under Swedish company regulations it is not allowed to report the Parent Company results in any other currency than Swedish Krona or Euro and consequently the Parent Company's financial information is reported in Swedish Krona and not the Group's presentation currency of US Dollar.
c. Significant Accounting Policies
The accounting principles described in the Annual Report 2024 have been used in the preparation of this report. Certain information and disclosures normally included in the notes to the annual consolidated financial statements have been condensed or have been disclosed on an annual basis only. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2024.
d. Exchange Rates
| 30-Jun-25 | 30-Jun-24 | 31-Dec-24 | ||||
|---|---|---|---|---|---|---|
| Currency | Average | Period end | Average | Period end | Average | Period end |
| USD/BRL | 5.7594 | 5.428701 | 5.0769 | 5.595316 | 5.8297 | 6.1851 |
| BRL/SEK | 1.7637 | 1.747778 | 2.0747 | 1.893238 | 1.8470 | 1.7898 |
| USD/SEK | 10.1525 | 9.488165 | 10.5407 | 10.593266 | 10.4611 | 11.0702 |
2. Risks and uncertainties
A detailed analysis of Maha's operational, financial, and external risks, and the mitigation of those risks through risk management is described in Maha's 2024 Annual Report (pages 39 - 44). No additional risks or uncertainties have been identified during Q2 2025.
3. Segment Information
Operating segments are based on a geographic perspective and reported in a manner consistent with the internal reporting provided to the executive management. The operating netback is regularly reviewed by the executive management.
- United States of America (USA): Includes all oil and gas activities in the Illinois Basin.
- Corporate: Includes aggregates costs incurred at the Company's corporate office in Sweden and the technical and support office in Brazil. These costs are not allocated to the operating segment. The segment information does not include any amounts for discontinued operations, which are described in more detail in Note 5.
The following tables present the operating netback and net results for the segment.
| Q2 2025 (TUSD) | USA | Corporate | Consolidated |
|---|---|---|---|
| Revenue | 1,433 | - | 1,433 |
| Royalties | (324) | - | (324) |
| Production and operating | (394) | - | (394) |
| Operating Netback | 715 | - | 715 |
| Depletion, depreciation, and amortization | (582) | (14) | (596) |
| General and administration | (51) | (1,737) | (1,788) |
| Other Income | 1 | 146 | 147 |
| Other Expenses | (3) | (963) | (966) |
| Operating Results | 80 | (2,568) | (2,488) |
| Net Finance | (5) | (17,723) | (17,728) |
| Current and deferred tax | - | - | - |
| Net results from continuing operations | 75 | (20,291) | (20,216) |
| Q2 2024 (TUSD) | USA4 | Corporate | Consolidated |
|---|---|---|---|
| Revenue | 2,193 | - | 2,193 |
| Royalties | (496) | - | (496) |
| Production and operating | (589) | - | (589) |
| Operating Netback | 1,108 | - | 1,108 |
| Depletion, depreciation, and amortization | (738) | (14) | (752) |
| General and administration | (104) | (2,418) | (2,522) |
| Other Income | 300 | 442 | 742 |
| Other Expenses | (5) | (805) | (810) |
| Operating Results | 561 | (2,795) | (2,234) |
| Net Finance | (4) | (20,551) | (20,555) |
| Current and deferred tax | - | 120 | 120 |
| Net results from continuing operations | 557 | (23,226) | (22,669) |
4 Considering that LAK operations were sold in 2023, the figures related to this entity were considered as part of the corporate segment in 2025. As a result, for better presentation purposes, the Q2 2024 figures are being presented in the same format.
| Six Months 2025 (TUSD) | USA | Corporate | Consolidated |
|---|---|---|---|
| Revenue | 3,330 | - | 3,330 |
| Royalties | (723) | - | (723) |
| Production and operating | (807) | - | (807) |
| Operating Netback | 1,800 | - | 1,800 |
| Depletion, depreciation, and amortization | (1,260) | (44) | (1,304) |
| General and administration | (179) | (4,400) | (4,579) |
| Other Income | 36 | 4,739 | 4,775 |
| Other Expenses | (4) | (2,343) | (2,347) |
| Operating Results | 393 | (2,048) | (1,655) |
| Net Finance | (11) | (12,558) | (12,569) |
| Current and deferred tax | - | - | - |
| Net results from continuing operations | 382 | (14,606) | (14,224) |
| Six Months 2024 (TUSD) | USA | Corporate | Consolidated |
|---|---|---|---|
| Revenue | 4,360 | - | 4,360 |
| Royalties | (995) | - | (995) |
| Production and operating | (1,075) | - | (1,075) |
| Operating Netback | 2,290 | - | 2,290 |
| Depletion, depreciation, and amortization | (1,493) | (16) | (1,509) |
| General and administration | (108) | (3,673) | (3,781) |
| Other Income | 257 | 2,006 | 2,263 |
| Other Expenses | (8) | (2,086) | (2,094) |
| Operating Results | 938 | (3,769) | (2,831) |
| Net Finance | (9) | (12,045) | (12,054) |
| Current and deferred tax | - | (1,800) | (1,800) |
| Net results from continuing operations | 929 | (17,614) | (16,685) |
4. Revenue
The Company revenue arises from sales of oil production in the Illinois basin, USA.
| Revenue (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Total Revenue from continuing operations | 1,433 | 2,193 | 3,330 | 4,360 |
Revenue is measured in the consideration specified in the contracts and represents amounts receivable, net of discounts and sales taxes. Performance obligations associated with the sale of crude oil are satisfied when the oil is physically transferred at the delivery point agreed with the customer and the customer obtains legal title. The continuing operations of the Company have one main customer that individually accounts for 100% of the Company's consolidated gross sales.
Royalties are settled in cash and based on realized prices before discounts. Royalty expenses in the second quarter are consistent with lower revenue for the same period.
| Royalties (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Royalties | 324 | 496 | 723 | 995 |
| Royalties as a % of revenue | 22.6% | 22.6% | 21.7% | 22.8% |
5. Discontinued Operations
Sale of Oman in Q4 2023
Results of Discontinued Operations – Oman
| Oman Discontinued Operations Income Statement (TUSD) |
Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Cost of sales | ||||
| Depletion, depreciation and amortization | - | (4) | - | (8) |
| Gross profit | - | (4) | - | (8) |
| General and administration | - | (268) | - | (519) |
| Other Income5 | (1,147) | - | 59 | - |
| Operating result | (1,147) | (272) | 59 | (527) |
| Net finance income (costs) | (4) | 13 | (4) | 12 |
| Result before tax | (1,151) | (259) | 55 | (515) |
| Net result from discontinued operations | (1,151) | (259) | 55 | (515) |
Cash Flow of Discontinued Operations – Oman
| Cash Flow from Discontinued Operations (TUSD) |
Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Cash from operating activities | (155) | (111) | (155) | 333 |
| Cash used in investment activities | (210) | (44) | (210) | (399) |
In Q2 2025, the sale of Maha's working interest in Block 70's was completed with the payment of the purchase price amounting TUSD 1,300, net of working capital adjustment.
| Loss on sale of discontinued operations (TUSD) |
30-Jun-25 |
|---|---|
| Net assets of discontinued operations sold | 2,000 |
| Total value received from sales | 1,300 |
| Loss on sale of discontinued operations | 700 |
5 Other income reported on Q2 2025 and Six Months 2025 partially pertains to a related-party transaction, which was eliminated from the consolidated financial statements.
Maha Energy Holding Brasil Ltda. was sold in Q3 2024 in the context of 3R Offshore Rollup Transaction
| Brazil Discontinued Operations Income Statement (TUSD) |
Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Cost of sales | ||||
| Depletion, depreciation and amortization | - | (20) | - | (51) |
| Gross profit | - | (20) | - | (51) |
| General and administration | - | (800) | - | (1,881) |
| Other Income | - | 377 | - | 1,321 |
| Other Expense | - | 95 | - | - |
| Operating result | - | (348) | - | (611) |
| Net finance income (costs) | - | 161 | - | 469 |
| Result before tax | - | (187) | - | (142) |
| Current tax recovery (expense) | - | (3) | - | (3) |
| Result after tax | - | (190) | - | (145) |
| Gain on sale of discontinued operations | - | - | - | - |
| Net result from discontinued operations | - | (190) | - | (145) |
Results of Discontinued Operations – Maha Energy Holding Brasil Ltda.
Cash Flow from Discontinued Operations - Maha Energy Holding Brasil Ltda.
| Cash Flow from Brazil Discontinued Operations (TUSD) |
Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Cash from operating activities | - | (651) | - | (1,762) |
| Cash used in investment activities | - | (1,476) | - | (721) |
| Cash from (used in) financing activities | - | 1,329 | - | 2,377 |
3R Offshore Roll-up Transaction
In Q3 2024, Maha completed the roll-up of its 15% holdings in 3R Offshore into Brava Energia, following the merger of Enauta and 3R Petroleum. As a result, Maha received 10,081,840 Brava Energia shares, bringing its total holding to approximately 22 million shares (4.76% of the company). A capital gain of TUSD 17,943 was recognized under discontinued operations in 2024 financial results.
| Gain on sale of discontinued operations | 31 December |
|---|---|
| (TUSD) | 2024 |
| Net assets of discontinued operations sold | 35,078 |
| Total value received from sales | 53,021 |
| Gain on sale of discontinued operations | 17,943 |
6. Share Capital
| Shares Outstanding | A | B | A+B |
|---|---|---|---|
| 31 December 2023 | 178,444,753 | - | 178,444,753 |
| Share subscription | - | - | - |
| 31 December 2024 | 178,444,753 | - | 178,444,753 |
| Share subscription | - | - | - |
| 30 June 2025 | 178,444,753 | - | 178,444,753 |
Buy-back Program (Repurchased Shares)
On 13 June 2025, the Board of Directors decided, based on the authorization granted by the annual general meeting held on 27 May 2025, to initiate a share buy-back program to repurchase up to 10% of Maha's outstanding shares. The program aims to provide the company with greater flexibility in managing its equity and optimizing its capital structure. Repurchased shares may also be utilized as consideration for acquisitions or financing business opportunities, as well as for the administration of incentive programs.
As of June 30, 2025, the company had repurchased a total of 2,812,922 shares (1.58% of outstanding shares), with a total disbursement of TSEK 16,799 (approximately TUSD 1,659) related to the 2024 and 2025 programs.
7. Financial Assets and Liabilities
For financial instruments measured at fair value in the balance sheet, the following hierarchy is used:
- Level 1: based on quoted prices in active markets.
- Level 2: based on inputs other than quoted prices as within level 1, that are either directly or indirectly observable.
- Level 3: based on inputs which are not based on observable market data.
The Company's cash and cash equivalents, short-term and liquid financial investments, accounts receivable, accounts payable and accrued liabilities are assessed as per the fair value hierarchy described above. The fair value of these items approximates their carrying value due to their short maturity term.
The long-term financial assets are carried at amortized cost, which approximates the fair value.
| Long-Term Financial Assets (TUSD) | Level | Amortized cost | FVTPL | Total |
|---|---|---|---|---|
| Investment in Bolivian Pipeline | 3 | - | 1,067 | 1,067 |
| Call option PetroUrdaneta | 3 | - | 4,983 | 4,983 |
| Performance Bonds | 3 | - | 206 | 206 |
| Total | - | 6,256 | 6,256 |
| Short-Term Financial Assets (TUSD) | Level | Amortized cost | FVTPL | Total |
|---|---|---|---|---|
| Brava Energia shares | 1 | - | 70,838 | 70,838 |
| Debenture - 3R Offshore | 2 | 1,009 | - | 1,009 |
| Total | 1,009 | 70,838 | 71,847 |
Brava Energia
As per the end of Q2 2025, Maha held approximately 22 million shares, corresponding to 4.76% of Brava Energia's total shares.
Bolivian Pipeline – GasTransboliviano
In 2023, Maha made an investment of TUSD 1,000 in 2B Ametrino AB, through the acquisition of 3,845 shares, equivalent to approximately 7% interest in said company. Additionally, the company paid TUSD 67 to cover transaction expenses. 2B Ametrino AB holds a 38% interest in GasTransboliviano S.A., a company which owns the Bolivian portion of the "Brasil-Bolivia" pipeline.
Debenture - 3R Offshore
In 2024, to finance the development of 3R Offshore's assets, Maha subscribed to non-convertible debentures issued by 3R Offshore. The debenture carries an interest rate tied to the Brazilian floating interbank rate (CDI), plus a spread of 3.8%.
8. Changes in Non-Cash Working Capital
The subsequent table delineates the non-cash working capital:
| Non-cash Working Capital Changes (TUSD)6 | 30-June-25 | 31-Dec-24 |
|---|---|---|
| Change in: | ||
| Accounts receivable | 727 | (203) |
| Inventory | 18 | (29) |
| Accounts payable | (123) | (1,307) |
| Total | 622 | (1,539) |
9. Pledged Assets, Commitments and Contingent Liabilities
Pledged Assets
The Group has TUSD 3,176 funds deposited in escrow accounts as collateral against potential liabilities arising from the sale of Maha Brazil Transaction. In addition, the Group has TUSD 10,901 in bank guarantees for potential contingent liabilities related to Maha Brazil Transaction, which was guaranteed through the pledge of a parcel of the Company's shares in Brava Energia.
Commitments and Contingent Liabilities
The Company has commitments involving Blocks 117 and 118, which were sold to PetroRecôncavo as part of Maha Brazil Transaction. In addition, the Company coordinates a conciliation procedure with ANP related to such minimum exploratory commitments, which Maha will have to indemnify PetroRecôncavo in case of loss when it comes to such dispute/ past liability. In Q2 2025, the maximum estimated contingent liability related to this dispute is TUSD 6,982. For additional information on the commitments and contingent liabilities, please refer to notes 25 and 26 of the Annual Report 2024, available at www.maha-energy.com. In the Illinois Basin, the Company has commitments to drill four (4) operated wells from 2025 to 2027 and three (3) wells in 2028.
6 To enhance clarity regarding the working capital for the period, starting from 2024, the table will reflect the working capital solely from continued operations
10. Earn-out
In December 2022, Maha announced the divestment of its Brazilian subsidiary (Maha Brazil) to PetroRecôncavo for total purchase price of TUSD 150,916. In addition, earn-outs of up to TUSD 36,100, could be paid based on certain contractual conditions being met, whereof up to TUSD 24,100 refers to the average annual Brent oil price for the next three years and TUSD 12,000 refers to synergies with PetroRecôncavo's potential new assets.
The average annual Brent oil price earn-outs will be payable according to the table below:
| Brent | 2023 | 2024 | 2025 | Total |
|---|---|---|---|---|
| 80 – 85 USD/bbl | 1.5 | 4.4 | 3.9 | 9.8 |
| 85 – 90 USD/bbl | 5.9 | 7.8 | 5.9 | 19.6 |
| Above 90 USD/bbl | 8.4 | 8.4 | 7.2 | 24.0 |
11. Related Party Transactions
There have been no significant changes in related party transactions this quarter compared to previous years. In relation to the Parent Company, the subsidiaries are considered related parties. The Parent Company has provided subsidiaries with intragroup debt and receives interest income on a loan from one of the subsidiaries.
12. Subsequent Event
- An Extraordinary General Meeting was held in July 2025 and resolved to amend the Company's business name and to adjust the object of the Company's business to own and manage movable and immovable property and conduct other activities compatible therewith.
- In July, Maha has entered into a loan agreement of up to USD 100 million, along with a call option and an investor rights agreement to finance Keo's corporate dollar credit card program focused on Latin America. This program operates in partnership with a leading U.S. based credit card rail provider.
- Maha has issued a new bank debt of MUSD 12.5, with an upfront fee of 1.8% and an annual interest rate of 3.45% plus SOFR 3M, interest payable quarterly, one-year maturity and secured by Brava Energia's shares.
- In July 2025, approximately MUSD 1.7 held in the escrow account related to Maha Brazil Transaction was released in exchange for a bank guarantee.
Financial summary
Regarding the discontinued operations of Maha Brazil in Q3 2024 and Oman in Q4 2023:
| Financial Summary (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Average (BOEPD) | - | - | - | - |
| Revenue | - | - | - | - |
| Operating Netback | - | - | - | - |
| EBITDA | (1,146) | (636) | 60 | (1,175) |
| Net Result | 25 | (449) | 25 | (660) |
| Earnings per share (basic & diluted) | - | - | - | - |
| Financial Liabilities | - | - | - | - |
| Financial Assets | - | - | - | - |
| Cash flow from operations | (155) | (762) | (155) | (1,429) |
| Free cash flow | (365) | (2,282) | (365) | (2,549) |
| Cash and cash equivalent (incl. restricted cash) | - | 483 | - | 483 |
Continuing and discontinuing operation combined:
| Financial Summary (TUSD) | Q2 2025 | Q2 2024 | Six Months 2025 |
Six Months 2024 |
|---|---|---|---|---|
| Average (BOEPD) | 258 | 323 | 286 | 328 |
| Revenue | 1,433 | 2,193 | 3,330 | 4,360 |
| Operating Netback | 715 | 1,108 | 1,800 | 2,290 |
| EBITDA | (2,714) | (1,497) | 575 | (1,307) |
| Net Result | (20,191) | (23,118) | (14,199) | (17,345) |
| Earnings per share (basic & diluted) | (0.12) | (0.13) | (0.08) | (0.10) |
| Financial Liabilities | - | (23,939) | - | (23,939) |
| Financial Assets | 78,104 | 72,874 | 78,104 | 72,874 |
| Cash flow from operations | (1,075) | (3,120) | 1,941 | (7,580) |
| Free cash flow | (1,726) | (2,363) | 973 | (77,055) |
| Cash and cash equivalent (incl. restricted cash) | 16,194 | 37,192 | 16,194 | 37,192 |
Glossary
Key Ratio Definition
Cash flow from operations: Cash flow from operating activities in accordance with the consolidated statement of cash flow.
EBITDA (Earnings before interest, taxes, depreciation, and amortization and impairment): Operating profit before depletion of oil and gas properties, depreciation of tangible assets, impairment, foreign currency exchange adjustments, interest and taxes.
Earnings per share: Net result is attributable to shareholders of the Parent Company divided by the weighted average number of shares for the year.
Earnings per share fully diluted: Net result attributable to shareholders of the Parent Company divided by the weighted average number of shares after considering any dilution effect for the year.
Operating netback: Operating netback is defined as revenue less royalties and operating expenses.
Weighted average number of shares for the year: The number of shares at the beginning of the year with changes in the number of shares weighted for the proportion of the year they are in issue.
Currency Definitions
| SEK | Swedish Krona |
|---|---|
| BRL | Brazilian Real |
| USD | US Dollar |
| TSEK | Thousand SEK |
| TUSD | Thousand USD |
Oil Measurements
| BOE or boe | Barrels of Oil Equivalents |
|---|---|
| BBL or bbl | Barrel |
| Mbbl | Thousand barrels of Oil |
| MMbbl | Million barrels of Oil |
| Mboe | Thousand barrels of oil equivalents |
| MMBoe | Millions of barrels of oil equivalents |
| Mboepd | Thousand barrels of oil equivalent per day |
Other Related Terms
2P Refers to proven reserves (P90) plus probable reserves (P50).
3R Offshore Refers to 3R Petroleum Offshore S.A., entity which issued the debentures currently held by Maha BRZ.
3R Petroleum Refers to 3R Petroleum Óleo e Gás S.A., a Brazilian oil & gas company, being its current corporate name Brava Energia S.A.
2B Ametrino AB previously named EIG Bolivia Pipeline AB. Refers to a Bolivian company that holds a 38% interest in GasTransboliviano S.A., a company which owns the Bolivian parcel of the pipeline "Brasil-Bolivia" or "GTB".
Brava Energia Refers to the new corporate name of 3R Petroleum after the merge with Enauta Participações S.A., under which Maha holds shares.
Block 70 Refers to Block 70, located in Oman, operated by Maha Oman which holds 65% working interests.
Illinois Basin Refers to the Company's Light oil field in Illinois/Indiana, USA.
Mafraq Refers to Mafraq Energy LLC.
Maha or the Company Refers to, depending on the context, Maha Capital AB (registration number 559018-9543), formerly known as Maha Energy AB, a Swedish public limited company, the group which the Company is the parent company, or any subsidiary in the Maha's group.
Maha Brazil Transaction refers to the divestment of Maha's Brazilian subsidiary (Maha Brazil) to PetroRecôncavo.
PetroUrdaneta Refers an O&G mixed capital company operating in Venezuela, and which shares are held by PDVSA (60%) and OE&P (40%). The field's last reported production is over 1,000 bopd.
PetroRecôncavo Refers to PetroRecôncavo S.A., which on 28 February 2023 acquired Maha's Brazilian subsidiary which had working interest on Tie field and Tartaruga field.
Working Interest Refers to a percentage ownership of the drilling and extraction operation, providing the owner(s) with a right to participate in such activities and a right to the resources produced from that activity.
This report has not been subject to review by Maha Capital's auditors.
Approved by Maha Capital AB (publ) Org. No. 559018-9543
Stockholm, 19 August 2025
Paulo Mendonça Chairman
Roberto Marchiori CEO
Carlos Gomez-Lackington Director
Halvard Idland Director
Fabio Vassel Director
Richard Norris Director
Financial Calendar
- Report for third quarter 2025 (July September 2025) on 18 November 2025
- Report for fourth quarter 2025 (October December 2025) on 26 February 2026
Contact Information
For more information, please contact:
Roberto Marchiori, CEO & CFO | Jakob Sintring, Head of IR Phone: +46 8 611 05 11, E-mail: [email protected]
| Maha Capital AB Head Office |
Eriksbergsgatan 10, SE-114 30 Stockholm, Sweden +46 8 611 05 11 |
|---|---|
| Technical Office | Rua Sete de Setembro 92, suite 2207, 20050-002 Centro, Rio de Janeiro Brazil+46 8 611 05 11 |
| Email: | [email protected] |
This information is information that Maha Capital AB is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact people set out above, at 07:30 CEST on 19 August 2025.
Forward-Looking Statements in this report relating to future status or circumstances, including statements regarding future performance, growth and other trend projections are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as "anticipate", "believe", "expect", "intend", "plan", "seek", "will", "would" or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company's control. Any forward-looking statements in this report speak only as of the date on which the statements are made, and the company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.