NewzIntel.com

Category: Russian Federation

  • MIL-Evening Report: Can the UK prime minister make liberal democracies great again?

    Source: The Conversation (Au and NZ) – By Ben Wellings, Associate Professor in Politics and International Relations, Monash University

    There’s been some “great television” this past week for those who like to watch the end of the West.

    The US president and vice-president effectively sided with Russia in an attempt to bring the war in Ukraine to an end in a way that benefits a) the United States, b) the US president’s vanity, and c) Vladimir Putin.

    Starmer and post-Brexit Britain

    But every crisis also provides an opportunity. The UK prime minister, Keir Starmer, grasped the chance to slough off his uninspiring domestic image as he sought to keep the US engaged in negotiations and preserve a semblance of Ukrainian sovereignty.

    In truth, Starmer’s diplomacy continues the policy of the previous government, which made Ukraine the crucible for Britain’s post-Brexit reintegration into European diplomacy.

    Since the Russian invasion of 2022, Britain distinguished itself as one of Ukraine’s most vociferous backers. It provided strident rhetorical support alongside around £13 billion in aid since the conflict began.

    Like his predecessors, Starmer’s support for Ukraine has offered respite from domestic challenges. His recent advocacy has led to a three-month high in the polls, albeit with a still dismal net approval rating of -28.

    But we shouldn’t be overly cynical. His government has provided us with a framework to understand its approach. According to the doctrine of Progressive Realism, the UK government’s foreign policy reflects a “tough-minded” assessment of Britain’s position within the balance of power as it pursues enlightened ends.

    The initial fit is evident: throughout his advocacy, Starmer’s continued appeals for a US backstop indicate awareness of British limitations while championing Ukrainian self-determination.

    However, increasing Britain’s military budget to counter Russia at the expense of the country’s overseas aid budget is hardly progressive, as both Starmer and UK Foreign Secretary David Lammy have previously noted. Most recently, in Lammy’s case, this concerned Trump’s cuts to USAID last month.

    To his credit, Starmer has recognised that Britain cannot deter Russia alone, and is assembling a “coalition of the willing”. However, even with France and smaller players such as the Scandinavians, Canadians and Australians, this may well be insufficient. Hence the ongoing appeals to the US for security guarantees that it is clearly unwilling to provide.

    If we accept Einstein’s famous definition of insanity as doing the same thing and expecting different results, how should we interpret Starmer’s plans?

    Continuities and change

    Amid all the crisis diplomacy and commentary suggesting this might be the end of the trans-Atlantic alliance, continuity as well as change can be observed.

    One of the most striking examples is the extent to which Starmer emphasises Britain’s longstanding self-perception as a “bridge” between the US and Europe. While recent turmoil has prompted Germany’s new Chancellor Friedrich Merz to declare the need for strategic independence from the US, Starmer continues to depict the US as the “indispensable” ally with whom Britain must strengthen ties.

    Considered alongside Britain’s deep integration in the US’s defence and intelligence architecture, including through AUKUS – with which Trump seemed unfamiliar – it is unlikely Britain will break with America. In fact, it may even strengthen its relationship if Trump’s remarks about a UK-US trade agreement are to be believed.

    For some, these structural explanations suffice when considering Britain’s commitment to the “special relationship” and its identity as the transatlantic bridge. However, psychological factors are also worth considering. Britain’s relationship with the US has been a crucial element of Britain’s pretensions to global leadership since the second world war.

    The uncomfortable truth about bridges is that they get walked over, as was evident when Starmer was blindsided by the US decision to suspend military aid to Ukraine.

    Europe between the US and Russia

    With regard to Europe, it is another case of “plus ça change”. As in 1945, Europe again finds itself caught in the middle between Russia and the US. Critics might say the Europeans should have seen this coming.

    Following the 2022 invasion, Germany, Europe’s most significant economy, proclaimed the moment as one of Zeitenwende, or a “turning point”. However, it subsequently failed to fully substantiate the claim.

    Recently, President of the European Commission and former German Defence Minister Ursula von der Leyen has proposed a “Rearm Europe Plan” that could see up to €800 billion (A$1.36 trillion) allocated to European defence. Whether this materialises remains to be seen.

    France has sought to assume its traditional leading role in advocating for Europe’s strategic autonomy from the US. President Emmanuel Macron has been a prominent figure, but his plan for a partial one-month truce has garnered only lukewarm support.

    However, Putin and Trump do have their admirers in Europe. What is perhaps surprising is that some of this has been too much even for the radical right to stomach – Nigel Farage, for example, leaped to Britain’s defence after Vance’s disparaging remarks. This only underscores the differences in attitudes towards Ukraine between MAGA Americans and Europeans.

    Starmer has undoubtedly secured diplomatic plaudits. However, the structural forces at play suggest that his “coalition of the willing”, if it sticks to outdated ideas, will struggle to make liberal democracy great again, much as that is needed.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Can the UK prime minister make liberal democracies great again? – https://theconversation.com/can-the-uk-prime-minister-make-liberal-democracies-great-again-251360

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: How Trump is weaponising the Department of Justice, and the ‘dark’ tactic he’s using to get away with it

    Source: The Conversation (Au and NZ) – By Stephen Harrington, Associate Professor, School of Communication, Queensland University of Technology

    It’s hard to keep track of US President Donald Trump’s many notable acts since returning to the White House. His recent pro-Russia stance on the war in Ukraine has, rightly, received a lot of attention.

    But for every big moment, there are others that fly under the radar. One such issue is the politicisation of the Department of Justice (DoJ).

    Although there is longstanding precedent that the DoJ remains politically neutral in its operations, recent events have indicated a dramatic break from that tradition.

    And, importantly, Trump has been laying the groundwork to justify this for nearly two years, using a propaganda tactic that’s been employed by authoritarian governments throughout history.

    Strategic sidelining

    The current administration has attempted to fire or sideline anyone at the DoJ who was involved with prior investigations and prosecutions of the now-president.

    This includes special counsel Jack Smith’s investigations into several aspects of Trump’s wrongdoing, which have since ended. Several lawyers have been fired, ostensibly because “the Acting Attorney-General does not trust these officials to assist in faithfully implementing the President’s agenda”.

    This action is not only vindictive, but likely designed to intimidate would-be investigators and make them think twice before further examining any wrongdoing by Trump or his associates.

    Equally noteworthy has been the department’s attempts to drop corruption charges against New York mayor Eric Adams.
    The official reason is that pursuing the charges might “interfere” with Adams’ reelection campaign.

    In reality, however, Adams has been accused of cutting a deal with the administration: he agrees to assist with Trump’s immigration crackdown in return for having the charges against him withdrawn (although not dropped entirely).

    Adams denies the existence of a quid pro quo, but he did joke about it on national television with Tom Homan, Trump’s “Border Czar”.

    So deeply problematic was all this that two US attorneys for the Southern District of New York opted to resign in protest, rather than be party to what they saw as a nakedly corrupt act.

    The whole scenario is eerily reminiscent of 1973’s “Saturday Night Massacre”, when President Richard Nixon ordered his Attorney-General Elliot Richardson to fire the special prosecutor investigating the Watergate scandal.

    Nixon eventually had his way, but not before refusals and resignations from both Richardson, and the Deputy Attorney-General William Ruckleshaus.

    But, where Nixon’s move dramatically hastened his own downfall, Trump’s actions have barely raised an eyebrow. Why?

    The propaganda play

    The answer lies in a propaganda technique known as “accusation in a mirror”, which entails accusing one’s opponents of the very wrongdoing one plans to commit.

    As one legal scholar explains, it’s:

    a rhetorical practice in which one falsely accuses one’s enemies of conducting, plotting, or desiring to commit precisely the same transgressions that one plans to commit against them.

    Accusation in a mirror has been used in the past, including in the Rwandan genocide. There, trusted voices claimed the Tutsi wanted to “exterminate” the Hutu. Tragically, it helped bring about the exact opposite circumstance.

    Similarly, in February 2022 Russian President Vladimir Putin accused the Ukrainian government of committing genocide against Russian-speaking populations in the Donbas region. This baseless accusation provided a justification for invading Ukraine, which mirrored Russia’s own indiscriminate shelling of Ukrainian civilians.

    We suggest Trump has been using this technique since he was first criminally indicted, in early 2023, on 34 felony charges related to the falsification of business records. He and his supporters have insisted the department, under President Joe Biden, was “weaponised” against him.

    Trump repeatedly claimed those charges – and subsequent indictments – were a politically motivated “witch hunt”. He reiterated these claims in his first speech to Congress.

    Many elected Republicans have also supported and amplified that narrative.

    These claims of victimhood have helped prime Trump’s base to appraise any subsequent legal scrutiny of him as purely partisan, and therefore invalid.

    In reality, the facts were straightforward. Prosecutors were sure there was enough proof to proceed with the case, including evidence Trump illegally kept classified documents at his Mar-a-Lago residence, and obstructed attempts to retrieve them.

    In a functioning legal system, nobody is “above the law”. This means even former presidents can be prosecuted if there’s enough evidence.

    Yet Trump’s accusations of a partisan DoJ completely reframed legitimate investigations into alleged political vendettas. In doing so, it effectively justified his subsequent decisions.

    A self-fulfilling prophecy

    The idea that “if they did it to me, I’m entitled to do it back” was made explicit by Trump in late 2023.

    When asked if he would use the DoJ to go after his political rivals, Trump argued he would only be levelling the playing field, stating:

    they’ve already done it, but if they want to follow through on this, yeah, it could certainly happen in reverse.

    In short, Trump’s false claim of being victimised by a politicised DoJ served as moral cover for his own politicisation of it.

    This is a textbook example of how accusation in a mirror can help manufacture the reality it pretends to condemn.

    Addressing the problem

    This tactic has long been a play by totalitarian and authoritarian leaders.

    Foundational propaganda scholars such as Hannah Arendt and Jacques Ellul highlighted how authoritarian rulers often repeat falsehoods – flipping the aggressor and victim – until the masses become desensitised, alienated and confused.

    Once enough people believe the system is already corrupt and untrustworthy, they are less likely to be shocked by an actual purge (such as firing DoJ officials).

    The implications of such tactics extend internationally, not just to the US.

    History cries out to us about the risks of this sort of public discourse. It erodes trust in institutions and liberal democratic processes, paving the road for leaders to undermine them further, corrupting the system in the name of rooting out corruption.

    Ultimately, one of the best antidotes is awareness. By exposing these tactics, we can better safeguard against disinformation, protect the rule of law and hold leaders accountable.

    Stephen Harrington receives funding from the Australian Research Council, for the Discovery Project ‘Understanding and Combatting “Dark Political Communication”‘.

    Timothy Graham receives funding from the Australian Research Council (ARC) for his Discovery Early Career Researcher Award, ‘Combatting Coordinated Inauthentic Behaviour on Social Media’. He also receives ARC funding for the Discovery Project, ‘Understanding and Combatting “Dark Political Communication”‘.

    – ref. How Trump is weaponising the Department of Justice, and the ‘dark’ tactic he’s using to get away with it – https://theconversation.com/how-trump-is-weaponising-the-department-of-justice-and-the-dark-tactic-hes-using-to-get-away-with-it-250760

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Russia: NSU Graduates Create a “Smart Mirror”

    Translartion. Region: Russians Fedetion –

    Source: Novosibirsk State University – Novosibirsk State University –

    The Telegram bot “Smart Mirror” appeared a month ago. The application is available to any user of this messenger. The author of the product is a specialist of the NSU Startup Studio and deputy director of the company “Save Technologies” Ksenia Ivanova. Now students of the Institute of Intelligent Robotics of NSU have joined the development as part of their course on project activities.

    This TG application can also be used as a regular mirror if you don’t have one at hand, but need to fix your hair or refresh your makeup. However, its capabilities are not limited to this, because this is not a simple mirror, but a “smart” one.

    So far, the Telegram bot can identify several skin conditions. It estimates the percentage of how healthy your skin is and can recognize signs of several problems. Such as acne, psoriasis, eczema, warts, ringworm. If it determines the skin is healthy, it will advise you to continue your current care and use sunscreen. If the Smart Mirror suspects any abnormalities in your skin condition, it will advise you to see a specialist for a more detailed diagnosis or problem determination, and then for treatment.

    — During the joint work of the NSU Startup Studio with a company producing non-medical skin care products on another project, we came up with the idea of such an application, but we did not intend to sell it, since the problem solved by the mirror has great social significance. We are developing it for two reasons: we see a serious problem in the market, when women cannot decide which products to use, which of them are effective and whether they help over time.

    We found a suitable dataset and models of skin conditions in the public domain, on the basis of which we trained our application to recognize skin conditions. We used the open model yolo8 as a basis for recognition and mediapipe as an auxiliary library. It is important that the model is trained on a dataset of diseases, for us this is a good social start, but then we will enrich it with those problems that everyone may have, – said Ksenia Ivanova.

    The “Smart Mirror” works simply: the user opens the application in Telegram, grants it access to the camera of their smartphone, slowly turns their face in front of the display, on which the answer appears after a few minutes. You can also use the application via a computer, but due to the quality of the camera, a smartphone is still preferable. It is important that there is sufficient lighting, it is best to sit opposite the light source.

    The developers recommend using the Smart Mirror in the morning – after using your daily skin care products, but before applying makeup – through it, the Smart Mirror will not see the real state of your skin and can determine it as healthy with a high degree of probability, without noticing any problematic conditions, if they exist, but are hidden under a layer of foundation and powder.

    The Smart Mirror launched a month ago, but its creators have already received a lot of positive feedback about their application. Many found it interesting and useful. But the developers are not going to stop there.

    — So far, we have presented the beta version of our application to users so that they can get to know it and learn how it works. We want our Smart Mirror to be in demand, so we have developed a plan for the further development of our project and want to teach our application a lot more. For example, to remind about the need to remove makeup before skin monitoring. We will also expand the list of unhealthy skin conditions that the Smart Mirror will be able to recognize, for example, we will definitely include such a skin problem as rosacea. We will also introduce recommendations for skin care – both healthy and problematic. Since we are not going to commercialize our project, our chatbot will not recommend any specific brands of skin care products, but will indicate the active ingredients that should be paid attention to when choosing a cream or lotion. We also plan to teach the Smart Mirror to offer users instructions for self-massage of the face and exercises for the elasticity of the skin and facial muscles, — said Ksenia Ivanova.

    According to the developers, the “Smart Mirror” should become a faithful assistant for its users and a guide on the path to maintaining the beauty and health of the skin. To do this, they plan to teach the application to make a high-quality analysis of its condition so that users can evaluate how effective their actions were aimed at skin care and overcoming existing problems.

    — Many women are concerned about such a problem as bags under the eyes. We want to teach our “Smart Mirror” to help solve this problem. The user looks into it in the morning, the application measures the volume of bags under the eyes and gives its recommendations regarding the drinking regime, duration of sleep and other important points in this case. If they are followed, the user can return to the application in the evening, as well as after a few days, to find out whether changes have occurred and how noticeable they were, — explained Ksenia Ivanova.

    The TG application “Smart Mirror” is available at the link: HTTPS: //t. TA/ARMIRRORBOT

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI China: US pauses intel sharing with Ukraine: CIA chief

    Source: China State Council Information Office

    U.S. President Donald Trump (2nd L) welcomes Ukrainian President Volodymyr Zelensky (2nd R) at the White House in Washington, D.C., the United States, on Feb. 28, 2025. [Photo/Xinhua]

    The director of the U.S. Central Intelligence Agency said Wednesday that the United States has paused intelligence support to Ukraine, on top of halting weapons shipments to the country that’s still at war with Russia.

    John Ratcliffe, the CIA chief, said in an interview with Fox Business’ Maria Bartiromo that “(U.S. President) Trump had a real question about whether President Zelensky was committed to the peace process, and he said let’s pause.”

    The decision came after a clash between Trump and Ukrainian President Volodymyr Zelensky at the White House on Friday, where Trump demanded gratitude from Zelensky for the aid Washington provided to Kiev. The Ukrainian leader was asked to leave the White House without signing a minerals deal with Trump as originally planned.

    Zelensky has since been trying to mend the relationship with the U.S. administration by efforts including sending a letter to Trump expressing his willingness “to come to the negotiating table as soon as possible to bring lasting peace closer,” Trump said in his address to a joint session of Congress on Tuesday night.

    “I want to give a chance to think about that and you saw the response that President Zelensky put out,” Ratcliffe told Bartiromo on Wednesday. “So I think on the military front and the intelligence front, the pause that allowed that to happen, I think will go away.”

    “And I think we’ll work shoulder to shoulder with Ukraine,” Ratcliffe said in an expression of optimism, adding that Washington and Kiev would work together to “put the world in a better place for these peace negotiations to move forward.”

    MIL OSI China News –

  • MIL-OSI Economics: The IMF at Eighty

    Source: International Monetary Fund

    Keynote Speech by Deputy Managing Director Nigel Clarke
    at a Symposium on the Future of International Cooperation on the 80th Anniversary of the End of World War II
    Tokyo, Japan, March 6, 2025 

    March 5, 2025

    (As Prepared for Delivery)

    A very good morning to you all. Kudo-san: thank you so much for those kind words. It is a great pleasure to be here in Japan.

    Dear colleagues, let me begin by relaying Managing Director Kristalina Georgieva’s regret for not being able to be with us today. She was very much looking forward to her trip to Tokyo, and has asked me to share with you her best wishes.

    I would like to start with a deep note of appreciation for our host country: a pillar of regional and global stability, a tireless advocate of trade, a technology leader and innovator, and a nation proudly on the move. For the IMF, Japan is a true partner, always generous in its support for our work. To the people of Japan the IMF says: arigatō goza‑i‑mas—thank you.

    As this conference reflects on the state of the world 80 years after the end of World War Two, let me also salute the post-war rebirth of Japan. Who in 1945 could have imagined the economic miracle that would come—and the transformation of former foes into friends and allies? Living proof that prosperity and friendship can triumph.

    So much of the global progress of the post-war decades was the result of a grand experiment in economic cooperation whose roots traced back to a conference of forty nations at Bretton Woods, New Hampshire in July 1944. The core idea at Bretton Woods was both bold and simple: a system where interests would be secured not only by geopolitical heft, but by mutually beneficial cooperation. This is the core principle behind the creation of the IMF. It is the principle we still serve today.

    After the war, reconstruction progressed rapidly, giving rise to new structures, new jobs, new trade, and new members. In 1952, Japan and West Germany were welcomed into the IMF’s family of nations.

    The Fund played its designated part not so much by financing global reconstruction and development—that was the World Bank’s job—but by supporting financial stability. A system of regular peer review of national economic prospects and policies was transformed from the black ink of Article IV of our founding Treaty to a familiar and appreciated reality.

    And thus were established the three core functions of the IMF:

    • First, our macroeconomic surveillance, which would bring in many newly independent nations starting in the late 1950s, followed by the Russian Federation and all the nations of the former Soviet bloc in the 1990s, such that today it spans almost all countries—a global perspective unique to the Fund.
    • Second, our support for macroeconomic programs to restore economic and financial stability to countries rich and poor alike when in distress, combining agreed policy actions to remedy underlying economic weaknesses with IMF lending and reserve creation—the latter again being a unique capacity bestowed upon the Fund.
    • And third, our support for capacity development, most generously financed from the start by Japan, alongside others.

    Through the many post-war episodes of mistrust and confrontation, the IMF has always remained a place where governance works; where information and knowledge are freely exchanged; where policy lessons from one country are shared for the benefit of many others; where efficiency meets effectiveness; and where members at odds with each other sit at one table and discuss matters calmly. This is the tangible, everyday reality of the Fund.

    Over the years we have, of course, had both successes and failures, but I would argue that the former outnumber the latter. I think for instance of our programs with the UK in 1977, India in 1991, or Brazil in 2002, and indeed of the examples being set today by the former program countries of East Asia and the euro area. Successes, yet each difficult in its own way when crisis raged.

    As finance minister of Jamaica during difficult times, I had the opportunity to see the Fund in action from the other side of the table. It was obvious to me then—as it is now—that the IMF teams had the knowledge, the experience, and the systems. They knew what they were doing.

    At the Fund, one foundational reality is well understood: countries are not companies, and in hard times the hardships of the people must always be addressed. It is the IMF that provides the closest thing sovereign states have to a framework to secure a fresh start. It is a unique and vital function for the world.

    And rarely does the IMF see a quiet moment. Today, as we confront a world of low growth, high prices, and high debt, we are warning countries that there is no room for complacency on inflation; advising them on how best to rebuild their macroeconomic buffers for the new shocks that will inevitably come; and getting more granular in our engagement on policies to lift productivity and create better jobs.

    Colleagues, we are at a new time of great flux for the world economy, with many countries reassessing their approaches, including in the face of structural transformations related to technology, demographics, and energy. Across the globe, voters have voiced anger at high prices and, in some cases, mistrust for an internationalist system they perceive as elitist and exclusionary. A chasm has opened between aspiration and reality—and that, in part, is fueling a challenge to the old system, with all the attendant uncertainty.

    So let me conclude by sharing a few forward-looking thoughts on how, as the world navigates these choppy waters, the Fund can help steady the ship.

    Four points:

    • First, in a tightly interconnected world, stability matters to everybody. Our mandate to promote international monetary cooperation sits at the heart of what we do, and has never mattered more than now, after 80 years of ever-closer integration. Like a fireman who douses a fire in one house and thus saves the neighborhood, when the IMF helps stabilize one country, it helps all others—we know how easily something small can become something big. The Fund is a seasoned repository of knowledge on how to do this, and so we shall remain. Whether it be crisis prevention through surveillance, crisis management through policy advice and lending, or resilience through capacity development, stability will remain our core mission. This means helping countries to design well phased and well communicated plans for budget consolidation; to maintain effective monetary policies to contain inflation; to safeguard external stability; to ensure financial systems are robust; and much more. This is our bread and butter.
    • Second, growth requires stability and stability requires growth. Ultimately, the way to ensure that economies can create jobs for their people and shoulder debt is through robust trend growth. And here I mean growth built on productivity gains and efficient resource allocation, not temporary stimulus. At the IMF, helped by our new Advisory Council on Entrepreneurship and Growth, we intend to identify positive lessons wheresoever they may be, and share them across our membership—while also helping countries harness technological advancement, notably in AI. Smaller government footprints will help in some cases, as will smarter tax regimes, more efficient public spending and better infrastructure, stronger bankruptcy frameworks, simpler and better regulations, more flexible labor markets with strong social safety nets, and deeper, more liquid capital markets, including venture capital. It is a broad and ambitious agenda.
    • Third, stability requires global macroeconomic balance. The IMF’s purposes include not only facilitating the expansion of international trade to contribute to the promotion and maintenance of high levels of employment and real income, but helping ensure that trade growth is balanced. Yet we live in an imbalanced world, with excessive external surpluses for some countries and excessive deficits for others, potentially sowing the seeds of future instability. At the Fund we understand that external imbalances reflect domestic imbalances, with some countries consuming or investing too much and others too little: a challenge calling out for the concerted deployment of the full macroeconomic policy toolkit. These are deep-seated problems, reflecting policy-induced distortions, exchange rates, institutional depth, reserve currencies, demographics, wealth and income levels, technology, culture, history, and more. We will continue to work with our members to lessen the degree of disequilibrium in their international balances of payments.
    • Fourth and last, as the global system reconfigures, agility will be key. Already in recent years, as geoeconomic fragmentation set in, many countries coalesced into groupings of common interest. Now, the trend continues, with an increasing emphasis on regional trade and regional financing arrangements. In a variable-geometry world, the IMF will respond as needed, flexibly, including to serve regional needs and explore ways to strengthen the global financial safety net for the good of all. For 80 years, from the gold standard to flexible exchange rates, from engaging with advanced economies to rescuing emerging markets to supporting low-income countries, the Fund has responded to changing circumstances and evolved with the times. We will preserve this tradition.

    In these four points I am offering a vision of an IMF that will remain faithful to, and be guided by, its core purposes as laid out in our 191‑nation Articles of Agreement—yet will be nimble, responding to the changing environment as necessary so that we can continue to serve our membership to good effect. So without further ado, let me leave you to reflect, perhaps, on my four themes—stability, growth, balance, and agility—and how they can fit together to shape a Fund for our changing times.

    I look forward to hearing your discussions today—and will be particularly interested in hearing your thoughts on Japan’s role in this new world as a champion of regional and global economic cooperation.

    Thank you

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER:

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics –

  • MIL-OSI Russia: The IMF at Eighty

    Source: IMF – News in Russian

    Keynote Speech by Deputy Managing Director Nigel Clarke
    at a Symposium on the Future of International Cooperation on the 80th Anniversary of the End of World War II
    Tokyo, Japan, March 6, 2025 

    March 5, 2025

    (As Prepared for Delivery)

    A very good morning to you all. Kudo-san: thank you so much for those kind words. It is a great pleasure to be here in Japan.

    Dear colleagues, let me begin by relaying Managing Director Kristalina Georgieva’s regret for not being able to be with us today. She was very much looking forward to her trip to Tokyo, and has asked me to share with you her best wishes.

    I would like to start with a deep note of appreciation for our host country: a pillar of regional and global stability, a tireless advocate of trade, a technology leader and innovator, and a nation proudly on the move. For the IMF, Japan is a true partner, always generous in its support for our work. To the people of Japan the IMF says: arigatō goza‑i‑mas—thank you.

    As this conference reflects on the state of the world 80 years after the end of World War Two, let me also salute the post-war rebirth of Japan. Who in 1945 could have imagined the economic miracle that would come—and the transformation of former foes into friends and allies? Living proof that prosperity and friendship can triumph.

    So much of the global progress of the post-war decades was the result of a grand experiment in economic cooperation whose roots traced back to a conference of forty nations at Bretton Woods, New Hampshire in July 1944. The core idea at Bretton Woods was both bold and simple: a system where interests would be secured not only by geopolitical heft, but by mutually beneficial cooperation. This is the core principle behind the creation of the IMF. It is the principle we still serve today.

    After the war, reconstruction progressed rapidly, giving rise to new structures, new jobs, new trade, and new members. In 1952, Japan and West Germany were welcomed into the IMF’s family of nations.

    The Fund played its designated part not so much by financing global reconstruction and development—that was the World Bank’s job—but by supporting financial stability. A system of regular peer review of national economic prospects and policies was transformed from the black ink of Article IV of our founding Treaty to a familiar and appreciated reality.

    And thus were established the three core functions of the IMF:

    • First, our macroeconomic surveillance, which would bring in many newly independent nations starting in the late 1950s, followed by the Russian Federation and all the nations of the former Soviet bloc in the 1990s, such that today it spans almost all countries—a global perspective unique to the Fund.
    • Second, our support for macroeconomic programs to restore economic and financial stability to countries rich and poor alike when in distress, combining agreed policy actions to remedy underlying economic weaknesses with IMF lending and reserve creation—the latter again being a unique capacity bestowed upon the Fund.
    • And third, our support for capacity development, most generously financed from the start by Japan, alongside others.

    Through the many post-war episodes of mistrust and confrontation, the IMF has always remained a place where governance works; where information and knowledge are freely exchanged; where policy lessons from one country are shared for the benefit of many others; where efficiency meets effectiveness; and where members at odds with each other sit at one table and discuss matters calmly. This is the tangible, everyday reality of the Fund.

    Over the years we have, of course, had both successes and failures, but I would argue that the former outnumber the latter. I think for instance of our programs with the UK in 1977, India in 1991, or Brazil in 2002, and indeed of the examples being set today by the former program countries of East Asia and the euro area. Successes, yet each difficult in its own way when crisis raged.

    As finance minister of Jamaica during difficult times, I had the opportunity to see the Fund in action from the other side of the table. It was obvious to me then—as it is now—that the IMF teams had the knowledge, the experience, and the systems. They knew what they were doing.

    At the Fund, one foundational reality is well understood: countries are not companies, and in hard times the hardships of the people must always be addressed. It is the IMF that provides the closest thing sovereign states have to a framework to secure a fresh start. It is a unique and vital function for the world.

    And rarely does the IMF see a quiet moment. Today, as we confront a world of low growth, high prices, and high debt, we are warning countries that there is no room for complacency on inflation; advising them on how best to rebuild their macroeconomic buffers for the new shocks that will inevitably come; and getting more granular in our engagement on policies to lift productivity and create better jobs.

    Colleagues, we are at a new time of great flux for the world economy, with many countries reassessing their approaches, including in the face of structural transformations related to technology, demographics, and energy. Across the globe, voters have voiced anger at high prices and, in some cases, mistrust for an internationalist system they perceive as elitist and exclusionary. A chasm has opened between aspiration and reality—and that, in part, is fueling a challenge to the old system, with all the attendant uncertainty.

    So let me conclude by sharing a few forward-looking thoughts on how, as the world navigates these choppy waters, the Fund can help steady the ship.

    Four points:

    • First, in a tightly interconnected world, stability matters to everybody. Our mandate to promote international monetary cooperation sits at the heart of what we do, and has never mattered more than now, after 80 years of ever-closer integration. Like a fireman who douses a fire in one house and thus saves the neighborhood, when the IMF helps stabilize one country, it helps all others—we know how easily something small can become something big. The Fund is a seasoned repository of knowledge on how to do this, and so we shall remain. Whether it be crisis prevention through surveillance, crisis management through policy advice and lending, or resilience through capacity development, stability will remain our core mission. This means helping countries to design well phased and well communicated plans for budget consolidation; to maintain effective monetary policies to contain inflation; to safeguard external stability; to ensure financial systems are robust; and much more. This is our bread and butter.
    • Second, growth requires stability and stability requires growth. Ultimately, the way to ensure that economies can create jobs for their people and shoulder debt is through robust trend growth. And here I mean growth built on productivity gains and efficient resource allocation, not temporary stimulus. At the IMF, helped by our new Advisory Council on Entrepreneurship and Growth, we intend to identify positive lessons wheresoever they may be, and share them across our membership—while also helping countries harness technological advancement, notably in AI. Smaller government footprints will help in some cases, as will smarter tax regimes, more efficient public spending and better infrastructure, stronger bankruptcy frameworks, simpler and better regulations, more flexible labor markets with strong social safety nets, and deeper, more liquid capital markets, including venture capital. It is a broad and ambitious agenda.
    • Third, stability requires global macroeconomic balance. The IMF’s purposes include not only facilitating the expansion of international trade to contribute to the promotion and maintenance of high levels of employment and real income, but helping ensure that trade growth is balanced. Yet we live in an imbalanced world, with excessive external surpluses for some countries and excessive deficits for others, potentially sowing the seeds of future instability. At the Fund we understand that external imbalances reflect domestic imbalances, with some countries consuming or investing too much and others too little: a challenge calling out for the concerted deployment of the full macroeconomic policy toolkit. These are deep-seated problems, reflecting policy-induced distortions, exchange rates, institutional depth, reserve currencies, demographics, wealth and income levels, technology, culture, history, and more. We will continue to work with our members to lessen the degree of disequilibrium in their international balances of payments.
    • Fourth and last, as the global system reconfigures, agility will be key. Already in recent years, as geoeconomic fragmentation set in, many countries coalesced into groupings of common interest. Now, the trend continues, with an increasing emphasis on regional trade and regional financing arrangements. In a variable-geometry world, the IMF will respond as needed, flexibly, including to serve regional needs and explore ways to strengthen the global financial safety net for the good of all. For 80 years, from the gold standard to flexible exchange rates, from engaging with advanced economies to rescuing emerging markets to supporting low-income countries, the Fund has responded to changing circumstances and evolved with the times. We will preserve this tradition.

    In these four points I am offering a vision of an IMF that will remain faithful to, and be guided by, its core purposes as laid out in our 191‑nation Articles of Agreement—yet will be nimble, responding to the changing environment as necessary so that we can continue to serve our membership to good effect. So without further ado, let me leave you to reflect, perhaps, on my four themes—stability, growth, balance, and agility—and how they can fit together to shape a Fund for our changing times.

    I look forward to hearing your discussions today—and will be particularly interested in hearing your thoughts on Japan’s role in this new world as a champion of regional and global economic cooperation.

    Thank you

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER:

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/03/05/sp030625-dmd-imfat80

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI USA: Wyden, Merkley, Colleagues Reaffirm Congress’ Authority to Maintain Trade Restrictions on Russia

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    March 05, 2025

    Washington D.C.—U.S. Senators Ron Wyden and Catherine Cortez Masto, D-Nev., today led Senate colleagues, including Senator Jeff Merkley, in a letter to Donald Trump reaffirming Congress’ authority to maintain trade restrictions on the Russian Federation while it continues its war of aggression against Ukraine. 

    “Vladimir Putin is a ruthless dictator who has led the Russian Federation into a war of aggression against Ukraine with the explicit goal of denying Ukraine and its people their collective rights to independence, sovereignty, and territorial integrity,” wrote the senators after Trump sandbagged talks between the United States and Ukraine last Friday and claimed Ukraine “should have never started [the war].”“Our country, in coordination with our allies and partners and with bipartisan support has imposed sweeping financial sanctions, stringent export controls, and aggressive trade restrictions on the Russian Federation.”

    In 2022, Congress passed the Suspending Normal Trade Relations with Russia and Belarus Act which revoked Russia’s permanent normal trade relations status to ensure Russian goods and services do not enjoy privileged, “most-favored nation” access to the U.S. market. Congress also passed the Ending Importation of Russian Oil Act which banned the importation of all energy products from the Russian Federation.

    According to these laws, the Russian Federation must reach an agreement relating to the withdrawal of its forces and cessation of military hostilities that is accepted by the free and independent government of Ukraine, recognize the right of the people of Ukraine to independently and freely choose their own government, and pose no immediate military threat of aggression to any NATO member before the president can restore normal trade relations.

    “In light of your worrisome statements, we wish to remind you that you must not—and cannot, under statute—attempt to restore normal trade relations or lift the import ban on Russian energy products unless and until Ukraine’s peace demands are met and their free and independent government has accepted a peace agreement,” continued the senators. “Ukraine must be at the table to determine its future, and conditions for peace cannot be imposed on Ukraine.”

    The letter was led by Wyden and Cortez Masto. In addition to Wyden, Cortez Masto and Merkley the letter was signed by Senators Michael Bennet, D-Colo., Amy Klobuchar, D-Minn., Gary Peters, D-Mich., Jacky Rosen, D-Nev., Chris Van Hollen, D-Md., Raphael Warnock, D-Ga., and Peter Welch, D-Vt.

    The full text of the letter is here.

    MIL OSI USA News –

  • MIL-OSI USA: Trump Touts Alaska LNG as a Top Priority of New Administration

    US Senate News:

    Source: United States Senator for Alaska Dan Sullivan
    03.05.25
    WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska) today celebrated President Donald Trump’s endorsement of the Alaska Liquefied Natural Gas (LNG) Project as a top priority of his new administration in the President’s joint address to Congress last night.
    Sen. Sullivan has been a relentless advocate for the Alaska LNG Project as an opportunity to provide abundant, clean-burning, low-cost energy to Alaskans, promote American energy security, and deepen America’s alliances with its Indo-Pacific partners, particularly Japan and South Korea. Following Russia’s invasion of Ukraine, Sen. Sullivan has taken four trips to Japan and South Korea to promote the project, talking to numerous potential investors and the senior-most government and private sector officials in each country. More recently, he has spoken directly with President Trump on several occasions about the project and gave him the comprehensive document called, “America’s Gasline.” The senator has also had extensive conversations with nearly all of President Trump’s cabinet officials about the Alaska LNG Project, garnering their support.
    “My administration is also working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner with investments of trillions of dollars each,” President Trump said. “There’s never been anything like that one. It will be truly spectacular. It’s all set to go. The permitting is gotten.”
    [embedded content]
    “The fact that the President of the United States was highlighting the Alaska LNG Project as one of the biggest things he wants to get done for America was huge for our state and huge for our country,” Sullivan said in an interview following the address. “It’s not going to happen overnight, but the fact that we have the President and his entire cabinet fully putting their shoulder into this was quite remarkable…Governor Dunleavy and I pitched the Trump administration on having the President mention this in his State of the Union…I hope a lot of Alaskans saw that we have been working this really hard, because we have a great opportunity—the private sector elements of this are coming together, the foreign government elements of this giant project are coming together. But when you get the President and his entire cabinet saying, we’re going to get this done, and he tells the American people that, I don’t think that’s ever happened before for Alaska…It was a big night for us, and I’m really excited.”
    The Alaska LNG Project will be capable of providing more than three billion cubic feet of low-cost, low-emission natural gas to Alaskans, Americans, and to allied nations around the world each day. It is also projected to create up to 10,000 construction and 1,000 operations jobs.
    Below is a timeline of Sen. Sullivan’s recent work on advancing the Alaska LNG Project and deepening the energy security ties between the U.S. and America’s Japanese and Korean allies.
    On February 24, 2025, Sen. Sullivan had an Alaska LNG focused meeting with Interior Secretary Doug Burgum at the Department of the Interior.
    On February 7, 2025, President Trump announced a “joint venture” on Alaska oil and gas between the United States and Japan.
    On January 8, 2025, Sen. Sullivan personally pitched President Trump on the Alaska LNG Project.
    On December 17, 2024, Sen. Sullivan focused on the Alaska LNG Project in his meeting with now-Secretary of Energy Chris Wright.
    In August of 2024, Sen. Sullivan participated in a bipartisan Senate delegation visit to Japan and South Korea, and discussed the Alaska LNG Project with numerous senior government and business leaders in both countries.
    In February 2024, Sen. Sullivan and seven of his Senate colleagues introduced a Senate resolution recognizing the importance of trilateral cooperation among the United States, Japan, and South Korea.
    On October 8, 2023, Sen. Sullivan penned an op-ed in the Anchorage Daily News urging Alaskans to unite in advancing the Alaska LNG Project as a critical solution to Alaska’s energy needs.
    In June 2023, Sen. Sullivan visited South Korea and Japan, where he met with senior government and private sector officials about the Alaska LNG Project. Similar to his October 2022 visit to Tokyo, Sen. Sullivan convened an Alaska LNG Summit of U.S. and Korean energy and policy leaders with the U.S. Embassy in Seoul. Following the visit, the U.S. Embassy in Seoul established an Alaska LNG Task Force.
    On May 18, 2023, Sen. Sullivan introduced the Indo-Pacific Strategic Energy Initiative Act, legislation to promote the financing and development of new energy infrastructure projects in the Indo-Pacific region—with a focus on natural gas—in order to end U.S. allies’ dependance on Russian natural gas in the wake of Russia’s invasion of Ukraine.
    In May 2023, Sen. Sullivan spoke at the Alaska Sustainable Energy Conference about the Alaska LNG Project and opportunities to deliver clean-burning, low-cost gas to Alaskans and to America’s Indo-Pacific allies.
    In May 2023, Sen. Sullivan, Sen. Lisa Murkowski (R-Alaska), and Rep. Mary Peltola (D-Alaska) welcomed a ruling from the U.S. Court of Appeals for the D.C. Circuit upholding the Federal Energy Regulatory Commission’s (FERC) approval of the Alaska LNG Project.
    On March 6, 2023, Sen. Sullivan led a letter with his Senate colleagues to U.S. Ambassador to Japan Rahm Emanuel urging the Biden administration to publicly support the export of abundant U.S. natural gas to America’s allies in Europe and Asia, particularly Japan, which has prioritized energy security in its term leading the G7.
    On December 16, 2022, Sen. Sullivan welcomed a new national security strategy and related documents released by Japanese Prime Minister Fumio Kishida that focuses on deepening Japan and the U.S.’s national security cooperation.
    In October 2022, Sen. Sullivan visited Japan and South Korea to advocate for the Alaska LNG Project. In Tokyo, Sen. Sullivan and Ambassador Emanuel convened an Alaska LNG Summit of U.S. and Japanese energy and policy leaders. Prior to the summit, the U.S. Embassy in Tokyo established an Alaska LNG Task Force.
    In June 2022, Sen. Sullivan and Gov. Mike Dunleavy (R-Alaska) visited Japan to meet with Japanese companies, utilities, and government ministries about the Alaska LNG Project.
    In August 2021, Sens. Murkowski and Sullivan secured a provision in the Infrastructure Investment and Jobs Act making the Alaska LNG Project eligible for a federal loan guarantee of roughly $30 billion that is indexed to inflation.
    In August 2020, the Department of Energy (DOE) issued a final, unconditional order authorizing the Alaska LNG Project to export LNG.
    In May 2020, FERC granted the Alaska Gasline Development Corporation (AGDC) authorization to construct and operate the Alaska LNG Project.
    Between 2014 and 2022, the Alaska LNG Project secured all of its necessary federal permits and authorizations.

    MIL OSI USA News –

  • MIL-OSI USA: Peters Reintroduces Bipartisan Legislation to Help Prevent Foreign Influence in U.S. Policy

    US Senate News:

    Source: United States Senator for Michigan Gary Peters

    WASHINGTON, DC – U.S. Senator Gary Peters (MI), Ranking Member of the Homeland Security and Governmental Affairs Committee, reintroduced two bipartisan bills to improve our nation’s ability to prevent foreign governments, including adversaries like the Chinese and Russian governments, from attempting to influence U.S. policy without making appropriate disclosures. The legislation would help close loopholes that foreign governments could exploit to conceal their roles in lobbying efforts.

    “The American people deserve complete transparency about who is trying to influence our political process,” said Senator Peters. “These bipartisan bills will help ensure foreign actors can’t exploit loopholes to hide their activities while attempting to shape policy in the United States. It’s a commonsense step to protect our national security and ensure our government is working in the best interests of the American people.” 

    The Lobbying Disclosure Improvement Act would improve transparency of the activities of lobbyists who represent foreign persons or organizations by requiring them to indicate whether they are taking advantage of an exemption under the Foreign Agent Registration Act (FARA) when they register under the Lobbying Disclosure Act. This would help the Department of Justice narrow the pool of registrants they are examining for potential violations, while not imposing any meaningful additional burden on registrants.

    The Disclosing Foreign Influence in Lobbying Act closes a loophole in the Lobbying Disclosure Act that foreign adversaries – including the Chinese government – can exploit to conceal their roles in lobbying efforts. Think tanks and law enforcement agencies have identified instances in which foreign adversaries exploited this loophole by using closely connected organizations and businesses to push their interests when lobbying the U.S. government. The bill makes clear that lobbying organizations must disclose when foreign governments and political parties participate in their lobbying efforts, regardless of any financial contribution to the lobbying effort.

    MIL OSI USA News –

  • MIL-Evening Report: Politics with Michelle Grattan: James Curran on Trump, Ukraine, shifting tectonic plates, and a bigger Australian defence bill

    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra

    The Trump presidency is turning much of the world order on its head. Tne United States president is arm-twisting Ukraine, playing nice with Russia, and using protection as an economic and political weapon.

    The Australian government is pessimistic about escaping American tariffs on aluminium and steel when a decision is announced next week. Meanwhile, the message from the US is clear: we need to boost defence spending.

    To discuss Trump Mark 2 on the world stage and what that means for Australia, we’re joined by James Curran, professor of modern history at the University of Sydney.

    Curran says,

    One gets the sense that we are looking at the kind of tectonic plates of world politics shifting before our very eyes.

    Trump is about might is right. He does have an expansionary view of American power in the western hemisphere if we are to judge him by his statements on the Panama Canal and Greenland. But I think more broadly, his interpretation of American power is to simply “get out of America’s way”.

    In terms of economic implications, [it’s] a confirmation that we are looking at the permanence of protectionism in the United States. This administration, along with the Biden administration and the first Trump administration, have been putting a wrecking ball through the multilateral trading system and the WTO. And that is certainly a not a good thing for free trade and for countries like Australia.

    Curran explains what America’s expectation that countries need to spend more on defence would mean for Australia,

    This has been the great concern, if you like, over a number of years – that Australia has got defence on the cheap, that it’s put so much of its national wealth into the middle class and welfare and infrastructure and developing the nation that it’s been able to rely on the American blanket of protection while it pursues its prosperity.

    So if [defence spending] is to rise to 3% [of GDP], then that’s going to mean, firstly, a concentration on what are the lower cost alternatives to defend this continent? And secondly, where will the trade offs come? What will be sacrificed from the national budget? And what political leader in this country will front the Australian people and squarely and honestly and earnestly have a conversation about these dramatic strategic circumstances and why greater sacrifice is required from Australians to enable a higher defence expenditure.

    Is the Trump world the new normal, or will this be over when Trump eventually leaves the White House?

    I’m a little bit sceptical about this idea that we grit our teeth and close our eyes and hope that the nightmare is over in four years time. There is a really big question mark over how America can snap back in terms of its institutional robustness. The pressure that the courts, the media and the Congress are under. Does this all just snap back in four years time? Do we really think that either a Republican or a Democrat successor to Trump will ride into Washington, down Pennsylvania Avenue in a glittering chariot of liberal internationalism? To say everyone shouldn’t worry because the liberal international order is back and it’s gleaming and it’s working.

    I really think this is up to America’s allies, both in Europe and in East Asia, to continue to protect as many of those rules and those institutions that have worked so well for so many of us, as much as they possibly can.

    Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Politics with Michelle Grattan: James Curran on Trump, Ukraine, shifting tectonic plates, and a bigger Australian defence bill – https://theconversation.com/politics-with-michelle-grattan-james-curran-on-trump-ukraine-shifting-tectonic-plates-and-a-bigger-australian-defence-bill-251486

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: PREPARED REMARKS: Sanders, Democratic Senators Force Republicans to Confront Hypocrisy on Ukraine and Putin

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders

    WASHINGTON, March 5 – Sen. Bernie Sanders (I-Vt.), alongside Sens. Chuck Schumer (D-N.Y.), Dick Durbin (D-Ill.), Chris Van Hollen (D-Md.), Richard Blumenthal (D-Conn.), Peter Welch (D-Vt.) and Michael Bennet (D-Colo.), today asked for unanimous consent on the Senate floor to pass a series of straightforward resolutions condemning Russia’s illegal, unprovoked invasion of Ukraine. The senators offered six resolutions clarifying that the United States stands with the people of Ukraine in defense of their democracy and condemns the dictator Vladimir Putin’s crimes against humanity. Republicans rose in opposition to every one. 

    The senators’ resolutions are statements of fact and principle, backed by evidence and long-standing American foreign policy, including:

    • Clarifying that Russia started the war against Ukraine.
    • Condemning Putin and Russian forces for their widespread war crimes and crimes against humanity in Ukraine.
    • Condemning Russia’s forcible abduction of at least 20,000 Ukrainian children and calls for their return to their families.
    • Reaffirming the support of the United States for Ukraine’s sovereignty in the face of Russia’s invasion.
    • Restating a simple but fundamental principle of international law and global stability: that you do not take the territory of another country by force.
    • Demanding that Putin immediately withdraw Russian forces from Ukraine, cease his attacks, and end this terrible war.

    Sanders’ remarks on the Senate floor were livestreamed here and are available below. 

    I am here tonight with colleagues who have worked extremely hard to protect the sovereignty of Ukraine and to defend democracy in that country and, in fact, throughout the world. 

    And I thank my colleagues for getting on the floor this evening and for the resolutions that they will be bringing forth. 

    M. President, I am not a historian. But I do know that for the last 250 years, since the inception of our great country, despite our imperfections, the United States has stood in the world as a symbol of democracy. And all over the world people have looked to our country as an example of freedom and self-governance to which the rest of the world could aspire. People have long looked to our Declaration of Independence and Constitution as blueprints for how to establish governments of the people, by the people and for the people. 

    M. President, tragically, all of that is now changing. As President Trump moves this country towards authoritarianism, he is aligning himself with dictators and despots who share his disdain for democracy and the rule of law. 

    Just last week, in a radical departure from long-standing U.S. policy, the Trump administration voted against a United Nations resolution which clearly stated that Russia began the horrific war in Ukraine. 

    That U.N. resolution also called on Russia to withdraw its forces from occupied Ukraine, in line with international law. The resolution was brought forward by our closest allies, including the United Kingdom, Australia, Canada, France, Germany, Japan and dozens of other democratic nations. Ninety-three countries at the U.N. voted YES on that resolution. 

    Rather than side with our long-standing allies to preserve democracy and uphold international law, President Trump voted with authoritarian nations like Russia, North Korea, Iran and Belarus to oppose the resolution. Many of the other opponents of that resolution are undemocratic nations propped up by Russian military aid. 

    But it wasn’t just the U.N. vote. Pathetically, President Trump also told an outrageous lie, claiming that it was Ukraine that started the war, not Russia. He also called President Zelensky a dictator, rather than the leader of a democratic nation, as he is. 

    M. President, as we discuss Ukraine tonight, it is terribly important that we not forget who Vladimir Putin is and why he is no friend of the United States, and why we should not be in an alliance with him against Ukraine. 

    Putin is the man who crushed Russia’s movement towards democracy after the end of the Cold War. Putin is a man who steals elections, murders political dissidents and crushes freedom of the press. He has maintained control in Russia by offering the oligarchs there a simple deal: If they grant him absolute power and share the spoils, he would let them steal as much as they wanted from the Russian people. The result: while the vast majority of the Russian population struggles economically, Putin and his fellow oligarchs stash trillions of dollars in offshore tax havens. 

    And so today, 26 years after he took power, Putin is the absolute ruler of Russia. And I think as everyone knows, Russia’s elections are blatantly fraudulent. A sham. 

    And Putin is the man who sparked the bloodiest war in Europe since World War II. 

    More than three years ago, on February 24, 2022, Putin ordered a full-scale invasion of Ukraine, in clear violation of the Charter of the United Nations and international law. Russian land, air and naval forces have attacked and occupied territory across Ukraine. 

    Since that terrible day, more than a million people have been killed or injured because of Putin’s war. Putin’s forces have massacred civilians and kidnapped thousands of Ukrainian children, bringing them back to Russian “re-education” camps. These atrocities led the International Criminal Court to issue an arrest warrant for Putin in 2023 as a war criminal. That’s who we are allying ourselves with. 

    And still, today, Russia continues its attacks, raining down hundreds of missiles and drones on Ukrainian cities. Russian forces illegally occupy about 20 percent of Ukraine’s sovereign territory. 

    M. President, this war could end today if Putin gave up his outrageous effort to conquer a neighboring country. The war could end today. The killing could stop right now, if Putin gave that order. 

    And that, simply, M. President, is what my resolution says to Vladimir Putin: Stop the killing. Obey international law. Withdraw your forces and cease your attacks on Ukraine. And I, honestly, don’t understand how anyone in the United States Senate could object to that simple demand. 

    M. President, now, more than at any time in recent history, it is imperative that the Senate come together in a bipartisan manner to make it clear that we stand for democracy, not authoritarianism; that we stand for international law, not conquest by force; and that we stand with Ukraine and fellow democracies throughout the world, and not with the murderous dictator of Russia. 

    MIL OSI USA News –

  • MIL-OSI Russia: Government meeting (2025, No. 7)

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    1. On the draft federal law “On ratification of the Agreement between the Government of the Russian Federation, the Central Bank of the Russian Federation and the Government of the Republic of Belarus, the National Bank of the Republic of Belarus on cooperation and exchange of information, including confidential information, in the field of supervision and (or) control over the financial market”

    The bill aims to ratify the agreement signed in Moscow on August 6, 2024.

    2. On amendments to certain acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Government Commission for the Development of Housing Construction and the Assessment of the Efficiency of the Use of Land Plots Owned by the Russian Federation)

    The draft act is aimed at granting the commission the authority to make decisions on the transfer of federal property to another level of public ownership.

    On Amendments to Certain Acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Government Commission for the Development of Housing Construction and the Assessment of the Efficiency of the Use of Land Plots Owned by the Russian Federation)

    The draft act is aimed at granting the commission the authority to make decisions on the transfer of federal property to another level of public ownership.

    3. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of improving the submission of reports by non-profit organizations)

    The bill is aimed at simplifying the procedure for submitting reports by non-profit organizations, including charitable, volunteer and socially oriented NPOs.

    4. On Amendments to the Resolution of the Government of the Russian Federation of July 28, 2018 No. 885 (in terms of amending the Regulation on the Federal Service for Supervision in Education and Science)

    The draft resolution is aimed at empowering Rosobrnadzor to determine the minimum number of points confirming successful completion of testing in a state or municipal general education organization by foreign citizens and stateless persons on knowledge of the Russian language, sufficient for mastering educational programs of primary general, basic general and secondary general education.

    Moscow, March 5, 2025

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-Evening Report: Elon Musk thinks the US should leave the UN – what if Trump does it?

    Source: The Conversation (Au and NZ) – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

    Getty Images

    When Donald Trump’s benefactor and cost-cutter-in-chief Elon Musk recently supported a call for the United States to quit NATO and the United Nations, it should perhaps have been more surprising.

    But the first months of the second Trump presidency have already seen key parts of the current international order undermined. Musk’s position fits a general pattern.

    Aside from the tilt towards a multipolar world order, the US now refuses to recognise the International Criminal Court, has slashed its foreign aid contributions, and has withdrawn from the World Health Organization, the UN Human Rights Council and the Palestinian relief agency UNRWA.

    With Trump’s domestic politics displaying a clear autocratic edge, the rejection of the founding principles and ideals of the UN comes into sharper relief. The intolerant and impatient negotiating approach he displayed with Ukraine’s President Volodymyr Zelensky also belies a disregard for cooperative and consensus-based diplomacy.

    The drive to slash the federal deficit dovetails with this general abandonment of expensive international commitments. If the Trump regime follows through on its apparent strategy of manufacturing crises to advance its agenda, then leaving the UN entirely is a logical next step.

    Undermined ideals

    This is all in stark contrast to the central role the UN has traditionally played within the US-led international order since 1945.

    Along with other institutions, the UN allowed the US to shape the international system in its own image and spread its domestic values and interests across the world. Along with NATO, the UN was designed as a global security institution to produce global stability.

    In theory at least, the political and economic values of the US and other democracies enabled the construction of the postwar order. According to political scientist John Ikenberry, this was based on “multilateralism, alliance partnerships, strategic restraint, cooperative security, and institutional and rule-based relationships”.

    But by the 21st century, US actions had undermined many of these principles. The US-led invasion of Iraq in 2003 bypassed the authority of the UN, causing then secretary-general Kofi Annan to declare that “from the charter point of view [the invasion] was illegal”.

    This undermined the legitimacy of the UN and America’s place within it. But it also diminished the organisation as a force for maintaining international security and national sovereignty in global affairs.

    The subsequent human rights violations by the US through its use of rendition, torture and detention at facilities such as Guantanamo Bay and Abu Ghraib further weakened the UN’s credibility as a protector of liberal international values.

    The US has also been a regular non-payer of UN fees, owing US$2.8 billion in early 2025. And it is one of the lowest contribtuors of military and police personnel to UN peacekeeping operations, despite paying nearly 27% of the overall budget.

    US versus UN

    Since the 1990s, several Republican politicians have argued for the US to withdraw entirely from the UN. In 1997, senator Ron Paul introduced the American Sovereignty Restoration Act, aimed at ending UN membership, expelling the UN headquarters from New York and ending US funding.

    Although it received minimal support and never reached committee hearings, Paul reintroduced the act in every congressional session until his 2011 retirement. It was then taken up by other Republicans, including Paul Broun and Mike Rogers.

    In December 2023, senator Mike Lee and representative Chip Roy led the introduction of the “Disengaging Entirely from the United Nations Debacle (DEFUND) Act”.

    Roy referenced the perceived negative treatment of Israel, the promotion of China, “the propagation of climate hysteria” and the US$12.5 billion in annual payments. Lee added:

    Americans’ hard-earned dollars have been funnelled into initiatives that fly in the face of our values – enabling tyrants, betraying allies, and spreading bigotry.

    Public polling in 2024 also showed only 52% of Americans had a favourable view of the UN. This opposition has deeper historical roots, too.

    In 1920, US isolationists blocked the ratification of the Treaty of Versailles, and with it US participation in the League of Nations (the predecessor to the United Nations). Although the US would interact with the League of Nations until the UN’s formation in 1945, it never became an official member.

    Criticism of the UN also has a bipartisan angle, with the US withdrawing funding of UNRWA in 2024 during Joe Biden’s presidency after Israel accused the agency of links to Hamas.

    A diminished UN

    If Trump harnesses these historical and modern forces to pull the US out of the UN, it would fundamentally – and likely irrevocably – undermine what has been a central pillar of the current international order.

    It would also increase US isolationism, reduce Western influence, and legitimise alternative security bodies. These include the Shanghai Cooperation Organisation, which the US could potentially join, especially given Russia and India are both members.

    More broadly, the reduced influence of the UN will endanger general peace and security in the international sphere, and the wider protection and promotion of human rights.

    There would be greater unpredictability in global affairs, and the world would be a more dangerous place. For countries big and small, a UN without the US will force new strategic calculations and create new alliances and blocs, as the world leaps into the unknown.

    Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

    – ref. Elon Musk thinks the US should leave the UN – what if Trump does it? – https://theconversation.com/elon-musk-thinks-the-us-should-leave-the-un-what-if-trump-does-it-251483

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Russia: Five best articles in Russian for 05.03.2025

    MIL Analysis: Here are the top five Russian language articles published today. The analysis includes five key articles prioritized at the moment.

    Long-term bank deposits are relevant in today’s analysis, but inflation is still high.

    Social infrastructure is productive. The Moscow Metro is improving every year, and it is again celebrating its results for the last two years on the Great Ring Line. In addition, there is a new function on the portal “Recognize Moscow” to facilitate information about the city of Moscow.

    Moscow is preparing for International Women’s Day, and you can already see decorations around the city in the form of posters and exhibitions dedicated to the women of Russia.

    From March 1 to May 31, 2025, applications are accepted for the All-Russian contest called “Golden Names of Higher Education”. The contest is open to faculty members.

    Below you can read one of the entries.

    1. Term matters – Russians are shifting their savings to long deposits.

    How did the bank deposit market change at the beginning of 2025?

    Russians’ demand for long deposits started to grow in January 2025 – customers are trying to lock in a high rate for a long term. According to the data of the platform “Finuservices” for the first two months of the year:

    • the share of deposits for 6 months decreased by 1.5 p.p., amounting to 54% of total deposits – the term is still the most popular;
    • the share of deposits for 3 months decreased by 1.3 p.p. to 25.2%;
    • the share of deposits for 3 months decreased by 1.5 p.p. to 25.2%. – to 25.2%;
    • the share of 1-month deposits also decreased by 1.3 p.p. to 3.1%;
    • the share of deposits for one year, on the contrary, increased by 3 p.p. to 13.7%;
    • deposits with maturity over one year also show insignificant growth.

    2. We invite GUU teachers to participate in the All-Russian contest “Golden Names of Higher Education”.

    From March 1 to May 31, 2025 applications are accepted for participation in the All-Russian Contest “Golden Names of Higher School”. We invite the professorial and pedagogical staff of the State University of Management to participate in the Contest.

    The contest “Golden Names of Higher School” is held by the Interregional Public Organization “League of Higher School Teachers” with the support of the Ministry of Science and Higher Education of the Russian Federation since 2017. It is aimed at identifying and supporting talented teachers and scientists who have made a significant contribution to the development of Russian higher education and science. Over 7 thousand teachers have participated in the Contest throughout its history.

    3. Moscow Metro celebrates two years of through traffic on the Great Ring Line, having served more than 740 million passengers.

    The Moscow Metro celebrates the second anniversary of the launch of through traffic on the Great Ring Line (BCL), a monumental achievement in the city’s transportation infrastructure. Since its full launch two years ago, the BCL has served more than 740 million passengers, changing the way Muscovites travel around the city.

    4. Everything about your capital city: how the personal account of the “Learn Moscow” portal has been updated.

    A new function has appeared in the user’s personal cabinet on the “Learn Moscow” portal. Now in the “Favorites” section you can create your own selections of online routes, articles about museums, monuments and buildings, as well as materials about people who have left their mark on the culture and history of the capital. This will make it easier for users to systematize information about the places they want to visit and find the content they like faster.

    5. “Such different girls, girls, women”: Glavarkhiv invites to the exhibition for March 8.

    The exhibition “Such Different Girls, Girls, Women” dedicated to International Women’s Day opened on Chistoprudny Boulevard and in Ekaterininsky Park. The exhibition includes photographs from the funds of the Moscow Glavarkhiv from the 1900s to the 1980s. The photos depict girls of different professions. The exhibition can be viewed until April 4.

    Learn more about MIL’s content and data services by visiting milnz.co.nz.

    Regards MIL!

    MIL OSI Russia News –

  • MIL-OSI: Descartes Announces Fiscal 2025 Fourth Quarter and Annual Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Record Income from Operations

    WATERLOO, Ontario and ATLANTA, March 05, 2025 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2025 fourth quarter (Q4FY25) and year (FY25) ended January 31, 2025. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

    “Fiscal 2025 was another year of growth for Descartes, highlighted by the addition of numerous complementary services to the Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO. “We believe these investments can help shippers, carriers, and logistics services providers manage the increased uncertainty and complexity that’s recently been introduced to the global trade environment. Our customers benefit from our diversity in international and domestic supply chains, our expertise with tariffs, sanctions and other global trade issues, and our expansive roster of connected trading partners as they navigate a quickly evolving trade landscape.”

    FY25 Financial Results
    As described in more detail below, key financial highlights for Descartes’ FY25 included:

    • Revenues of $651.0 million, up 14% from $572.9 million in the same period a year ago (FY24);
    • Revenues were comprised of services revenues of $590.2 million (91% of total revenues), professional services and other revenues of $55.1 million (8% of total revenues) and license revenues of $5.7 million (1% of total revenues). Services revenues were up 13% from $520.9 million in FY24;
    • Cash provided by operating activities of $219.3 million, up 6% from $207.7 million in FY24. Cash provided by operating activities was negatively impacted in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition;
    • Income from operations of $181.1 million, up 27% from $142.8 million in FY24;
    • Net income of $143.3 million, up 24% from $115.9 million in FY24. Net income as a percentage of revenues was 22%, compared to 20% in FY24;
    • Earnings per share on a diluted basis of $1.64, up 22% from $1.34 in FY24; and
    • Adjusted EBITDA of $284.7 million, up 15% from $247.5 million in FY24. Adjusted EBITDA as a percentage of revenues was 44%, compared to 43% in FY24.

    Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.

    The following table summarizes Descartes’ results in the categories specified below over FY25 and FY24 (dollar amounts in millions):

      FY25
    		   FY24  
    Revenues 651.0   572.9  
    Services revenues 590.2   520.9  
    Gross margin 76 % 76 %
    Cash provided by operating activities* 219.3   207.7  
    Income from operations 181.1   142.8  
    Net income 143.3   115.9  
    Net income as a % of revenues 22 % 20 %
    Earnings per diluted share 1.64   1.34  
    Adjusted EBITDA 284.7   247.5  
    Adjusted EBITDA as a % of revenues 44 % 43 %
             

    (*) FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

    Q4FY25 Financial Results
    As described in more detail below, key financial highlights for Q4FY25 included:

    • Revenues of $167.5 million, up 13% from $148.2 million in the fourth quarter of fiscal 2024 (Q4FY24) and down from $168.8 million in the previous quarter (Q3FY25);
    • Revenues were comprised of services revenues of $156.5 million (93% of total revenues), professional services and other revenues of $10.7 million (6% of total revenues) and license revenues of $0.3 million (1% of total revenues). Services revenues were up 15% from $135.7 million in Q4FY24 and up 5% from $149.7 million in Q3FY25;
    • Cash provided by operating activities of $60.7 million, up 19% from $50.8 million in Q4FY24 and up 1% from $60.1 million in Q3FY25;
    • Income from operations of $47.1 million, up 27% from $37.0 million in Q4FY24 and up 3% from $45.8 million in Q3FY25;
    • Net income of $37.4 million, up 18% from $31.8 million in Q4FY24 and up 2% from $36.6 million in Q3FY25. Net income as a percentage of revenues was 22%, compared to 21% in Q4FY24 and 22% in Q3FY25;
    • Earnings per share on a diluted basis of $0.43, up 16% from $0.37 in Q4FY24 and up 2% from $0.42 in Q3FY25; and
    • Adjusted EBITDA of $75.0 million, up 14% from $65.7 million in Q4FY24 and up 4% from $72.1 million in Q3FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in Q4FY24 and 43% in Q3FY25, respectively.

    The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):

      Q4
    FY25    		   Q3
    FY25    		   Q2
    FY25    		   Q1
    FY25    		   Q4
    FY24    		  
    Revenues 167.5   168.8   163.4   151.3   148.2  
    Services revenues 156.5   149.7   146.2   137.8   135.7  
    Gross margin 76 % 74 % 75 % 77 % 76 %
    Cash provided by operating activities* 60.7   60.1   34.7   63.7   50.8  
    Income from operations 47.1   45.8   45.9   42.4   37.0  
    Net income 37.4   36.6   34.7   34.7   31.8  
    Net income as a % of revenues 22 % 22 % 21 % 23 % 21 %
    Earnings per diluted share 0.43   0.42   0.40   0.40   0.37  
    Adjusted EBITDA 75.0   72.1   70.6   67.0   65.7  
    Adjusted EBITDA as a % of revenues 45 % 43 % 43 % 44 % 44 %
                         

    (*) Q2FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

    Cash Position
    At January 31, 2025, Descartes had $236.1 million in cash. Cash increased by $54.8 million in Q4FY25 and decreased by $84.9 million in FY25. The table set forth below provides a summary of cash flows for Q4FY25 and FY25 in millions of dollars:

      Q4FY25   FY25  
    Cash provided by operating activities 60.7   219.3  
    Additions to property and equipment (2.1 ) (6.8 )
    Acquisitions of subsidiaries, net of cash acquired (3.7 ) (290.2 )
    Payment of debt issuance costs   (0.1 )
    Issuances of common shares, net of issuance costs 2.5   12.4  
    Payment of withholding taxes on net share settlements –   (6.7 )
    Payment of contingent consideration –   (9.2 )
    Effect of foreign exchange rate on cash (2.6 ) (3.6 )
    Net change in cash 54.8   (84.9 )
    Cash, beginning of period 181.3   321.0  
    Cash, end of period 236.1   236.1  
             

    Conference Call
    Descartes’ executive management team will hold a conference call to discuss the company’s financial results at 5:30 PM ET on Wednesday, March 5. Designated numbers are +1 289 514 5100 or +1 800 717 1738 for North America Toll-Free, using Passcode 45440#.

    The company will simultaneously conduct an audio webcast on the Descartes website at https://www.descartes.com/who-we-are/investor-relations/financial-information. Phone conference dial-in or webcast login is required approximately 10 minutes beforehand.

    Replays of the conference call will be available until March 12, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 45440#. An archived replay of the webcast will be available at https://www.descartes.com/who-we-are/investor-relations/financial-information.

    About Descartes

    Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and X (Twitter).

    Descartes Investor Contact
    Laurie McCauley
    (519) 746-2969
    investor@descartes.com

    Cautionary Statement Regarding Forward-Looking Statements

    This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), and between Israel and Hamas (“Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ Global Logistics Network (“GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Russia-Ukraine Conflict and Israel-Hamas Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes’ business or industry, to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, Descartes’ ability to successfully identify and execute on acquisitions and to integrate acquired businesses and assets, and to predict expenses associated with and revenues from acquisitions; the impact of network failures, information security breaches or other cyber-security threats; disruptions in the movement of freight and a decline in shipment volumes including as a result of contagious illness outbreaks; a deterioration of general economic conditions or instability in the financial markets accompanied by a decrease in spending by our customers; the ability to attract and retain key personnel and the ability to manage the departure of key personnel and the transition of our executive management team; changes in trade or transportation regulations that currently require customers to use services such as those offered by Descartes; changes in customer behaviour and expectations; Descartes’ ability to successfully design and develop enhancements to our products and solutions; departures of key customers; the impact of foreign currency exchange rates; Descartes’ ability to retain or obtain sufficient capital in addition to its debt facility to execute on its business strategy, including its acquisition strategy; disruptions in the movement of freight; the potential for future goodwill or intangible asset impairment as a result of other-than-temporary decreases in Descartes’ market capitalization; and other factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including Descartes’ most recently filed Management’s Discussion and Analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

    Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues

    We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with GAAP. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

    The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

    Management considers these non-operating expenses to be outside the scope of Descartes’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with GAAP or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. In particular, we have completed seven acquisitions since the beginning of fiscal 2024 and may complete additional acquisitions in the future that will result in acquisition-related expenses and restructuring charges. As these acquisition-related expenses and restructuring charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

    The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our audited Consolidated Statements of Operations for FY25 and FY24, which we believe is the most directly comparable GAAP measure.

    (US dollars in millions) FY25   FY24  
    Net income, as reported on Consolidated Statements of Operations 143.3   115.9  
    Adjustments to reconcile to Adjusted EBITDA:    
    Interest expense 1.0   1.4  
    Investment income (11.5 ) (9.7 )
    Income tax expense 48.3   35.2  
    Depreciation expense 5.6   5.5  
    Amortization of intangible assets 69.4   60.5  
    Stock-based compensation and related taxes 21.1   17.1  
    Other charges 7.5   21.6  
    Adjusted EBITDA 284.7   247.5  
         
    Revenues 651.0   572.9  
    Net income as % of revenues 22 % 20 %
    Adjusted EBITDA as % of revenues 44 % 43 %
             

    The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q4FY25, Q3FY25, Q2FY25, Q1FY25, and Q4FY24, which we believe is the most directly comparable GAAP measure.

    (US dollars in millions) Q4FY25   Q3FY25   Q2FY25   Q1FY25   Q4FY24  
    Net income, as reported on Consolidated Statements of Operations 37.4   36.6   34.7   34.7   31.8  
    Adjustments to reconcile to Adjusted EBITDA:          
    Interest expense 0.2   0.2   0.2   0.3   0.3  
    Investment income (1.9 ) (2.9 ) (2.7 ) (4.1 ) (3.4 )
    Income tax expense 11.4   11.9   13.6   11.5   8.3  
    Depreciation expense 1.5   1.4   1.4   1.4   1.4  
    Amortization of intangible assets 19.4   17.5   17.4   15.0   15.1  
    Stock-based compensation and related taxes 5.4   5.6   5.8   4.3   4.7  
    Other charges 1.6   1.8   0.2   3.9   7.5  
    Adjusted EBITDA 75.0   72.1   70.6   67.0   65.7  
               
    Revenues 167.5   168.8   163.4   151.3   148.2  
    Net income as % of revenues 22 % 22 % 21 % 23 % 21 %
    Adjusted EBITDA as % of revenues 45 % 43 % 43 % 44 % 44 %
               

    The Descartes Systems Group Inc.
    Consolidated Balance Sheets
    (US dollars in thousands; US GAAP)

      January 31,   January 31,  
      2025   2024  
    ASSETS    
    CURRENT ASSETS    
    Cash 236,138   320,952  
    Accounts receivable (net)    
    Trade 53,953   51,569  
    Other 16,931   12,193  
    Prepaid expenses and other 45,544   33,468  
      352,566   418,182  
    OTHER LONG-TERM ASSETS 24,887   24,737  
    PROPERTY AND EQUIPMENT, NET 12,481   11,552  
    RIGHT-OF-USE ASSETS 7,623   6,257  
    DEFERRED INCOME TAXES 3,802   2,097  
    INTANGIBLE ASSETS, NET 321,270   251,047  
    GOODWILL 924,755   760,413  
      1,647,384   1,474,285  
    LIABILITIES AND SHAREHOLDERS’ EQUITY    
    CURRENT LIABILITIES    
    Accounts payable 20,650   17,484  
    Accrued liabilities 79,656   91,824  
    Lease obligations 3,178   3,075  
    Income taxes payable 9,313   6,734  
    Deferred revenue 104,230   84,513  
      217,027   203,630  
    LEASE OBLIGATIONS 4,718   3,903  
    DEFERRED REVENUE 978   1,464  
    INCOME TAXES PAYABLE 5,531   6,153  
    DEFERRED INCOME TAXES 34,127   21,101  
      262,381   236,251  
         
    SHAREHOLDERS’ EQUITY    
    Common shares – unlimited shares authorized; Shares issued and outstanding totaled 85,605,969 at January 31, 2025 (January 31, 2024 – 85,183,455) 568,339   551,164  
    Additional paid-in capital 503,133   494,701  
    Accumulated other comprehensive loss (50,497 ) (28,586 )
    Retained earnings 364,028   220,755  
      1,385,003   1,238,034  
      1,647,384   1,474,285  
             

    The Descartes Systems Group Inc.
    Consolidated Statements of Operations
    (US dollars in thousands, except per share and weighted average share amounts; US GAAP)

      January 31,   January 31,   January 31,  
    Year Ended 2025   2024   2023  
           
    REVENUES 651,000   572,931   486,014  
    COST OF REVENUES 158,574   138,295   113,326  
    GROSS MARGIN 492,426   434,636   372,688  
    EXPENSES      
    Sales and marketing 73,692   68,161   56,573  
    Research and development 95,497   84,103   70,353  
    General and administrative 65,248   57,373   49,710  
    Other charges 7,466   21,649   5,441  
    Amortization of intangible assets 69,399   60,501   60,177  
      311,302   291,787   242,254  
    INCOME FROM OPERATIONS 181,124   142,849   130,434  
    INTEREST EXPENSE (1,004 ) (1,363 ) (1,167 )
    INVESTMENT INCOME 11,513   9,666   4,461  
    INCOME BEFORE INCOME TAXES 191,633   151,152   133,728  
    INCOME TAX EXPENSE (RECOVERY)      
    Current 53,402   41,223   28,248  
    Deferred (5,042 ) (5,978 ) 3,244  
      48,360   35,245   31,492  
    NET INCOME 143,273   115,907   102,236  
    EARNINGS PER SHARE      
    Basic 1.68   1.36   1.21  
    Diluted 1.64   1.34   1.18  
    WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)      
    Basic 85,443   85,068   84,791  
    Diluted 87,323   86,818   86,451  
                 

    The Descartes Systems Group Inc.
    Consolidated Statements of Cash Flows
    (US dollars in thousands; US GAAP)

    Year Ended January 31,   January 31,   January 31,  
      2025   2024   2023  
    OPERATING ACTIVITIES            
    Net income 143,273   115,907   102,236  
    Adjustments to reconcile net income to cash provided by operating activities:      
    Depreciation 5,589   5,474   5,225  
    Amortization of intangible assets 69,399   60,501   60,177  
    Stock-based compensation expense 19,962   16,480   13,667  
    Other non-cash operating activities 23   114   53  
    Deferred tax expense (recovery) (5,042 ) (5,978 ) 3,244  
    Changes in operating assets and liabilities (13,932 ) 15,182   7,793  
    Cash provided by operating activities 219,272   207,680   192,395  
    INVESTING ACTIVITIES      
    Additions to property and equipment (6,743 ) (5,563 ) (6,071 )
    Acquisition of subsidiaries, net of cash acquired (290,204 ) (142,700 ) (115,561 )
    Cash used in investing activities (296,947 ) (148,263 ) (121,632 )
    FINANCING ACTIVITIES      
    Payment of debt issuance costs (53 ) (43 ) (1,118 )
    Issuance of common shares for cash, net of issuance costs 12,391   9,272   1,730  
    Payment of withholding taxes on net share settlements (6,745 ) (4,886 ) –  
    Payment of contingent consideration (9,223 ) (19,084 ) (5,215 )
    Cash used in financing activities (3,630 ) (14,741 ) (4,603 )
    Effect of foreign exchange rate changes on cash (3,509 ) (109 ) (3,212 )
    Increase (decrease) in cash (84,814 ) 44,567   62,948  
    Cash, beginning of year 320,952   276,385   213,437  
    Cash, end of year 236,138   320,952   276,385  
                 

    The MIL Network –

  • MIL-OSI: Amplify Energy Announces Fourth Quarter and Full-Year 2024 Results, Year-End 2024 Proved Reserves, Juniper Capital Acquisition Update and Standalone Full-Year 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the fourth quarter and full-year 2024, year-end 2024 proved reserves, Juniper Capital (“Juniper”) acquisition update and full-year 2025 standalone guidance for the Company.

    Key Highlights

    • 2025 strategic initiatives include:
      • Completing the previously announced transformational combination with certain Juniper portfolio companies which own substantial oil-weighted producing assets and significant leasehold interests in the DJ and Powder River Basins (the “Transaction”) and integrating such assets into our operations
      • Continuing the Beta development program with six completions planned for 2025 including the C-48 and the A-45 which were deferred from the 2024 program
      • Expanding Magnify Energy Services, a wholly owned subsidiary of Amplify (“Magnify”), to enhance Amplify’s competitive advantage in operating our mature assets located in East Texas and Oklahoma
      • Creating incremental value in East Texas by monetizing portions of our portfolio and/or participating in joint development opportunities focused within the Haynesville formation
    • During the fourth quarter of 2024, the Company:
      • Achieved average total production of 18.5 MBoepd
      • Generated net cash provided by operating activities of $12.5 million and a net loss of $7.4 million
      • Delivered Adjusted EBITDA of $21.8 million and Adjusted Net Income of $5.1 million
      • Generated $2.9 million of free cash flow
      • Completed the sale of undeveloped Haynesville acreage in East Texas for $1.4 million
    • For full-year 2024, the Company:
      • Achieved average total production of 19.5 MBoepd
      • Generated net cash provided by operating activities of $51.3 million and net income of $12.9 million
      • Delivered Adjusted EBITDA of $103.0 million and Adjusted Net Income of $35.8 million
      • Generated $18.0 million of free cash flow
      • Renegotiated prior surety bonds and reduced sinking fund payments by approximately $7.0 million per year
      • Initiated development drilling program at Beta, with the completion of two wells, which outperformed type curves
      • Generated $3.1 million of Adjusted EBITDA at Magnify
      • Renegotiated the iodine contract in Oklahoma, increasing annual Adjusted EBITDA by $2.4 million
    • Amplify’s year-end 2024 total proved reserves, utilizing Securities and Exchange Commission (“SEC”) pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas, totaled 93 MMBoe and had a PV-10 value of approximately $736 million
    • As of December 31, 2024, Amplify had $127.0 million outstanding under the revolving credit facility
      • Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.2x1
         
      (1) Net debt as of December 31, 2024, consisting of $127 MM outstanding under its revolving credit facility with ~$0.0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the fourth quarter of 2024.
         

    Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “In early 2024, we told stakeholders that 2024 had the potential to be a transformative year for the Company, and we believe that we delivered on that expectation throughout the year. The recently announced transaction with Juniper Capital expands our operations into the DJ and Powder River Basins, increases our scale, operating efficiency and margins, improves our inventory of attractive drilling locations, and provides us with a new core area for potential M&A activity. The transaction also resulted in a new long-term partnership with Juniper Capital, who have a long history of delivering substantial value to shareholders. At Beta, we safely and successfully initiated a drilling program, which has increased our confidence regarding the future inventory of the field and has enabled us to expand our development plans for this prolific asset in 2025 and beyond.”

    Mr. Willsher continued, “While we have focused our attention and resources on these two significant initiatives, our team has also delivered value to stockholders by pursuing opportunities to reduce operating expenses and maximize the value of our existing asset base. For example, Magnify Energy Services, our wholly owned subsidiary that provides oilfield services to Amplify-operated wells, expanded meaningfully in scope, realizing a significant increase in revenue and efficiency and reducing operating costs in East Texas and Oklahoma. We also renegotiated several existing contracts, like our iodine extraction contract, to receive improved economics. Although smaller in scope, these efforts have demonstrated management’s commitment to identifying areas to improve our operations and deliver value to stockholders. On the value maximizing front, we were able to monetize a portion of our acreage with Haynesville rights for several million dollars, while retaining an interest to realize upside value.”

    Mr. Willsher concluded, “We believe that our strategic and operational accomplishments in 2024 set the foundation for Amplify’s future and that in 2025 we will begin to capitalize on the growth potential of this significantly enhanced asset base.  By delivering on our 2025 strategic initiatives, we believe we can create immediate and long-term value for Amplify’s stockholders.”

    Juniper Capital Rocky Mountain Assets Update

    On January 15, 2025, Amplify announced that it has entered into a definitive merger agreement with privately held Juniper to combine with certain Juniper portfolio companies owning assets and leasehold interests in the DJ and Powder River Basins. Such portfolio companies are oil-weighted and include approximately 287,000 net acres. We expect to close the acquisition in the second quarter of 2025. Amplify has provided more information on the portfolio companies and their assets and the value potential of the Transaction in its latest investor presentation, available on its investor relations website.

    On March 4, 2025, a definitive proxy statement was filed providing additional details on the Transaction. A special meeting of stockholders, to be held virtually, has been scheduled for April 14, 2025, at 9:00 am Central Time, where stockholders of record as of March 3, 2025 can vote to approve the issuance of common stock, par value $0.01 per share (the “Common Stock”) (as described in more detail in the definitive proxy statement) in connection with the Transaction. In order to virtually attend, stockholders must register in advance at www.cesonlineservices.com/ampysm_vm prior to April 13, 2025 at 9:00 a.m. Central Time. More information can be found in the definitive proxy statement on the SEC’s website at www.sec.gov and the Company’s website, www.amplifyenergy.com, under the Investor Relations section. Upon approval from our stockholders of the issuance of Common Stock and the resulting closing of the Transaction, Amplify and Juniper are expected to own approximately 61% and 39%, respectively, of the combined company’s outstanding equity.

    In anticipation of closing, Amplify is currently working with Juniper and its portfolio companies on integrating the Juniper assets into the Amplify organization. Furthermore, the Company expects to refinance a substantial portion of its outstanding debt and approximately $133 million in principal amount of the portfolio companies’ outstanding debt prior to closing the Transaction. Amplify intends to update the market with developments of the Transaction as they progress.

    East Texas Haynesville Monetization Update

    Starting in 2024, several operators expressed increased interest in buying or partnering with Amplify on our East Texas Haynesville interests. In December 2024, Amplify monetized ninety percent (90%) of its interests in certain units with Haynesville rights in Panola and Shelby Counties, while retaining a ten percent (10%) working interest and the ability to participate in any well drilled within the boundary of such units. Upon closing, such transaction generated approximately $1.4 million in proceeds.

    In January 2025, Amplify completed a second transaction with a separate counterparty. Amplify sold ninety percent (90%) of its interest in certain units with Haynesville rights in Harrison County, Texas, in addition to 11 gross operated wells. This transaction also established an Area of Mutual Interest (“AMI”) with the counterparty covering 10,000 gross acres. Amplify retained a ten percent (10%) working interest in the units it divested and purchased a ten percent (10%) working interest in the counterparty’s acreage. Amplify generated net proceeds of $6.2 million from these transactions and estimates the AMI has more than 30 potential gross drilling locations.

    2024 Year-End Proved Reserve Update

    The Company’s estimated proved reserves at SEC pricing for year-end 2024 totaled 93.0 MMBoe, which consisted of 82.2 MMBoe of proved developed reserves and 10.8 MMBoe of proved undeveloped reserves. Proved developed reserves were lower year-over-year, primarily due to lower SEC pricing for oil and natural gas, which fell from $78.22 to $75.48 for oil and from $2.64 to $2.13 for natural gas, and the impact of 2024 production roll-off. Total proved reserves were comprised of 44% oil, 19% NGLs, and 37% natural gas.

    At year-end 2024, Amplify’s total proved reserves and proved developed reserves had PV-10 values of approximately $736 million and $507 million, respectively, using SEC pricing. Proved developed reserve value at Bairoil was lower than 2023 due to a combination of SEC pricing, production performance and higher operating cost assumptions due to significant increases in regulated electricity rates. Proved undeveloped reserves have increased materially as a result of the successful 2024 Beta development program, with the Company adding 23 additional locations and approximately $200 million in PV-10 value. The initial production rates for the two Beta wells brought on-line in 2024 exceeded the type-curves included in our year-end reserve report, and Amplify will consider increasing the type curve assumptions for Beta development wells after evaluating results from the 2025 development program. Detail on the Company’s reserves by asset is provided in the table below. Additionally, Amplify has provided more information on its Beta development program and the substantial value potential of the field in its latest investor presentation, available on its investor relations website.

      Estimated Net Reserves1
    Region MMBoe % Oil and NGL Proved Developed PV-10 Proved Undeveloped PV-10 Total Proved PV-10
          (in millions)
               
    Beta 19.1 100% $144 $214 $358
    Oklahoma 27.0 46% 138 – 138
    Bairoil 16.4 100% 118 – 118
    East Texas/ North Louisiana 28.0 30% 75 4 79
    Eagle Ford (Non-op) 2.5 90% 32 11 43
               
    Total 93.0 63% $507 $229 $736
    (1) Amplify’s year-end 2024 total proved reserves, utilizing SEC pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas.
       

    Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

    Key Financial Results

    During the fourth quarter of 2024, the Company reported a net loss of approximately $7.4 million. The net loss was primarily attributable to a non-cash unrealized loss on commodity derivatives during the period. Excluding the impact of the non-cash unrealized loss on commodity derivatives in addition to other one-time impacts, Amplify generated Adjusted Net Income of $5.1 million in the fourth quarter of 2024.

    Fourth quarter Adjusted EBITDA was $21.8 million, a decrease of approximately $3.7 million from $25.5 million in the prior quarter. The decrease was primarily due to lower realized oil prices (net of hedges) in the fourth quarter compared to the prior quarter.

    Free cash flow was $2.9 million for the fourth quarter, a decrease of $0.7 million compared to the prior quarter. Amplify has now generated positive free cash flow in 18 of the last 19 fiscal quarters.

      Fourth Quarter Third Quarter
    $ in millions 2024   2024  
    Net income (loss)   ($7.4 )   $22.7  
    Net cash provided by operating activities   $12.5     $15.7  
    Average daily production (MBoe/d)   18.5     19.0  
    Total revenues excluding hedges   $69.0     $69.9  
    Adjusted EBITDA (a non-GAAP financial measure)   $21.8     $25.5  
    Adjusted net income (loss), (a non-GAAP financial measure)   $5.1     $9.8  
    Total capital   $15.3     $18.2  
    Free Cash Flow (a non-GAAP financial measure)   $2.9     $3.6  
         

    Revolving Credit Facility

    As of December 31, 2024, Amplify had $127.0 million outstanding under its revolving credit facility, and net debt to LTM Adjusted EBITDA was 1.2x (net debt as of December 31, 2024 and 4Q24 LTM Adjusted EBITDA). Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity, primarily at Beta.

    Corporate Production and Pricing

    During the fourth quarter of 2024, average daily production was approximately 18.5 Mboepd, a decrease of 0.5 Mboepd from the prior quarter. The decrease in production was driven by gas volumes, which were impacted by gas plant realizations in East Texas. Our oil volumes, although slightly higher compared to the prior quarter, were impacted by platform shutdowns following the completion of the emission reduction and electrification facility projects and several unexpected well failures and subsequent interventions at Beta. With the successful completion of the electrification and emissions reduction project in the fourth quarter 2024 and the intervention projects completed by end of January 2025, we are projecting Beta production to be significantly higher than the fourth quarter, before the impact of the 2025 drilling program. As of March 2, 2025, current 7-day average production rates at Beta were 4,834 gross Bopd (3,635 net Bopd), representing an approximate 9% increase from fourth quarter 2024 volumes, with minimal contribution from the recently completed C48 well, which we continue to draw down since completing in mid-February.

    The Company’s product mix for the quarter was 45% crude oil, 17% NGLs, and 38% natural gas.

      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           

    Total oil, natural gas and NGL revenues for the fourth quarter of 2024 were approximately $67.2 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $4.1 million during the fourth quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $3.3 million for the fourth quarter compared to the prior quarter.

    The following table sets forth information regarding average realized sales prices for the periods indicated:

      Crude Oil ($/Bbl) NGLs ($/Bbl) Natural Gas ($/Mcf)
                           
      Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024
                           
    Average sales price exclusive of realized derivatives and certain deductions from revenue $ 66.82     $ 71.74     $ 23.46     $ 21.63     $ 2.52     $ 1.84  
    Realized derivatives   1.43       (0.24 )     –       –       0.76       1.38  
                           
    Average sales price with realized derivatives exclusive of certain deductions from revenue $ 68.25     $ 71.50     $ 23.46     $ 21.63     $ 3.28     $ 3.22  
    Certain deductions from revenue   –       –       (1.37 )     (1.33 )     (0.01 )     0.00  
                           
    Average sales price inclusive of realized derivatives and certain deductions from revenue $ 68.25     $ 71.50     $ 22.09     $ 20.30     $ 3.27     $ 3.22  
                           

    Costs and Expenses

    Lease operating expenses in the fourth quarter of 2024 were approximately $35.1 million, or $20.57 per Boe, a $1.8 million increase compared to the prior quarter. Due to increased well failures in the fourth quarter, Beta lease operating costs were higher compared to the prior quarter. Lease operating expenses do not reflect $0.9 million of income generated by Magnify in the fourth quarter.

    Severance and ad valorem taxes in the fourth quarter were approximately $5.4 million, a decrease of $0.6 million compared to $6.0 million in the prior quarter, and in line with expectations. Severance and ad valorem taxes as a percentage of revenue were approximately 8.0% in the fourth quarter.

    Amplify incurred $4.5 million, or $2.62 per Boe, of gathering, processing and transportation expenses in the fourth quarter, compared to $4.3 million, or $2.45 per Boe, in the prior quarter.

    Cash G&A expenses in the fourth quarter were $6.3 million, an increase of $0.1 million compared to the prior quarter and in-line with expectations.

    Depreciation, depletion and amortization expense in the fourth quarter totaled $8.4 million, or $4.93 per Boe, compared to $8.1 million, or $4.62 per Boe, in the prior quarter.

    Net interest expense was $3.7 million in the fourth quarter, a decrease of $0.1 million compared to $3.8 million in the prior quarter.

    Amplify recorded a current income tax benefit of $2.1 million in the fourth quarter.

    Fourth Quarter and Full-Year Capital Investments

    Cash capital investment during the fourth quarter of 2024 was approximately $15.3 million. During the fourth quarter, the Company’s capital allocation was approximately 65% for Beta development drilling and facility projects, with the remainder distributed across the Company’s other assets.

    The following table details Amplify’s capital invested during the fourth quarter of 2024:

      Fourth Quarter   Full-Year
      2024 Capital   2024 Capital
      ($ MM)   ($ MM)
    Bairoil $ 0.2     $ 2.9  
    Beta $ 10.0     $ 53.7  
    Oklahoma $ 0.1     $ 3.2  
    East Texas / North Louisiana $ 2.8     $ 5.6  
    Eagle Ford (Non-op) $ 2.1     $ 4.1  
    Magnify Energy Services $ 0.1     $ 1.1  
    Total Capital Invested $ 15.3     $ 70.6  
           

    2025 Operations & Development Plan

    The following table details Amplify’s 2025 projected capital investments of $70 – $80 million:

    Capital Investment by Type (% of Total):  
    Beta Development 41 %
    Beta Facility 16 %
    Workovers & Other Facilities 25 %
    Non-op Development 18 %
    Total Capital Investments: 100 %
         

    Amplify’s 2025 operations and development plan is designed to continue unlocking the underlying value of the Company’s assets. To achieve this goal, we intend to 1) continue our development program at Beta, 2) execute on low-cost, high-return workover projects, and 3) reduce operating costs by increasing activity at Magnify.

    At Beta, Amplify intends to complete six wells in 2025. The C48 well, the first of the six wells to be completed in 2025, was drilled in the fourth quarter of 2024 and completed in mid-February. Similar to the A50 and C59 wells drilled in 2024, the completion of the C48 well was initially designed to target the D-sand. However, drilling conditions encountered in the D-sand and the quality of the C-Sand observed while drilling through the formation, led the team to alter the completion design and target the C-sand instead. The C48 will be the first test of the horizontal potential of the C-sand and we will share the results of the C48 well after obtaining sufficient initial production data.

    In 2024 Amplify brought online two new wells at Beta, the A50 well (brought online in June) and the C59 well (brought online in October), both of which exceeded internal projections and increased Beta’s overall production approximately 15% in January 2025 compared to January of 2024. Similarly, the six Beta completions planned in 2025 are expected to significantly increase Amplify’s oil production year-over-year. Additional information regarding the Beta development plan can be found in the investor presentation on the Company’s investor relations website.

    In addition to drilling and completing the six wells, Amplify intends to make continued investments in Beta’s facilities. In 2025, the Company expects to invest approximately $8 million to upgrade a 2-mile pipeline that ships all produced fluid from platform Eureka to platform Elly.

    At Bairoil, we continue to focus on enhancing water-alternating-gas injection performance through targeted well recompletions and conversions, which helps offset the asset’s nominal production declines. Our plan also includes an investment at our CO2 gas plant intended to reduce overall power usage and lease operating expenses in the second half of 2025.

    Amplify’s operating strategy in Oklahoma remains focused on prioritizing a stable free cash flow profile by managing production through an active workover program, artificial lift enhancements, extending well run-times and continuing to reduce operating costs.

    In East Texas, we are participating in the completion of four non-operated development projects, which we expect to be online by mid-year. The Company also continues to focus on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs.

    In late 2023, we formed Magnify to in-source specific oilfield services to improve service reliability and to reduce overall operating expenses for the Company. Since its inception, Magnify has generated $3.7 million of Adjusted EBITDA with a capital investment of only $1.7 million. In 2025, we expect to invest an additional $1.4 million of capital in Magnify and project 2025 Adjusted EBITDA of approximately $5 million (with an annualized run rate of $6 million by year-end). We are evaluating additional accretive services for Magnify to service Amplify operated assets.

    In the Eagle Ford, we are participating in 14 gross (0.7 net) new development wells and two gross (0.4 net) recompletion projects. These non-operated wells, with highly accretive returns, are currently scheduled to be completed in the first half of 2025.

    Full-Year 2025 Guidance

    The following standalone guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s 2025 guidance is based on its current expectations regarding capital investment levels and flat commodity prices for crude oil of $71/Bbl (WTI) and natural gas of $3.75/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest approximately 90% of its capital in the first three quarters of the year primarily in connection with the Beta development program. Upon closing of the Transaction with Juniper, the Company will provide updated guidance to include the acquired assets.

    A summary of the standalone guidance is presented below:

      FY 2025E
           
      Low   High
           
    Net Average Daily Production      
    Oil (MBbls/d) 8.5 – 9.4
    NGL (MBbls/d) 3.0 – 3.3
    Natural Gas (MMcf/d) 45.0 – 51.0
    Total (MBoe/d) 19.0 – 21.0
           
    Commodity Price Differential / Realizations (Unhedged)      
    Oil Differential ($ / Bbl) ($3.25) – ($4.25)
    NGL Realized Price (% of WTI NYMEX) 27% – 31%
    Natural Gas Realized Price (% of Henry Hub) 85% – 92%
           
    Other Revenue      
    Magnify Energy Services ($ MM) $4 – $6
    Other ($ MM) $2 – $3
    Total ($ MM) $6 – $9
           
    Gathering, Processing and Transportation Costs      
    Oil ($ / Bbl) $0.65 – $0.85
    NGL ($ / Bbl) $2.75 – $4.00
    Natural Gas ($ / Mcf) $0.55 – $0.75
    Total ($ / Boe) $2.25 – $2.85
           
    Average Costs      
    Lease Operating ($ / Boe) $18.50 – $20.50
    Taxes (% of Revenue) (1) 6.0% – 7.0%
    Cash General and Administrative ($ / Boe) (2)(3) $3.40 – $3.90
           
    Adjusted EBITDA ($ MM) (2)(3) $100 – $120
    Cash Interest Expense ($ MM) $12 – $18
    Capital Expenditures ($ MM) $70 – $80
    Free Cash Flow ($ MM) (2)(3) $10 – $30
           
    (1) Includes production, ad valorem and franchise taxes
    (2) Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of Cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $0 – $2 million for the year)
    (3) Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
     

    Hedging

    Recently, the Company took advantage of volatility in the futures market to add to its hedge position, further protecting future cash flows. Amplify executed crude oil swaps covering the second half of 2025 through year-end 2026 at a weighted average price of $68.10. The Company also added natural gas collars for a portion of 2027 with a weighted average floor of $3.63 per MMBtu and a weighted average ceiling of $3.98 per MMBtu.

    The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for January 2025 through December 2027, as of March 4, 2025:

        2025       2026       2027  
               
    Natural Gas Swaps:          
    Average Monthly Volume (MMBtu)   585,000       500,000       87,500  
    Weighted Average Fixed Price ($) $ 3.75     $ 3.79     $ 3.76  
               
    Natural Gas Collars:          
    Two-way collars          
    Average Monthly Volume (MMBtu)   500,000       500,000       87,500  
    Weighted Average Ceiling Price ($) $ 3.90     $ 4.06     $ 4.20  
    Weighted Average Floor Price ($) $ 3.50     $ 3.55     $ 3.50  
               
    Oil Swaps:          
    Average Monthly Volume (Bbls)   128,583       72,750      
    Weighted Average Fixed Price ($) $ 70.85     $ 69.19      
               
    Oil Collars:          
    Two-way collars          
    Average Monthly Volume (Bbls)   59,500          
    Weighted Average Ceiling Price ($) $ 80.20          
    Weighted Average Floor Price ($) $ 70.00          
               

    Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.

    Annual Report on Form 10-K

    Amplify’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2024, which Amplify expects to file with the SEC on March 5, 2025.

    About Amplify Energy

    Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

    Conference Call

    Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (888) 999-5318 at least 15 minutes before the call begins and providing the Conference ID: AEC4Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 71724906. A transcript and a recorded replay of the call will also be available on our website after the call.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the Company’s ability to successfully complete the proposed business combination between the Company and certain of Juniper’s portfolio companies, or the “Mergers”; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, and ongoing conflicts in the Middle East, and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing, and the current administration’s potential reversal thereof. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

    No Offer or Solicitation

    A portion of this press release relates to a proposed business combination transaction between the Company and certain Juniper portfolio companies. This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the proposed business combination transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Important Additional Information Regarding the Mergers Will Be Filed With the SEC

    In connection with the proposed transaction, the Company has filed a definitive proxy statement. The definitive proxy statement will be sent to the stockholders of the Company. The Company may also file other documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS OF AMPLIFY ARE ADVISED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS, THE PARTIES TO THE MERGERS AND THE RISKS ASSOCIATED WITH THE MERGERS. Investors and security holders may obtain a free copy of the definitive proxy statement and other relevant documents filed by Amplify with the SEC from the SEC’s website at www.sec.gov. Security holders and other interested parties will also be able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents (when available) by (1) directing your written request to: 500 Dallas Street, Suite 1700, Houston, Texas or (2) contacting our Investor Relations department by telephone at (832) 219-9044 or (832) 219-9051. Copies of the documents filed by the Company with the SEC will be available free of charge on the Company’s website at http://www.amplifyenergy.com.

    Participants in the Solicitation

    Amplify and certain of its respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of Amplify in connection with the proposed transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the definitive proxy statement filed with the SEC. Additional information regarding the Company’s directors and executive officers is also included in Amplify’s Notice of Annual Meeting of Stockholders and 2024 Proxy Statement, which was filed with the SEC on April 5, 2024. These documents are available free of charge as described above.

    Use of Non-GAAP Financial Measures

    This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted net income, free cash flow, net debt, PV-10 and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

    Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.

    Adjusted Net Income. Amplify defines Adjusted Net Income as net income (loss) adjusted for loss (gain) on commodity derivative instruments, acquisition & divestiture related expenses, unusual and infrequent items, and the income tax expense or benefit of these adjustments using our federal statutory tax rate. Adjusted Net Income (Loss) excludes the impact of unusual and infrequent items affecting earnings that vary widely and unpredictably, including derivative gains and losses. This measure is not meant to disassociate these items from management’s performance but rather is intended to provide helpful information to investors interested in comparing our performance between periods. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP.

    Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.

    Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.

    PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP.

    Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.

    Contacts

    Jim Frew — Senior Vice President and Chief Financial Officer
    (832) 219-9044
    jim.frew@amplifyenergy.com

    Michael Jordan — Director, Finance and Treasurer
    (832) 219-9051
    michael.jordan@amplifyenergy.com


    Selected Operating and Financial Data (Tables)

    Amplify Energy Corp.
    Selected Financial Data – Unaudited
    Statements of Operations Data
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Revenues:      
    Oil and natural gas sales $ 67,189     $ 68,135  
    Other revenues   1,832       1,723  
    Total revenues   69,021       69,858  
           
    Costs and Expenses:      
    Lease operating expense   35,100       33,255  
    Pipeline incident loss   2,405       247  
    Gathering, processing and transportation   4,468       4,290  
    Exploration   10       –  
    Taxes other than income   5,356       5,997  
    Depreciation, depletion and amortization   8,418       8,102  
    General and administrative expense   9,486       8,251  
    Accretion of asset retirement obligations   2,156       2,125  
    Realized (gain) loss on commodity derivatives   (4,052 )     (6,375 )
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    (Gain) loss on sale of properties   (1,367 )     –  
    Other, net   334       38  
    Total costs and expenses   75,671       37,258  
           
    Operating Income (loss)   (6,650 )     32,600  
           
    Other Income (Expense):      
    Interest expense, net   (3,684 )     (3,756 )
    Other income (expense)   (113 )     (130 )
    Total other income (expense)   (3,797 )     (3,886 )
           
    Income (loss) before reorganization items, net and income taxes   (10,447 )     28,714  
           
    Income tax benefit (expense) – current   2,132       (412 )
    Income tax benefit (expense) – deferred   886       (5,650 )
           
    Net income (loss) $ (7,429 )   $ 22,652  
           
    Earnings per share:      
    Basic and diluted earnings (loss) per share $ (0.19 )   $ 0.54  
           
    Selected Financial Data – Unaudited      
    Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per unit data) December 31, 2024   September 30, 2024
           
    Oil and natural gas revenue:      
    Oil Sales $ 50,817     $ 54,353  
    NGL Sales   6,602       6,096  
    Natural Gas Sales   9,770       7,686  
    Total oil and natural gas sales – Unhedged $ 67,189     $ 68,135  
           
    Production volumes:      
    Oil Sales – MBbls   760       758  
    NGL Sales – MBbls   299       301  
    Natural Gas Sales – MMcf   3,883       4,165  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
           
    Average sales price (excluding commodity derivatives):      
    Oil – per Bbl $ 66.82     $ 71.74  
    NGL – per Bbl $ 22.09     $ 20.29  
    Natural gas – per Mcf $ 2.52     $ 1.85  
    Total – per Boe $ 39.37     $ 38.88  
           
    Average unit costs per Boe:      
    Lease operating expense $ 20.57     $ 18.98  
    Gathering, processing and transportation $ 2.62     $ 2.45  
    Taxes other than income $ 3.14     $ 3.42  
    General and administrative expense $ 5.56     $ 4.71  
    Realized gain/(loss) on commodity derivatives $ 2.38     $ 3.64  
    Depletion, depreciation, and amortization $ 4.93     $ 4.62  
           
    Selected Financial Data – Unaudited      
    Asset Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           
    Lease operating expense – $M:      
    Bairoil $ 11,800     $ 13,164  
    Beta   12,113       9,520  
    Oklahoma   3,948       3,644  
    East Texas / North Louisiana   5,887       5,592  
    Eagle Ford (Non-op)   1,351       1,335  
    Total Lease operating expense: $ 35,099     $ 33,255  
           
    Capital expenditures – $M:      
    Bairoil $ 190     $ 1,224  
    Beta   10,001       12,047  
    Oklahoma   168       1,449  
    East Texas / North Louisiana   2,758       2,303  
    Eagle Ford (Non-op)   2,125       1,157  
    Magnify Energy Services   82       44  
    Total Capital expenditures: $ 15,324     $ 18,224  
           
    Selected Financial Data – Unaudited              
    Balance Sheet Data              
                   
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    Assets              
    Cash and Cash Equivalents $ –     $ –  
    Accounts Receivable   39,713       32,295  
    Other Current Assets   32,064       37,862  
    Total Current Assets $ 71,777     $ 70,157  
                   
    Net Oil and Gas Properties $ 386,218     $ 378,871  
    Other Long-Term Assets   289,081       290,188  
    Total Assets $ 747,076     $ 739,216  
                   
    Liabilities              
    Accounts Payable $ 13,231     $ 18,107  
    Accrued Liabilities   43,413       36,699  
    Other Current Liabilities   11,494       11,362  
    Total Current Liabilities $ 68,138     $ 66,168  
                   
    Long-Term Debt $ 127,000     $ 120,000  
    Asset Retirement Obligation   129,700       127,556  
    Other Long-Term Liabilities   13,326       10,822  
    Total Liabilities $ 338,164     $ 324,546  
                   
    Shareholders’ Equity              
    Common Stock & APIC $ 440,380     $ 438,709  
    Accumulated Earnings (Deficit)   (31,468 )     (24,039 )
    Total Shareholders’ Equity $ 408,912     $ 414,670  
                   
    Selected Financial Data – Unaudited      
    Statements of Cash Flows Data      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
           
    Net cash provided by (used in) operating activities $ 12,455     $ 15,737  
    Net cash provided by (used in) investing activities   (19,379 )     (18,078 )
    Net cash provided by (used in) financing activities   6,924       1,839  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 12,455     $ 15,737  
    Changes in working capital   4,770       5,937  
    Interest expense, net   3,684       3,756  
    Cash settlements received on terminated commodity derivatives   –       (793 )
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Amortization and write-off of deferred financing fees   (315 )     (310 )
    Exploration costs   10       –  
    Acquisition and divestiture related costs   1,424       186  
    Plugging and abandonment cost   754       372  
    Current income tax expense (benefit)   (2,132 )     412  
    Pipeline incident loss   2,405       247  
    (Gain) loss on sale of properties   (1,367 )     –  
    Adjusted EBITDA: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted EBITDA1to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 51,293     $ 141,590  
    Changes in working capital   32,272       (8,517 )
    Interest expense, net   14,599       17,719  
    Cash settlements received on terminated commodity derivatives   (793 )     (658 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Amortization and write-off of deferred financing fees   (1,233 )     (1,980 )
    Exploration costs   61       57  
    Acquisition and divestiture related costs   1,633       219  
    Plugging and abandonment cost   1,640       2,239  
    Current income tax expense (benefit)   232       4,817  
    Pipeline incident loss   3,859       19,981  
    (Gain) loss on sale of properties   (1,367 )     –  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA1 and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Interest expense, net   3,684       3,756  
    Income tax expense (benefit) – current   (2,132 )     412  
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Depreciation, depletion and amortization   8,418       8,102  
    Accretion of asset retirement obligations   2,156       2,125  
    (Gains) losses on commodity derivatives   9,305       (25,047 )
    Cash settlements received (paid) on expired commodity derivative instruments   4,052       5,582  
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Acquisition and divestiture related costs   1,424       186  
    Share-based compensation expense   1,686       1,815  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   10       –  
    Loss on settlement of AROs   334       38  
    Bad debt expense   28       26  
    Pipeline incident loss   2,405       247  
    Adjusted EBITDA1: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
           
    Reconciliation of Adjusted EBITDA1to Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Interest expense, net   14,599       17,719  
    Income tax expense (benefit) – current   232       4,817  
    Income tax expense (benefit) – deferred   2,196       (253,796 )
    Depreciation, depletion and amortization   32,586       28,004  
    Accretion of asset retirement obligations   8,438       7,951  
    (Gains) losses on commodity derivatives   2,047       (40,343 )
    Cash settlements received (paid) on expired commodity derivative instruments   17,617       (8,273 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Acquisition and divestiture related costs   1,633       219  
    Share-based compensation expense   6,799       5,280  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   61       57  
    Loss on settlement of AROs   470       1,003  
    Bad debt expense   80       98  
    Pipeline incident loss   3,859       19,981  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    Acquisition and divestiture related costs   1,424       186  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement   –       –  
    Tax effect of adjustments   (12 )     (39 )
    Adjusted net income (loss) $ 5,087     $ 9,777  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Unrealized (gain) loss on commodity derivatives   20,457       (47,958 )
    Acquisition and divestiture related costs   1,633       219  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred1   2,196       (253,796 )
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement2   –       (84,875 )
    Tax effect of adjustments3   (56 )     17,778  
    Adjusted net income (loss) $ 35,809     $ 24,118  
      (1) In 2023, we achieved three years of cumulative book income which resulted in the release of our valuation allowance of $284.9 million.
      (2) In 2023, non-recurring costs included a litigation settlement with the shipping companies and the containerships whose anchors struck the Company’s pipeline.
      (3) The federal statutory rates were utilized for all periods presented.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Three Months      Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    General and administrative expense $ 9,486     $ 8,251  
    Less: Share-based compensation expense   1,686       1,815  
    Less: Acquisition and divestiture costs   1,424       186  
    Less: Bad debt expense   28       26  
    Less: Severance payments   —       —  
    Total Cash General and Administrative Expense $ 6,348     $ 6,224  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Twelve Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2023
                   
    General and administrative expense $ 35,895     $ 32,984  
    Less: Share-based compensation expense   6,799       5,280  
    Less: Acquisition and divestiture costs   1,633       219  
    Less: Bad debt expense   80       98  
    Less: Severance payments   344       965  
    Total Cash General and Administrative Expense $ 27,039     $ 26,422  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Revenue Payables in Suspense
           
      Three Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2024
           
           
    Oil and natural gas sales $ –     $ 4,023  
    Other revenues   –       4,829  
    Severance tax and other deducts   –       (433 )
    Total net revenue $ –     $ 8,419  
           
    Production volumes:      
    Oil (MBbls)   –       33  
    NGLs (MBbls)   –       31  
    Natural gas (MMcf)   –       441  
    Total (Mboe)   –       138  
    Total (Mboe/d)   –       0.38  
           
        As of       As of  
      December 31,       December 31,  
      2024       2023  
    Standardized measure of future net cash flows, discounted at 10% ($ M)   $608,239       $626,131  
    Add: PV of future income tax, discounted at 10% ($ M)   $127,526       $130,882  
    PV-10 ($ M)   $735,765       $757,013  
                   

    The MIL Network –

  • MIL-OSI: Silvaco Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Achieved record gross bookings of $65.8 million and revenue of $59.7 million in full-year 2024

    Signed 46 new customers in 2024 and expanded relationship with existing customers across key markets including power, automotive, memory, foundry, and display

    Expanded Product Portfolio with the Acquisition of Cadence’s Process Proximity Compensation Product Line

    SANTA CLARA, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its fourth quarter and full year 2024 results.

    “We are proud to close out the year with strong momentum and growing customer traction, including 46 new customer wins in 2024 and multiple bookings on our AI based, flagship FTCO platform,” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “Our first acquisition as a public company marks a significant milestone in executing our M&A strategy for talent, technology and expanding through inorganic growth. With a continued focus on innovation and execution, we are well-positioned to build on this success and drive further growth in 2025 for our EDA and TCAD product lines.”

    Fourth Quarter 2024 and Recent Business Highlights

    • Acquired 13 new customers across key markets including Photonics, Power, Automotive, Memory, and Foundry, which represented approximately 9% of gross bookings for the quarter.
    • Announced a partnership with Micon Global to expand Silvaco’s reach across the EMEA market, leveraging Micon’s expertise to deliver cutting-edge TCAD, EDA, and SIP solutions to new customers.
    • Joined the SMART USA Institute under the CHIPS Manufacturing USA program to advance digital twin technologies in semiconductor manufacturing, reinforcing Silvaco’s leadership in innovation. We received our first booking from this program.
    • Received a $5.0 million follow-on order for FTCO™ digital-twin modeling product from a strategic memory customer. This order extends the footprint of our FTCO™ product line and further validates our strategic focus on this unique technology.
    • Achieved ISO 9001 certification, underscoring Silvaco’s commitment to quality and continuous improvement across its TCAD, EDA, and SIP product portfolio.
    • On March 4, 2025, Silvaco closed the acquisition of the Process Proximity Compensation (PPC) product line from Cadence Design Systems, Inc. The addition, an optical proximity correction suite of tools, is highly complementary to Silvaco’s EDA and TCAD tool suites.

    Full Year 2024 Business Highlights

    • Acquired 46 new customers across key markets including Power, Automotive, Government/Mil-Aero, Photonics, IOT, 5G/6G, Memory, and Foundry, which represented approximately 10% of gross bookings for the year.
    • Expanded Victory TCAD and Digital Twin Modeling Platform to Planar CMOS, FinFET and Advanced CMOS Technologies which is a necessary step to enable FTCO for Advanced Process.
    • Silvaco Announced that the Ninth Circuit Court of Appeals affirmed the dismissal of all claims against Silvaco brought by Aldini AG.
    • Silvaco was added to the Russell 2000®, Russell 3000®, and Russell Microcap® indexes in September 2024.
    • Completed initial public offering in May 2024, raising $106 million net of underwriters’ fees.

    Fourth Quarter 2024 Financial Results

    GAAP Financial Results

    • Revenue of $17.9 million, up 43% year-over-year and up 63% quarter-over-quarter.
      • TCAD revenue of $12.7 million, up 65% year-over-year.
      • EDA revenue of $4.2 million, up 57% year-over-year.
      • SIP revenue of $0.9 million, down 57% year-over-year.
    • GAAP gross profit and GAAP gross margin were $15.4 million and 86%, respectively, which includes the impact of $194,000 stock-based compensation expense, $249,000 amortization of acquired intangible assets, and $80,000 payroll taxes from the RSU lockup release, up from $9.8 million and 79% in Q4 2023.
    • GAAP net income of $4.2 million, compared to a GAAP net loss of $2.2 million in Q4 2023.
    • GAAP basic and diluted net income per share of $0.14, compared to GAAP basic and diluted net loss per share of $(0.11) in Q4 2023.
    • As of December 31, 2024, cash and cash equivalents and marketable securities totaled $87.5 million.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $20.3 million, up 30% year-over-year.
    • As of December 31, 2024, the remaining performance obligation balance of $34.3 million, 46% of which is expected to be recognized as revenue in the next 12 months.
    • Non-GAAP gross profit and non-GAAP gross margin were $16.0 million and 89%, respectively, up from $9.8 million and 79% year-over-year.
    • Non-GAAP net income of $4.3 million, compared to Non-GAAP net loss of $(1.6) million in Q4 2023.
    • Non-GAAP diluted net income per share of $0.15, compared to Non-GAAP diluted net loss per share of $(0.08) in Q4 2023.

    Full Year 2024 Financial Results

    GAAP Financial Results

    • Revenue of $59.7 million, up 10% year-over-year.
      • TCAD revenue of $40.2 million, up 25% year-over-year.
      • EDA revenue of $14.6 million, up 4% year-over-year.
      • SIP revenue of $4.9 million, down 40% year-over-year.
    • GAAP gross profit and GAAP gross margin were $47.6 million and 80%, respectively, which includes the impact of $3.0 million stock-based compensation expense, $747,000 amortization of acquired intangible assets, and $80,000 payroll taxes from the RSU lockup release, up from $44.9 million and down from 83% in 2023.
    • GAAP net loss of $(39.4) million, compared to $(0.3) million in 2023.
    • GAAP basic and diluted net loss per share of $(1.53), compared to $(0.02) in 2023.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $65.8 million, up 13% year-over-year.
    • Non-GAAP gross profit and non-GAAP gross margin were $51.4 million and 86%, respectively, up from $44.9 million and 83% year over year.
    • Non-GAAP net income of $6.7 million, compared to $3.4 million in 2023.
    • Non-GAAP diluted net income per share of $0.25, compared to $0.17 in 2023.

    For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

    Supplementary materials to this press release, including our fourth quarter 2024 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

    First Quarter and Full Year 2025 Financial Outlook

    As of March 5, 2025, Silvaco is providing guidance for its first quarter of 2025 and its full-year 2025, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP diluted net income (loss) per share. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin, GAAP operating income (loss) is the most comparable GAAP measure to non-GAAP operating income (loss). GAAP diluted net income (loss) per share is the most comparable GAAP measure to non-GAAP diluted net income (loss) per share. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, amortization of acquired intangible assets, and payroll tax from the IPO lock-up release. Non-GAAP operating income (loss) differs from GAAP operating income (loss) in that it excludes items such as acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, IPO preparation costs, and executive severance costs. Non-GAAP diluted net income (loss) per share differs from GAAP diluted net income (loss) per share in that it excludes certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, executive severance costs, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on debt extinguishment, and the income tax effect on non-GAAP items. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin, GAAP operating income or GAAP diluted net income (loss) per share or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income or non-GAAP diluted net income (loss) per share guidance to GAAP gross margin or GAAP operating income or GAAP diluted net income (loss) per share, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

    Based on current business trends and conditions, the Company expects for first quarter 2025 the following:

    • Gross bookings in the range of $16.0 million to $19.0 million, which would compare to $16.1 million in the first quarter of 2024.
    • Revenue in the range of $14.5 million to $17.0 million, which would compare to $15.9 million in the first quarter of 2024.
    • Non-GAAP gross margin in the range of 84% to 87%, which would compare to 88% in the first quarter of 2024.
    • Non-GAAP operating income in the range of ($1.0) million loss to $1.0 million income, compared to $3.3 million in the first quarter of 2024.
    • Non-GAAP diluted net income per share in the range of ($0.03) loss to $0.03, compared to $0.12 in the first quarter of 2024.

    For full year 2025, the Company expects:

    • Gross bookings in the range of $72.0 million to $79.0 million, which would represent a 9% to 20% increase from $65.8 million in 2024.
    • Revenue in the range of $66.0 million to $72.0 million, which would represent a 11% to 21% increase from $59.7 million in 2024.
    • Non-GAAP gross margin in the range of 84.0% to 89.0%, which would compare to 86% in 2024.
    • Non-GAAP operating income in the range of $2.0 million to $7.0 million, which would compare to $5.5 million in 2024.
    • Non-GAAP diluted net income per share in the range of $0.07 to $0.19, compared to $0.25 in 2024.

    Q4 2024 Conference Call Details

    A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks on the day of the conference call, after market close. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

    Date: Wednesday, March 5, 2025
    Time: 5:00 p.m. Eastern time
    Webcast: Here (live and replay)

    About Silvaco

    Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

    Safe Harbor Statement

    This press release contains forward-looking statements based on Silvaco’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

    These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position, and guidance, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products, and anticipated results of those products for our customers, our competitive positioning, projected costs, technological capabilities, and plans, and macroeconomic trends.

    A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation, the following: (a) market conditions; (b) anticipated trends, challenges and growth in our business and the markets in which we operate; (c) our ability to appropriately respond to changing technologies on a timely and cost-effective basis; (d) the size and growth potential of the markets for our software solutions, and our ability to serve those markets; (e) our expectations regarding competition in our existing and new markets; (f) the level of demand in our customers’ end markets; (g) regulatory developments in the United States and foreign countries; (h) changes in trade policies, including the imposition of tariffs; (i) proposed new software solutions, services or developments; (j) our ability to attract and retain key management personnel; (k) our customer relationships and our ability to retain and expand our customer relationships; (l) our ability to diversify our customer base and develop relationships in new markets; (m) the strategies, prospects, plans, expectations, and objectives of management for future operations; (n) public health crises, pandemics, and epidemics and their effects on our business and our customers’ businesses; (o) the impact of the current conflicts between Ukraine and Russia and Israel and Hamas and the ongoing trade disputes among the United States and China on our business, financial condition or prospects, including extreme volatility in the global capital markets making debt or equity financing more difficult to obtain, more costly or more dilutive, delays and disruptions of the global supply chains and the business activities of our suppliers, distributors, customers and other business partners; (p) changes in general economic or business conditions or economic or demographic trends in the United States and foreign countries including changes in tariffs, interest rates and inflation; (q) our ability to raise additional capital; (r) our ability to accurately forecast demand for our software solutions; (s) our expectations regarding the outcome of any ongoing litigation; (t) our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company under the Exchange Act; (u) our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; (v) our status as a controlled company; (w) our use of the net proceeds from our initial public offering, and (x) our ability to successfully integrate, retain key personnel, and realize the anticipated benefits of the acquisition of Cadence’s PPC product line.

    It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Additional information relating to the uncertainty affecting the Silvaco’s business is contained in Silvaco’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Silvaco’s website at http://investors.silvaco.com/. These forward-looking statements represent Silvaco’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Silvaco disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

    Discussion of Non-GAAP Financial Measures

    We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share. We use these non-GAAP financial measures for financial and operational decision-making and as a mean to assist us in evaluating period-to-period comparisons.

    We define non-GAAP gross profit and non-GAAP gross margin as our GAAP gross profit and GAAP gross margin adjusted to exclude certain costs, including stock-based compensation expense, amortization of acquired intangible assets and payroll tax from the IPO lock-up release. We define non-GAAP operating income (loss), as our GAAP operating income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, and executive severance costs. We define non-GAAP net income (loss) as our GAAP net income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, executive severance costs, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on debt extinguishment, and the income tax effect on non-GAAP items. Our non-GAAP diluted net income (loss) per share is calculated in the same way as our non-GAAP net income (loss), but on a per share basis. We monitor non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.

    Certain items are excluded from our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share because these items are non-cash in nature or are not indicative of our core operating performance and render comparisons with prior periods and competitors less meaningful. We adjust GAAP gross profit, GAAP gross margin, GAAP operating income (loss), GAAP net income (loss), and GAAP diluted net income (loss) per share for these items to arrive at non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structure and the method by which the assets were acquired. By excluding certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share provide meaningful supplemental information regarding our performance.

    We believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze our financial performance and the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands except share and par value amounts)
      December 31,   December 31,
      2024   2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 19,606     $ 4,421  
    Short-term marketable securities   63,071       –  
    Accounts receivable, net   9,211       4,006  
    Contract assets, net   11,932       8,749  
    Prepaid expenses and other current assets   3,460       2,549  
    Deferred transaction costs   –       1,163  
    Total current assets   107,280       20,888  
    Non-current assets:      
    Non-current marketable securities   4,785       –  
    Property and equipment, net   865       591  
    Operating lease right-of-use assets, net   1,711       1,963  
    Intangible assets, net   4,369       342  
    Goodwill   9,026       9,026  
    Non-current portion of contract assets, net   12,611       6,250  
    Other assets   1,698       1,825  
    Total non-current assets   35,065       19,997  
    Total assets $ 142,345     $ 40,885  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 3,316     $ 2,495  
    Accrued expenses and other current liabilities   19,801       10,255  
    Accrued income taxes   1,668       1,626  
    Deferred revenue, current   7,497       7,882  
    Operating lease liabilities, current   744       735  
    Related party line of credit   –       2,000  
    Vendor financing obligations, current   1,462       –  
    Total current liabilities   34,488       24,993  
    Non-current liabilities:      
    Deferred revenue, non-current   3,593       5,071  
    Operating lease liabilities, non-current   946       1,198  
    Vendor financing obligations, non-current   2,928       –  
    Other non-current liabilities   307       221  
    Total liabilities   42,262       31,483  
    Commitments and contingencies      
    Stockholders’ equity      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024; no shares authorized as of December 31, 2023   –       –  
    Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,526,615 shares issued and outstanding as of December 31, 2024; 25,000,000 shares authorized; 20,000,000 shares issued and outstanding as of December 31, 2023   3       2  
    Additional paid-in capital   130,360       –  
    (Accumulated deficit) Retained earnings   (28,012 )     11,392  
    Accumulated other comprehensive loss   (2,268 )     (1,992 )
    Total stockholders’ equity   100,083       9,402  
    Total liabilities and stockholders’ equity $ 142,345     $ 40,885  
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in thousands except share and per share amounts)
                   
      Three months Ended December 31,   Twelve months Ended December 31,
        2024       2023       2024       2023  
                   
    Revenue:              
    Software license revenue $ 13,870     $ 8,738     $ 43,991     $ 39,331  
    Maintenance and service   3,989       3,748       15,689       14,915  
    Total revenue   17,859       12,486       59,680       54,246  
    Cost of revenue   2,422       2,682       12,042       9,354  
    Gross profit   15,437       9,804       47,638       44,892  
    Operating expenses:              
    Research and development   5,283       3,337       20,740       13,170  
    Selling and marketing   3,983       3,833       18,300       12,707  
    General and administrative   7,529       4,570       37,571       17,881  
    Estimated litigation claim   (3,782 )     –       11,306       –  
    Total operating expenses   13,013       11,740       87,917       43,758  
    Operating (loss) income   2,424       (1,936 )     (40,279 )     1,134  
    Loss on debt extinguishment   –       –       (718 )     –  
    Interest income   1,077       2       2,976       6  
    Interest and other expenses, net   (67 )     (95 )     (899 )     (630 )
    (Loss) income before income tax provision   3,434       (2,029 )     (38,920 )     510  
    Income tax provision (benefit)   (723 )     218       484       826  
    Net (loss) income $ 4,157     $ (2,247 )   $ (39,404 )   $ (316 )
    (Loss) earnings per share attributable to common stockholders:              
    Basic and diluted $ 0.14     $ (0.11 )   $ (1.53 )   $ (0.02 )
    Weighted average shares used in computing per share amounts:              
    Basic and diluted   28,734,082       20,000,000       25,672,845       20,000,000  
                   
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
      Year Ended December 31
        2024       2023  
    Cash flows from operating activities:      
    Net loss $ (39,404 )   $ (316 )
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
    Depreciation and amortization   1,285       601  
    Stock-based compensation expense   26,915       –  
    Provision for credit losses   351       220  
    Accretion of discount on marketable securities, net   (1,685 )     –  
    Estimated litigation claim   11,306       –  
    Loss on debt extinguishment   718       –  
    Change in fair value of contingent consideration   (27 )     325  
    Changes in operating assets and liabilities:      
    Accounts receivable   (5,971 )     1,378  
    Contract assets   (10,293 )     (5,208 )
    Prepaid expense and other current assets   (790 )     133  
    Other assets   57       (267 )
    Accounts payable   1,326       156  
    Accrued expenses and other current liabilities   (2,160 )     2,015  
    Accrued income taxes   74       (23 )
    Deferred revenue   (1,585 )     2,268  
    Other non-current liabilities   109       (102 )
    Net cash (used in) provided by operating activities   (19,774 )     1,180  
    Cash flows from investing activities:      
    Purchases of marketable securities   (99,630 )     –  
    Maturities of marketable securities   33,600       –  
    Purchases of property and equipment   (505 )     (339 )
    Net cash used in investing activities   (66,535 )     (339 )
    Cash flows from financing activities:      
    Proceeds from initial public offering, net of underwriting fees   106,020       –  
    Proceeds from issuance of convertible note, net of debt issuance costs   4,852       –  
    Proceeds from loan facility   4,250       –  
    Repayment of loan facility   (4,250 )     –  
    Proceeds from related party line of credit   –       1,000  
    Repayment of related party line of credit   (2,000 )     (1,000 )
    Proceeds from issuance of common stock for share-based awards   315       –  
    Payroll taxes related to shares withheld from employees   (4,575 )     –  
    Deferred transaction costs   (2,649 )     (650 )
    Contingent consideration   (74 )     (1,002 )
    Payments of vendor financing obligation   (588 )     –  
    Net cash provided by (used in) financing activities   101,301       (1,652 )
    Effect of exchange rate fluctuations on cash and cash equivalents   193       (246 )
    Net increase (decrease) in cash and cash equivalents   15,185       (1,057 )
    Cash and cash equivalents, beginning of period   4,421       5,478  
    Cash and cash equivalents, end of period $ 19,606     $ 4,421  
           
    SILVACO GROUP, INC.
    REVENUE
    (Unaudited)
                             
        2023   2024
        Q1 Q2 Q3 Q4 Year   Q1 Q2 Q3 Q4 Year
    Revenue by Region:                        
    Americas   35 % 29 % 31 % 29 % 31 %   27 % 51 % 31 % 40 % 38 %
    APAC   51 % 62 % 61 % 63 % 59 %   62 % 41 % 58 % 52 % 53 %
    EMEA   14 % 9 % 8 % 8 % 10 %   11 % 8 % 11 % 8 % 9 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue by Product Line:                        
    TCAD   62 % 62 % 52 % 62 % 59 %   66 % 69 % 59 % 71 % 68 %
    EDA   29 % 20 % 31 % 22 % 26 %   30 % 20 % 24 % 24 % 24 %
    SIP   9 % 18 % 17 % 16 % 15 %   4 % 11 % 17 % 5 % 8 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue Item Category:                        
    Software license revenue   75 % 71 % 74 % 70 % 73 %   77 % 74 % 62 % 78 % 74 %
    Maintenance and service   25 % 29 % 26 % 30 % 27 %   23 % 26 % 38 % 22 % 26 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue by Country:                        
    United States   34 % 28 % 28 % 28 % 30 %   51 % 30 % 39 % 39 % 37 %
    China   19 % 29 % 16 % 29 % 23 %   17 % 25 % 23 % 23 % 18 %
    Other   47 % 43 % 56 % 43 % 47 %   32 % 45 % 38 % 38 % 45 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
    SILVACO GROUP, INC.
    GAAP to Non-GAAP Reconciliation
    (Unaudited, in thousands except per share amounts)
                   
      Three Months Ended   Twelve Months Ended
      12/31/2024   12/31/2023   12/31/2024   12/31/2023
                   
    GAAP Cost of revenue $ 2,422     $ 2,682     $ 12,042     $ 9,354  
    Less: Stock-based compensation expense   (194 )     –       (2,974 )     –  
    Less: Amortization of acquired intangible assets   (249 )     –       (747 )     –  
    Less: Payroll tax from the IPO lock-up release   (80 )     –       (80 )     –  
    Non-GAAP Cost of revenue $ 1,899     $ 2,682     $ 8,241     $ 9,354  
    GAAP Gross profit $ 15,437     $ 9,804     $ 47,638     $ 44,892  
    Add: Stock-based compensation expense   194       –       2,974       –  
    Add: Amortization of acquired intangible assets   249       –       747       –  
    Add: Payroll tax from the IPO lockup release   80       –       80       –  
    Non-GAAP Gross profit $ 15,960     $ 9,804     $ 51,439     $ 44,892  
    GAAP Research and development $ 5,283     $ 3,337     $ 20,740     $ 13,170  
    Less: Stock-based compensation expense   (535 )     –       (5,091 )     –  
    Less: Executive severance   (215 )     –       (215 )     –  
    Less: Payroll tax from the IPO lock-up release   (397 )     –       (397 )     –  
    Less: Amortization of acquired intangible assets   (43 )     (82 )     (206 )     (339 )
    Non-GAAP Research and development $ 4,093     $ 3,255     $ 14,831     $ 12,831  
    GAAP Sales and marketing $ 3,983     $ 3,833     $ 18,300     $ 12,707  
    Less: Stock-based compensation expense   (388 )     –       (4,319 )     –  
    Less: Payroll tax from the IPO lock-up release   (85 )     –       (85 )     –  
    Less: IPO preparation costs   –       –       (178 )     –  
    Non-GAAP Sales and marketing $ 3,510     $ 3,833     $ 13,718     $ 12,707  
    GAAP General and administrative $ 7,529     $ 4,570     $ 37,571     $ 17,881  
    Less: Stock-based compensation expense   (1,410 )     –       (14,531 )     –  
    Less: Acquisition-related estimated litigation claim and legal costs   (523 )     (515 )     (4,629 )     (1,707 )
    Less: Executive severance   (200 )     –       (200 )     –  
    Less: Payroll tax from the IPO lock-up release   (163 )     –       (163 )     –  
    Less: IPO preparation costs   –       (45 )     (695 )     (1,221 )
    Non-GAAP General and administrative $ 5,233     $ 4,010     $ 17,353     $ 14,953  
    GAAP Estimated Litigation claim $ (3,782 )   $ –     $ 11,306     $ –  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   3,782       –       (11,306 )     –  
    Non-GAAP Litigation claim $ –     $ –     $ –     $ –  
    GAAP Operating expenses $ 13,013     $ 11,740     $ 87,917     $ 43,758  
    Less: Stock-based compensation expense   (2,333 )     –       (23,941 )     –  
    Less: Acquisition-related estimated litigation claim and legal costs   3,259       (515 )     (15,935 )     (1,707 )
    Less: Executive severance   (415 )     –       (415 )     –  
    Less: Payroll tax from the IPO lock-up release   (645 )     –       (645 )     –  
    Less: IPO preparation costs   –       (45 )     (873 )     (1,221 )
    Less: Amortization of acquired intangible assets   (43 )     (82 )     (206 )     (339 )
    Non-GAAP Operating expenses $ 12,836     $ 11,098     $ 45,902     $ 40,491  
    GAAP Operating (loss) income $ 2,424     $ (1,936 )   $ (40,279 )   $ 1,134  
    Add: Stock-based compensation expense   2,527       –       26,915       –  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   (3,259 )     515       15,935       1,707  
    Add: Payroll tax from the IPO lockup release   725       –       725       –  
    Add: Executive severance   415       –       415       –  
    Add: IPO preparation costs   –       45       873       1,221  
    Add: Amortization of acquired intangible assets   292       82       953       339  
    Non-GAAP Operating (loss) income $ 3,124     $ (1,294 )   $ 5,537     $ 4,401  
    GAAP Net (loss) income $ 4,157     $ (2,247 )   $ (39,404 )   $ (316 )
    Add: Stock-based compensation expense   2,527       –       26,915       –  
    Add: Amortization of acquired intangible assets   292       82       953       339  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   (3,259 )     515       15,935       1,707  
    Add: Payroll tax from the IPO lockup release   725       –       725       –  
    Add: Executive Severance   415       –       415       –  
    Add: IPO preparation costs   –       45       873       1,221  
    Add: Loss on debt extinguishment   –       –       718       –  
    Add (Less): Change in fair value of contingent consideration   (9 )     (7 )     (27 )     325  
    Add (Less): Foreign exchange (gain) loss   (14 )     (3 )     404       335  
    Add: Income tax effect of non-GAAP adjustment   (566 )     (27 )     (831 )     (169 )
    Non-GAAP Net (loss) income $ 4,268     $ (1,642 )   $ 6,676     $ 3,442  
    GAAP Net income (loss) per share:              
    Basic and diluted: $ 0.14     $ (0.11 )   $ (1.53 )   $ (0.02 )
    Non-GAAP Net income (loss) per share:              
    Basic $ 0.15     $ (0.08 )   $ 0.26     $ 0.17  
    Diluted $ 0.15     $ (0.08 )   $ 0.25     $ 0.17  
    Weighted average shares used in GAAP and non-GAAP net income (loss) per share:              
    Basic   28,734,082       20,000,000       25,672,845       20,000,000  
    Diluted   28,849,041       20,000,000       26,841,901       20,000,000  
                   

    Investor Contact:
    Greg McNiff
    investors@silvaco.com

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network –

  • MIL-OSI Russia: Yuri Trutnev: All-Russian competition “Far East – Land of Adventure” will be extended to the Arctic

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Yuri Trutnev took part in the award ceremony for the winners of the second season of the All-Russian travel competition “The Far East – Land of Adventure”

    March 5, 2025

    Previous news Next news

    Deputy Prime Minister and Presidential Plenipotentiary Representative in the Far Eastern Federal District Yuri Trutnev announced this at the National Center “Russia” during the award ceremony for the winners of the second season of the All-Russian travel competition “Far East – Land of Adventure”. The order to expand the competition to Arctic territories was given by Russian President Vladimir Putin.

    “I congratulate the winners and everyone who took part in the competition. Thank you for traveling, because it makes the world a better place, it makes your life better. You convey love for Russia, you convey love for our Far East. I am sure that the competition will continue. We will see many more wonderful films. The competition began with applications from two hundred people, this year the number of participants has tripled and amounted to more than six hundred people. At first glance, it seems that it is up to the person himself to decide where he will go to travel. But this is not so. With each route that travelers took through the Far East of our country, which they talked about and about which they made a film, people increasingly discover the beautiful Far Eastern territories,” Yuri Trutnev opened the ceremony.

    At the end of December, the application period for participation in the second season of the All-Russian competition for the best trip “The Far East – Land of Adventures” ended. In total, the organizing committee received 664 films, which is three times more than in 2022. Most often, participants went on a trip to the Sakhalin Region, where 142 films about active travel were shot. In addition, 112 films about adventures in the Khabarovsk Territory, 110 in the Kamchatka Territory, 70 in the Primorsky Territory, 57 in the Amur Region, 46 in the Sakha Republic (Yakutia), 42 films in the Republic of Buryatia, 26 in the Trans-Baikal Territory, 21 in the Jewish Autonomous Region, 20 and 18 films each in the Chukotka Autonomous Okrug and Magadan Region were admitted to the jury’s evaluation.

    The best video materials were selected by the jury members, including: TV journalist, author and host of the TV show “Neputevye Zametki” Dmitry Krylov, Arctic traveler, video blogger Bogdan Bulychev, TV host Valdis Pelsh, head of the project “More than a Journey” Olesya Teterina, State Duma deputy, author and host of the TV show “How the World Works” Timofey Bazhenov, producer of the VK project “Places” Nikita Afinogenov and other experienced travelers. The chairman of the jury was the editor-in-chief of the TV channel “My Planet” Nikolay Tabashnikov. In addition, the winners of the first season of the competition took part in the evaluation of the works: Elena Poddubnaya, Ernest Leonidov, Alisa Slyshchenko.

    The Grand Prix (the best trip to the Far East) was awarded to Moscow resident Ilya Bolshakov, a senior research fellow at the Geological Faculty of Moscow State University named after M.V. Lomonosov, for a trip to the Sakhalin Region. On the Kuril Island of Onekotan, the traveler visited the extinct Krenitsyn volcano, which is also called a “volcano within a volcano” and is considered one of the most beautiful in the world. “As a child, I did not dream of becoming a traveler. I did not dream of mountains or tents. I grew up as an ordinary child. It is even more amazing now to realize that I have become a geologist. And together with my friends, I spent 26 days last summer on an uninhabited island in the Pacific Ocean. During this time, we walked more than 200 km, covered 15 km by water and conquered one of the most unusual mountains on Earth,” the traveler said.

    In the nomination “Best Hiking Trip”, the first and third places were awarded to trips around the Sakhalin Region. Both travelers are residents of Moscow. The first place was taken by Anastasia Kolonskaya for her trip around the Sakhalin Region. The contestant covered 100 km in ten days, inspired by the picturesque expanses of Kunashir Island. During her trip, she saw the Tyatya volcano, the columnar rock (kekur) Monakh, or, as it is also called, the Devil’s Finger, Cape Stolbchaty and many other places. The film was shot in the format of reading hiking notes and supplemented with the author’s sketches. Third place went to Grigory Gorchakov, who traveled to the northern Kuril Islands and delighted the jury with views of untouched, wild nature. Second place was awarded to Nikita Bulanov, a resident of Buryatia, for a trip around his region. An eight-minute video about the filming of the movie “Along the Taiga, Lake and Steppe” about a journey through the picturesque places of the republic and the difficult history of one family was submitted to the competition.

    First place in the nomination “Best Water Journey” was awarded to Viktor Kitsan. He submitted an eight-minute film “Home” about family, love, strength and a journey across the Sea of Japan. Second place in the nomination was awarded to Valery Reitenberg, a resident of Khabarovsk Krai, for a journey to the Kuril Islands. Third place was awarded to a journey across Kamchatka Krai. Vyacheslav Borisovsky, a resident of Petropavlovsk-Kamchatsky, presented the film “Kamchatka. On Distant Shores”. The route of the journey on a sailing yacht ran from Petropavlovsk-Kamchatsky through Vilyuchinsky Bay, where the author took photographs of the volcano of the same name, to Cape Kekurny to photograph the life of walruses and listen to the bay.

    Two places in the nomination “Best Winter Trip” – the second and third – were taken by trips around Buryatia. The awards were received by residents of the region. Buda Tsydypov, who took second place, is engaged in organizing hiking tourism with a focus on mountaineering, helps in organizing ecological trails in the Eastern Sayan Mountains. He presented a route for climbing the highest peak of the Sayan Mountains, Munku-Sardyk. Third place was received by Elihan Batotsyrenov. He sent to the competition the film “Nukhen Daban – The Path of Discoveries” about the journey of a group of ten brave explorers through the majestic mountains. First place in the nomination was awarded to Mikhail Nepogodin, a resident of the Khabarovsk Territory, for a trip through the Badzhalsky Range – a mountain range located in the Verkhnebureinsky District.

    The winner in the category “Unlimited Possibilities” was Elena Zinovieva, who traveled around Kamchatka with her son. “My son has been blind since birth, but this does not stop us from traveling around Kamchatka. The most desired moment was when we crossed the Sea of Okhotsk by plane. The joyful emotions of the child when I tell him where we are flying are worth a lot. I am the child’s eyes and am always next to him,” says the traveler.

    12-year-old Diana Abazova won in the nomination “Best Children’s Travel”. The young resident of Khabarovsk Krai traveled to the place of power of her native region – Mount Magloy, considered sacred by the Nanai people.

    In the nomination “Best Journey with Marine Life” the winner was Muscovite Valentin Morozov for his trip to see bowhead whales in Wrangel Bay in Khabarovsk Krai.

    “A lot has been said about the unique nature of the Far Eastern regions. But I want to emphasize how incredible the people of the Far East are. In the ocean, in the mountains, in the harsh taiga, it is impossible to lie or dissemble. The feeling of elbow, support both in one’s own strength and in those who are nearby – this is what distinguishes the Far East and helps the region to develop rapidly. And of course, only such people, with a powerful character and a huge soul, can be allowed close to the mysterious inhabitants of the sea depths,” noted the Minister for the Development of the Far East and the Arctic Alexey Chekunkov.

    The winner of the special nomination “Best Trip to Chukotka” was Nikita Bereznyakov. He presented the film “On Foot in Chukotka. In the Footsteps of Ancient Eskimos”.

    “Chukotka is a special region in the Far East: a new day begins astronomically here, the sun rises. We have magnificent, unforgettable nature, one of the largest nature reserves “Beringia”, along the shores of which whales migrate. You can come and take pictures with them. When we established this nomination, we really wanted many films to be made. It is impossible to make a good film if you do not love the place you are talking about, if you do not love Chukotka. And love is very easily transmitted. And it really worked out. Many thanks to those who did it,” emphasized the Governor of the Chukotka Autonomous Okrug Vladislav Kuznetsov.

    The non-competitive prize for “Best Nature Film” was awarded to the full-length film “Fire Fox”.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Russia: Financial news: On 06.03.2025, the deposit auction of the PPC “TERRITORIAL DEVELOPMENT FUND” will take place

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    Parameters: Date of the deposit auction 06.03.2025. Placement currency RUB. Maximum amount of funds placed (in the placement currency) 1,500,000,000.00. Placement term, days 11. Date of depositing funds 06.03.2025. Date of return of funds 17.03.2025. Minimum placement interest rate, % per annum 21.00. Terms of the conclusion, urgent or special (Urgent). Minimum amount of funds placed for one application (in the placement currency) 1,500,000,000.00. Maximum number of applications from one Participant, pcs. 1. Auction form, open or closed (Open).

    The basis of the Agreement is the General Agreement. Schedule (Moscow time). Applications in preliminary mode from 10:30 to 10:40. Applications in competitive mode from 10:40 to 10:45. Setting the cutoff percentage rate or declaring the auction invalid before 10:55.

    Additional terms

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    HTTPS: //VVV. MOEX.K.M.M.

    MIL OSI Russia News –

  • MIL-OSI Security: Mr Pavel Zeman rejoins Eurojust as National Member for Czech Republic

    Source: Eurojust

    Commenting on his return to Eurojust, Mr Zeman stated: I’m very pleased to come back to Eurojust as it is a unique and necessary institution. I see three goals I want to contribute to: the continuation of effective support to practitioners, the development of Eurojust and the creation of a good working environment. To achieve that, we need perfect cooperation between the National Desks and the administration. Everybody must bear in mind that Eurojust is only successful if our clients – the practitioners – are satisfied with our support. And I want Eurojust to succeed.

    The new National Member for the Czech Republic graduated in Law at the Charles University of Prague in 1998 and became a public prosecutor in 2001. Mr Zeman specialised in cross-border judicial cooperation in criminal matters and later joined the Prosecutor General’s Office. With the entry of the Czech Republic into the European Union, he became the country’s first National Member at Eurojust.

    Mr Zeman was appointed Prosecutor General in 2011, holding this position until 2021. Subsequently, he became a specialised prosecutor in cybercrime, the criminal liability of legal entities and war crimes. He lectures on cybercrime, corporate liability, plea bargaining, judicial ethics and war crimes. He also provides training to prosecutors on media-related matters.

    Mr Zeman left the prosecution service in 2024 to lead the Internal Audit Department of the Czech National Bank. Early this year, he returned to the Prosecutor General’s Office, and as of 1 March was appointed Czech National Member at Eurojust. He remains affiliated with Prague Charles University as well as a lecturer at the Czech and Slovak judicial academies. In addition to his mother tongue, Mr Zeman speaks English, German, French, Slovak and Russian.

    MIL Security OSI –

  • MIL-OSI Russia: Financial news: 05.03.2025, 14-52 (Moscow time) the values of the upper limit of the price corridor and the range of market risk assessment for the security RU000A0JWV89 (Akron B1P1) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    05.03.2025

    14:52

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 05.03.2025, 14-52 (Moscow time), the values of the upper limit of the price corridor (up to 84.27) and the range of market risk assessment (up to 892.06 rubles, equivalent to a rate of 11.25%) of the security RU000A0JWV89 (Akron B1P1) were changed.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

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    MIL OSI Russia News –

  • MIL-OSI Russia: Dmitry Patrushev and Murmansk Region Governor Andrey Chibis summed up the results of the implementation of the national project “Ecology” in the region

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Deputy Prime Minister Dmitry Patrushev held a working meeting with the Governor of the Murmansk Region Andrey Chibis.

    Murmansk Region took second place in the national environmental rating of Russian regions based on the results of last autumn. Andrey Chibis spoke about the solutions developed aimed at preserving the Arctic nature.

    The head of the region reported that since 2019, within the framework of the strategic plan “Living in the North!” and thanks to the implementation of the national project “Ecology”, it has been possible to reduce total emissions into the atmosphere by 32%, eliminate more than 1.6 thousand landfills. More than 8.7 thousand hectares of forests have been restored, more than 287 km of the coastal strip of water bodies have been put in order and cleared of garbage. This work will be continued as part of the region’s participation in the new national project “Ecological Well-Being”.

    The meeting participants also noted that environmental protection issues will become an important part of the agenda of the International Arctic Forum, which will be held in Murmansk on March 26–27.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Russia: Financial news: 05.03.2025, 15-37 (Moscow time) the values of the upper limit of the price corridor and the range of market risk assessment for the security RU000A105NK5 (MOEK BO1P5) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    05.03.2025

    15:37

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 05.03.2025, 15-37 (Moscow time), the values of the upper limit of the price corridor (up to 96.5) and the range of market risk assessment (up to 1012.61 rubles, equivalent to a rate of 7.5%) of the security RU000A105NK5 (MOEK BO1P5) were changed.

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    MIL OSI Russia News –

  • MIL-OSI Russia: Financial news: 05.03.2025, 16-04 (Moscow time) the values of the upper limit of the price corridor and the range of market risk assessment for the security RU000A1008P1 (Rosnft2P6) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    05.03.2025

    16:04

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 05.03.2025, 16-04 (Moscow time), the values of the upper limit of the price corridor (up to 90.43) and the range of market risk assessment (up to 960.28 rubles, equivalent to a rate of 11.25%) of the security RU000A1008P1 (Rosnft2P6) were changed.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

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    MIL OSI Russia News –

  • MIL-OSI Russia: Financial news: 05.03.2025, 16-09 (Moscow time) the values of the upper limit of the price corridor and the range of market risk assessment for the security RU000A0ZYJ91 (FSK RS B4) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    05.03.2025

    16:09

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 05.03.2025, 16-09 (Moscow time), the values of the upper limit of the price corridor (up to 105.91) and the range of market risk assessment (up to 1092.88 rubles, equivalent to a rate of 7.5%) of the security RU000A0ZYJ91 (FSK RS B4) were changed.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

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    MIL OSI Russia News –

  • MIL-OSI Russia: Financial news: 05.03.2025, 16-24 (Moscow time) the values of the upper limit of the price corridor and the range of market risk assessment for security RU000A101590 (DOM 1P-7R) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    05.03.2025

    16:24

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 05.03.2025, 16-24 (Moscow time), the values of the upper limit of the price corridor (up to 101.6) and the range of market risk assessment (up to 1086.66 rubles, equivalent to a rate of 7.5%) of the security RU000A101590 (DOM 1P-7R) were changed.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

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    MIL OSI Russia News –

  • MIL-OSI Russia: Dmitry Patrushev took part in a joint meeting of the Supervisory and Trustee Boards of MGIMO

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The annual joint meeting of the supervisory and trustee boards of MGIMO of the Russian Foreign Ministry took place in Moscow. Deputy Prime Minister Dmitry Patrushev took part in it.

    Dmitry Patrushev took part in a joint meeting of the Supervisory and Trustee Boards of MGIMO.

    March 5, 2025

    Previous news Next news

    “Since 2018, MGIMO and the Ministry of Agriculture have had an agreement to establish a basic department. Its key objective is to train highly qualified specialists with an understanding of the international specifics of trade and promotion of agricultural products. Over 130 people have graduated in six years. These are professionals who successfully work as representatives of the Ministry of Agriculture abroad, as well as in leading companies in the industry. I think that the competition for these areas will only increase. Agricultural markets are of serious interest today, and we are ready to develop this area,” Dmitry Patrushev noted.

    The meeting was chaired by Foreign Minister Sergey Lavrov. Members of the Supervisory Board and Trustees of MGIMO heard a report by MGIMO Rector Anatoly Torkunov “On the University’s Activities in 2024 and the Main Provisions of the MGIMO Development Program “Priority. Technological Leadership” for 2025-2036.”

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    MIL OSI Russia News –

  • MIL-OSI USA: Senate Intelligence Vice Chair Warner on Move to Cease Intelligence Sharing with Ukraine

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner
    WASHINGTON – Today, Senate Select Committee on Intelligence Vice Chairman Mark R. Warner (D-VA) released the following statement:
    “The Trump administration has followed its recent ill-advised and weak decision to cut off military assistance to Ukraine by now also callously shutting off intelligence sharing with the hard-pressed Ukrainians as they continue to defend their country against the ongoing military onslaught of Vladimir Putin’s army. Instead of standing up to Putin, President Trump has given away American power to Russia – from voting at the UN with Russia and North Korea and against all of our allies, to directly negotiating with Russia at the highest levels while excluding Ukraine, to refusing to condemn Vladimir Putin’s dictatorship while unjustly calling the democratically elected Ukrainian president a ‘dictator’ and ejecting him from the White House. And, all the while, Putin has not let up on his illegal assault against Ukraine. Allied intelligence support has been crucial to enable Ukraine to defend itself from the first days of the conflict in February 2022, to unmask Russian invasion plans and intentions, and to save countless innocent lives. Let me be clear: Cutting off intelligence support to our Ukrainian partners will cost lives.”

    MIL OSI USA News –

  • MIL-OSI Russia: Transcript of Press Briefing on the Completion of the Third Review for the IMF Extended Fund Facility for Sri Lanka

    Source: IMF – News in Russian

    March 5, 2025

    PARTICIPANTS:

    PETER BREUER

    Senior Mission Chief for Sri Lanka

    KATSIARYNA SVIRYDZENKA

    Deputy Mission Chief for Sri Lanka

    MARTHA TESFAYE WOLDEMICHAEL

    Resident Representative in Sri Lanka

    MODERTOR:

    RANDA ELNAGAR

    Senior Media Officer

    TRANSCRIPT:


    Ms. Elnagar:      Good morning to our participants who are joining us from Asia and good evening to our participants in DC. Welcome to the press conference on of the Third review of Sri Lanka’s Extended Fund Facility Arrangement with the International Monetary Fund. I am Randa Elnagar, with the IMF’s communications department.

    I am joined today by three speakers. Peter Breuer, IMF’s Senior Mission Chief for Sri Lanka; Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka; and Martha Tesfaye Woldemichael, IMF’s Resident Representative in Sri Lanka.

    By now you should have seen the press release, which we issued on Friday and the staff report is not on IMF.org. First, Peter will give some opening remarks, and then we will take your questions.

    We are kindly asking you to mute your microphones throughout the briefing, unless you are asking a question. Peter the floor is yours.

    started transcription


    Mr. Breuer:     Thank you, Randa. Good morning, all, thank you very much for being here and for your interest in Sri Lanka’s IMF-supported economic reform program.

    I am pleased to announce that, on Friday February 28, the IMF Executive Board approved the third review under the 48-month Extended Fund Facility Arrangement with Sri Lanka. This provides the country with immediate access to about US$334 million to support its economic policies and reforms.

    It brings the total IMF financial support dispersed so far to about $1.3 billion.
    The IMF continues to support Sri Lanka’s efforts to restore and maintain macroeconomic stability and debt sustainability while protecting the poor and vulnerable rebuilding external buffers. Safeguarding financial sector stability and enhancing growth oriented structural reforms, including by strengthening governance.

    The IMF Executive Board’s approval to complete the third review recognizes the strong program performance. All quantitative targets for end December 2024 were met, except for the indicative target on social spending.
    Most structural benchmarks do by end January 2025 were either met or implemented with delay.

    Turning to through the macroeconomic situation, it is encouraging to see that reforms in Sri Lanka are bearing fruit with the economic recovery gaining momentum, inflation remains slow.

    Revenue collection is improving and reserves continue to accumulate.
    Economic growth averaged 4.3% since growth resumed in the third quarter of 2023.
    The recovery is expected to continue in two thousand 2025 now. Despite these positive developments, the economy is still vulnerable.
    It is critical to sustain the reform momentum to ensure macroeconomic stability and debt sustainability.

    And to promote long term inclusive growth, there is no room for policy errors.
    Let me emphasize that sustained revenue mobilization is crucial to restoring fiscal sustainability.

    And ensuring that the government can continue to provide essential services.
    Boosting tax compliance and refraining from tax exemptions are key to maintaining support for economic reforms.

    Let me also emphasize that to ease economic hardship and ensure the poor and vulnerable can participate in Sri Lanka’s recovery, it is important to meet social spending targets and continue with reforms of the social safety net going forward. Social support needs to be well targeted towards the.

    Most disadvantaged, so as to promote inclusive growth with limited fiscal space.
    Restoring cost recovery, electricity pricing without delay is needed to contain fiscal risks from state owned enterprises.
    A smoother execution of capital spending within the fiscal envelope would foster medium term growth.

    The recent successful completion of the bond exchange is a major milestone towards restoring debt sustainability, timely finalization of bilateral agreements with creditors in the official creditor committee, and with remaining creditors is a priority now. Regarding monetary policy, I would like to highlight that it should prioritize maintaining price. Stability supported by sustained commitment to prohibit monetary financing and.

    To safeguard central bank independence. Continued exchange rate, flexibility and gradually phasing out the balance of payments measures remain critical to rebuild external buffers and facilitate rebalancing.

    As for the financial sector, resolving non performing loans, strengthening governance and oversight of state owned banks and improving the insolvency and resolution frameworks are important priorities to revive credit growth and support the economic recovery.

    Finally, prolonged structural challenges need to be addressed to unlock Sri Lanka’s long term potential, including steadfast implementation of governance reforms.
    I would like to thank the authorities for their commitment and excellent collaboration.

    Let me also take this opportunity to announce that as part of a standard staff rotation process, I will soon be transitioning from the role of mischief for Sri Lanka.
    And I will be handing over to the next mission Chief Evan Papageorgiou, during the next mission. It has been an honor to accompany Sri Lanka on his journey out of this.

    Severe crisis for nearly three years. While there are more challenges ahead, the IMF team will remain a steadfast partner for Sri Lanka and its people on the road to a more sustainable and inclusive recovery.
    I will be moving to another assignment soon and wish the people of Sri Lanka continued success with the economic recovery.
    With this, let me hand it back to Rhonda. Thank you.


    Ms. Elnagar:     Thank you so much, Peter.
    Colleagues, please raise your hand and identify yourself if you want to ask your question and turn on your camera, if possible and the mic. Thank you. I see the first hand, please.


    QUESTIONER:     Thank you, Randa. This is Shihar Anis from economy next.
    I hope you can hear you.


    Ms. Elnagar:     We can hear you well, Shihar. Thank you.


    QUESTIONER:     OK. So my question is now there is a delay in the SOE restructuring because we don’t see the same speed that the previous government was doing, the SOE restructuring this government has been. Basically, they are not into privatization, but they are looking into a different model. How concerned are you on that? You know, delay or the current restructuring model.
    Thank you.


    Ms. Elnagar:     Thank you. We’ll take another couple of questions and then answer them in groups.


    Ms. Elnagar:     The audio. Zulfiq there is a lot of static on your mic.


    QUESTIONER:     Hope you can hear me. I have two questions. That is, it has come to light that the Sri Lankan Government plans not to proceed with the imputed rental income tax as a revenue measure. So has this been discussed with the IMF and is there any other alternative that is being put forward and at the same time, what is IMF stake on the budget that was presented recently?


    Ms. Elnagar:     Let’s take another question. Sampath, please.


    QUESTIONER:     Hi I’m Sampath Dissanayake from BBC Sinhala service.
    The government is increasing the tax as per the IMF advice to increase government revenue. The number of people receiving Social Security benefit in benefits in Sri Lanka is increasing annually. So do you believe that the increase in tax burden is increase for reason for this?


    Ms. Elnagar:      Peter, we can take these three questions.


    Mr. Breuer:     Yes, thank you very much. So let me answer some of the questions.
    On the budget and fiscal, and maybe Katie can answer the question on the.
    SOE reforms so the. Imputed rental income tax was a measure proposed by the previous administration as part of a possible revenue package for 2025, and the new authorities have proposed a slightly different package that is aligned with their mandate and priorities. And staff and the authorities have assessed that this package is sufficient to meet the revenue targets under the program. Now of course, should those measures prove insufficient, then additional revenue measures would be needed. And so that also. Ties in with the question on the budget and tax revenues. So yes, we have looked at the budget. And have, of course, disgusted with the authorities. There’s more detailed explanation in the staff report that should be online now, so there’s a table on page 12 that kind of lists some of the main measures needed to. reach the goal for tax revenue for next year. Yeah, reallybthe objective here is as you know tax revenue was a key driver of the crisis in 2022.
    Sri Lanka was the lowest that the country with the lowest tax take amongst.
    Middle income countries and low income countries in the world, and so it has made significant progress since then. Tax as a share of GDP, he has increased by 5 percentage points from somewhere. You know 7 to somewhere 12.4% or so last year. So that’s a significant increase, but by no means is excessive and. The essential services that the government provides need to be funded and for that reason.
    Working on ensuring that there is sufficient tax revenue remains a priority.
    And so social services, which was the 3rd question is just a portion of the overall essential services that that the government provides and is just a component on that actually. Maybe Marta can add on that point and cut you a can speak to the SOE reforms.


    Ms. Svirydzenka:     So should I go first? OK. So on the on the SOE restructuring, the most crucial element is that the state owned enterprises are managed in a prudent manner so as to avoid the accumulation of losses or debts that then would eventually need to be repaid by the taxpayers. And in that sense, the SOEs can be managed prudently while remaining state owned or they can be divested partially or completely.

    We are reassured by the authorities commitment to ensure that this enterprises do not become a burden for the budget or for the government debt in terms of other key elements under the program has been the cost, reflective pricing of services provided by so especially in the area of electricity and fuel prices. Other commitments under the program include making SOEs more transparent, in particular by publishing audited financial statements of the largest, SOEs in a timely manner.

    And then finally, to allow the economy to grow, it is important that the consumers of services receive the best value for the price of being charged. So this involves running, SOEs in the most efficient manner and ensuring that they are following the best governance principles. So in that sense, we’re quite satisfied with the progress, yes.


    Martha Tesfaye Woldemichael:     So let me maybe come in then to compliment a bit Peter’s response on the social spending, right. So there’s a question. Why social spending is increasing? I think this is a good opportunity to remind that protecting the poor and vulnerable is really an important component of the EFF program. So the EFF supports this objective through the different reforms through macro stabilization. But importantly, there is also a floor on social spending in the program that we assess on a quarterly basis. So this means the government has to spend a minimum amount to protect the poor and vulnerable.

    So in this context, the key commitment is really for the authorities to continue strengthening the coverage, the adequacy and the targeting of social spending. So recent announcement related to the expected decrease in the payments, for instance for the poor and extremely poor categories under a ASWASUMA or the.
    Announcement that the payments would also increase for the elderly, the disabled and chronic kidney patients are aligned with the authorities commitments to continue strengthening, strengthening social safety Nets and I think it is also very important to make sure that this coverage under the ASWASUMA program. Is above the poverty rates that are currently observed. I think I will stop here. Thank you very much. Back to you, Randa.


    Ms. Elnagar:     Thank you, Martha. We’re first going to take a question from Kelum.
    I think Shihar you had your hand raised, so it’s from the first question. So if you can, please put your hand down because it’s a bit confusing, but we’re going to go to Kellum 1st and then Asante. So Kelum, please go ahead.


    QUESTIONER:     Thank you. Can you hear me?


    Ms. Elnagar:     Yes.


    QUESTIONER:     Yes, I’m Kelum Bandara, from Daily Mirror newspaper. So my question is wanting the overall assessment about the budget, actually that was answered was that next day and the next question is, how important is it for the government to proceed with this Economic Transformation Act to reach the economic targets? Actually in searching by MFN or for the broader infrastructure of the country.


    Ms. Elnagar:      Thank you Asante. If you can, please pose your question.


    QUESTIONER:     Yeah, so, the government has started the import duty on vehicles, which just knocked out earlier. Yeah, I think all the taxes were kind of like excise taxes. And so have you made any assessment on whether this will lead to an increase in assembled vehicles, which earlier didn’t get this tax protection and how much leakage of revenue might happen to the assembled sector and whether any effect to publish a kind of a tax expenditure statement to say how much of the import duties lost due to any increase or the sales of the assembled vehicles which are like got CKD, I think tax free the parts and also have you had any discuss? With the central bank. On offloading their government securities now that the Treasury bills

    Ms. Elnagar: Thank you, Asantha. There is a question in the chat which we’re going to take and then move to the ones online. Amal, you didn’t verify your organization.


    QUESTIONER:     Oh, and I have actually done that. I’m from AFP, the French news agency, Agence France Press.


    Ms. Elnagar:     Hi would you like to ask? Yeah, because you post in the in the chat.


    QUESTIONER:     Oh yeah. I mean, if you want to save time, can just answer that.
    I mean basically I was trying to ask Peter how concerned you are about sort of emerging labor unrest, particularly now in the medical field. The doctors are threatening to go on strike from tomorrow, although there is a pay increase that the increase is less than the. Reduction of their allowances. So this is something that affects a lot of not just the medical sector. So how concerned are you that this kind of growing unrest, labor unrest, how it will affect the overall IMF backed program?


    Ms. Elnagar:      Peter, do you want to take another question?
    So they are three. So I think Indiqa is next.


    Mr. Breuer:      Well, there’s actually an under. It feels like there’s a bunch of questions.
    Should we try and answer these?


    Ms. Elnagar:      OK. Sounds good.


    Mr. Breuer:      And maybe Katya can speak to the Economic Transformation Act.
    And also to the central bank question so. On this important question with respect to the potential for unrest. Well, I suppose there is potential, but I think what really should be remembered is that this budget really sought to address some of the concerns that the government and ourselves have hurt that. You know, civil servants have been concerned about. The wages that they have been receiving and so.
    There is for the first time in a long time, an increase in civil service wages, while at the same time the personal income tax regime is were being changed and reducing personal income taxes considerably, at least for some. Income earners, including civil servants, you have to remember who are the ones who earn an income and pay taxes that really is the upper 20% of income earners in Sri Lanka. There has been a massive crisis in 2022 with huge costs to the population of Sri Lanka and in order for the government to keep on providing the essential services that the citizens of Sri Lanka expected, expect the government to provide and in order to bring along the poorer segments of society. Everyone who can needs to make a sacrifice.
    This is how the society can pull together and continue to function, and so.
    I think we all know how painful this crisis has been there’s no doubt about it.
    We have travelled around the country, we have met with many people.
    You know the plantation workers in Noro, alia have shown us their income statements and their bills. And it was very, very clear that this is a very severe crisis, but how else to address it. So, sticking with the reforms is really the best way out for Sri Lanka to assure its sustainability, and I think it’s important for everyone in Sri Lanka to recognize that.

    If you put it into the broader perspective the adjustment, this is the last budget.
    Where there is still a bit of an increase in in revenue is needed 1.5 percentage points of GDP, but all the hard adjustment has already taken place in the previous two years. You know revenue have increased 5 percentage points of GDP over the last two years. This is, you know, the last sort of big push. Not quite as big as in the previous years, and there after it’ll be much easier going forward.

    So on the cars I mean that’s a specific question. Does is there some import substitution? I can’t answer that. I would assume that after five years or so of a ban of imported cars that there will be some demand for finished cars from overseas.
    I do take your point that it’s possible that there may be some assembly of cars domestically.

    Katya, can you answer the other two questions please?


    Ms. Svirydzenka:     Sure. So on the economic transformation, bill, we understand there was a recent announcement that the new government will propose amendments to the bill. And so we look forward to reviewing the amended economic transformation bill. We expect it to be consistent with program objectives, including for example with the authorities’ commitment to refrain from granting tax.
    Incentives until the STP act is revised to provide clear and transparent criteria on the granting of tax incentives on the. Central Bank Securities, I understand the question was that the Central Bank has sold T-bills but has a stock of on marketable bonds. And this is correct. And under the program at this point, because there’s no market for this restructured bonds, we do not envision they unwinding of this stock and over the next 12 months you can see it in the program targets in table one on page 95 of the published report under the category of net credit to the government.
    I hope that answers the question. If I understood it correctly.

     

    QUESTIONER: So, I am trying to find out what’s the alternative if you want to sterilize the inflows. I mean, kind of issuing central banks equity or something, but you have reserve target.


    Ms. Svirydzenka:     Is this more than a question about the operation of monetary policy and how to sterilize reserve accumulation?


    QUESTIONER:     Yeah. Yeah. Because you don’t you?


    Ms. Svirydzenka    : Perhaps I misunderstood.


    QUESTIONER:     You no longer have the tables to sell. What is the alternative securities they can sell to build?


    Ms. Svirydzenka    : Yes, I understand. Thank you so much for clarifying. Yeah. So there are many alternatives that the Central bank can use. For example, they can engage in repo operations or also issue their own securities. But I guess what is important to highlight for your question is that the Central Bank so far has been able to meet the inflation target and if anything, they’re a little bit undershooting as you saw with the breach of the MPCC clause in June and in December. So in that sense, the central bank is quite effective in terms of reaching the inflation objectives and we think the tools they have in their, in their in their hands should be enough.


    Ms. Elnagar:      Thank you, Katya. We have more questions, Peter.
    We have Indika first please.


    QUESTIONER:      Hi, Randa. Thank you, I think. I hope I’m audible.


    Ms. Elnagar:     Yes you are.


    QUESTIONER:     My questions, question to Peter is in the budget, there is a budget proposal to recruit about 30,000 people to the public sector. So we already have a bloated public sector in the country. So what’s your what’s IMF’s opinion on that? And the other question is on their flight, electricity, the price, reflective electricity tariffs. So we were under the impression that that is already happening because the government is already. Adjusting prices periodically, but in the press release that was released on Friday. The sort of insinuated that Sri Lanka S deviated. What is what is the situation there? Thank you.


    Ms. Elnagar    : Peter, we can take a couple more questions this round.


    QUESTIONER:     Randa, I hope I’m audible.


    Ms. Elnagar:     Yes you are.


    QUESTIONER:     Great. I just have one question. Peter, could you please outline what are the key goal posts that Sri Lanka has to hit as it moves forward to the 4th review now, right. And when will there be an IMF delegation coming to Colombo?
    Thank you.


    Ms. Elnagar:     We can take more questions. There are two questions in the chat, Peter, One is asking, why was the proposed property tax under the IMF program withdrawn, and why wasn’t the existing under taxed Council tax system rebased instead? How much revenue was expected from the input rental tax and why could this be? Couldn’t this be raised adjusting Council taxes? There’s another one we can take, or that’s enough for now this round.


    Mr. Breuer:     Yeah. Why don’t we get going with these ones? Thank you.


    Ms. Elnagar:      Yeah, because Shehar already had a chance at the beginning, so let’s take a different group now. Thank you.


    Mr. Breuer:     So thanks so much for these questions. On the size of the public sector, that’s really not for us to judge the government needs to sort of identify the resources it needs to provide the services that it’s expected to provide.
    And do all of that within the envelope of the program. So there may be other institutions. The World Bank, for example, you know that can provide some more assistance, technical assistance to help with making the government as efficient as as possible. But. I don’t really have a comment there. The electricity tariff.
    So there was a reduction in the electricity tariffs in January, and this is when we feel that the cost reflective pricing was no longer met because on a forward-looking basis. That tariff cut meant that Ceb wouldn’t be able to avoid any losses.
    So these cuts. Essentially, at least on a forward-looking basis, implied that losses would be run now of course. These profits and losses by the electricity company depend on many factors, including the weather, the rain and so forth.
    So what turns out ex post may be different from what happens ex ante, but this is a concern that we have because it could mean that that starts building up again in the electricity company. That could ultimately become a contingent liability for the government. This is something that, of course, Sri Lanka has experienced before, and avoiding this and making sure that consumers on average pay for how much it costs to generate and distribute the electricity is an important part of the program.

    And this actually also goes towards answering the question of what are some of the main goal posts for the 4th review. So ensuring that cost reflective energy pricing is restored is of course a key. Part of what we would like to see for the next.
    Review I should say there are some mechanisms that give us hope that this will happen automatically. The SD bulk supply transaction account, which is sort of a mechanism that is supposed to kick in when losses at CB become too large when they are cash balances become. You know, negative beyond a certain value.
    Then there’s meant to be an automatic increase in the tariff. That would prevent these losses from accumulating, so so they are already mechanisms in place.
    It’s important that these mechanisms be allowed to function, and then, of course, at the next tariff setting, it’s important to ensure that tariffs will once again be set to  cover the costs. Another important Issue for the next review will of course be.
    The budget that the budget that is finally passed at the end of this month is in fact consistent with the program parameters. So this is something that we will be watching very carefully. So those are two issues that may matter.

    The next mission we expect to be visiting Colombo.in the coming weeks or months or so. So the exact dates will be announced closer to the time.
    With respect to the property tax. That is a property tax. Is very common in many countries it is a form of wealth tax whereby those who have more wealth, meaning more expensive homes, larger homes that are worth more, need to make larger contributions to the tax coffers and support the government. So, now it’s it had been discussed for quite some time previously, and in fact many preparations have been made under this program for property tax with respect to, you know sales price and rents register, and various databases to estimate the values of homes. So lots of preparations have been have been made. Then there were some concerns and this goes towards the question with respect to the local authorities how this tax could be raised and how it could be shared with at the at the central government level. So some of these issues still need to be resolved and so this is this is something I think that is as yet you know to be addressed. Let me stop there. Thank you.


    Ms. Elnagar:      Peter, we can take a couple more questions because we are out of time. So we can take from Sisira, who has been waiting patiently, and then we have a couple of questions in the chat. So Sisira, please go ahead. We can’t hear you.
    Sisira do you have a question? You have your hand raised?


    QUESTIONER:     Yeah. Can you hear me?


    Elnagar, Randa Mohamed:     Yes.


    QUESTIONER:      My question is, what is the impact?


    Ms. Elnagar:     Your mic is a bit muffled.


    QUESTIONER:     Can you hear me?


    Ms. Elnagar:     Peter, can you hear him?


    Mr. Breuer:     It’s very, very soft. I don’t know whether you can bring the mic closer to him.


    QUESTIONER:     Yeah, my question is what is the projected impact of Sri Lanka’s foreign reserves?


    Mr. Breuer:     I think the question is what is the impact of the car imports on reserves? Yeah, OK.


    Ms. Elnagar:     Vehicle import. Yeah. And then we have a couple of questions here.
    Amal already asked the question, a supplementary question regarding what Asantha raised about vehicle imports. So it’s the same topic and then we have. One from Ishara. Even though the IMF program has put Sri Lanka’s economy on the right track, a recent poverty study revealed that more than 50% of households are below the poverty line. Additionally, the Central bank mentioned that brain drain could severely impact efforts to accelerate growth. In this scenario, how can Sri Lanka reach its anticipated IMF recovery targets? And these are the last questions of the press conference.


    Mr. Breuer:    :Yeah. Thank you very much. On the car imports. So yes, removing the import restrictions on car imports will allow cars to be imported which means they have to be paid for and so that could have an impact on the balance of payments. But as you know there’s a question to what extent you know the Central bank should intervene to make those reserves available versus allowing the exchange rate to fluctuate in response to market forces. So, that is something that remains to be seen, but maybe just to highlight the fact that reserves have increased. Significantly, so far under the program they have reached about half of the program objective already, which is very impressive.

    On the question with respect to the anticipated IMF recovery targets, so. I think it’s quite clear that things really have turned around significantly in Sri Lanka. I mean, you all live there, so you experience it much more than us. But when I first got to Sri Lanka in June 2022. Everybody was standing in a line somewhere in, you know, to get fuel, to get cooking gas to get food or medications and economic activity was was very subdued, I think in real terms. Sri Lanka lost, you know, 10% or so of its economic activity. As a result of this crisis and since then in the short amount of time.
    That the program has been there basically since 2023 it has already recovered 40% of the income it has lost. In the preceding five years, so in a very short amount of time, you have already a very significant recovery. You have the most recent growth number of 5.5%.

    So I think things are turning around significantly in Sri Lanka and that will have an impact on the indicators that we care about, such as poverty, so.
    As economic opportunities return to Sri Lanka. Incomes will increase and poverty will be reduced, and also it’ll be more attractive to remain in Sri Lanka and not leave and emigrate or those who have emigrated may find opportunities back in in Sri Lanka again so. You know, as you look at our projections, we have increased these quite a bit. For 2025 and beyond and so based on these, I would say I’m quite optimistic about the recovery in Sri Lanka.


    Ms. Elnagar:     I think we’re out of time, Peter. If you guys have any further questions, please, please feel free to send them by e-mail. We are always very responsive or via WhatsApp. With that I would like to thank our speakers Peter, Katia, and Martha, and I would like to thank you all for participating in this press conference.
    We’re going to be posting the recording and the transcript by tomorrow.
    And we look forward in seeing to seeing you again in the future.
    Thank you very much.


    Mr. Breuer:      Thank you.

     

    Ms. Woldemichael: Thank you.


    Ms. Svirydzenka:     Thank you.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/03/05/tr-030525-sri-lanka-transcript-of-press-briefing-on-completion-of-3rd-rev-for-eff

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