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
Q2 Webcast 19 August at 14:00 CEST
The Company hereby invites all interested parties to a live webcasted presentation on Tuesday, 19 August 2025 at 14.00 CEST. Roberto Marchiori, CEO, will present the report and recent developments. The webcast will be held in English and will be broadcasted live. An on-demand version will also be available on Maha's website. Questions to the presenters can be emailed in advance to the Company at info@maha-capital.com or be made directly on the day of the presentation in the YouTube Comments/Questions field.
Link to webcast: https://youtube.com/live/xHRt8tsENec
Contacts
Roberto Marchiori, CEO & CFO | Jakob Sintring, Head of IR
Phone: +46 8 611 05 11, E-mail: IR@maha-capital.com
About Maha Capital
Maha Capital AB (publ) is a listed investment 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. Maha Capital targets opportunities with strong fundamentals, clear paths to monetization, and attractive risk-adjusted returns. The shares are listed on Nasdaq Stockholm (MAHA-A). For more information, please visit the Company's website at www.maha-energy.com.
This information is information that Maha Capital is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-19 07:30 CEST.
