NewzIntel.com

Category: Taxation

  • MIL-OSI Security: Par Funding Enforcer Sentenced to 11½ Years in Prison for RICO Conspiracy, Obstruction of Justice, and Retaliation

    Source: Federal Bureau of Investigation (FBI) State Crime News

    James LaForte Brutally Assaulted Receivership Attorney, Threatened Government Witnesses, Extorted Merchants

    PHILADELPHIA – United States Attorney David Metcalf announced that James LaForte, 48, of New York, New York, was sentenced today by United States District Court Judge Mark A. Kearney to 137 months’ imprisonment, followed by three years of supervised release to include 12 months’ home confinement, for crimes committed as part of a criminal enterprise that ran a fraudulent investment vehicle[1] known as Complete Business Solutions Group, Inc., d/b/a Par Funding (“Par Funding”) for a number of years, before it was taken over by a court-appointed receivership pursuant to a lawsuit filed by the U.S. Securities and Exchange Commission. LaForte was also ordered to pay $2,488,645 in restitution, representing the portion of investor proceeds that he illegally diverted from Par Funding’s numerous investors for his own use through sham merchant contracts and other self-dealing conduct.

    In February 2024, the defendant, his brother Joseph LaForte, Par Funding’s president and CEO, and Joseph Cole Barleta, Par Funding’s chief financial officer, were charged in an amended second superseding indictment with racketeering conspiracy and related crimes.

    James LaForte pleaded guilty in September 2024 to racketeering conspiracy, securities fraud, and extortionate collection of debt, as well as obstruction of justice, for his violent assault on one of the Par Funding receivership’s Philadelphia attorneys, and retaliation, for threatening several government witnesses.

    “James LaForte served as one of his brother’s enforcers,” said U.S. Attorney Metcalf. “He not only used threats of violence to collect on Par Funding’s debt, but stalked and assaulted an attorney, in retaliation for that man’s efforts to hold the LaForte family responsible for one of the largest financial frauds in Philadelphia’s history. As today’s sentence shows, this brand of brazen and violent lawbreaking simply won’t be tolerated in the Eastern District of Pennsylvania.”

    “Since its earliest days, the FBI has been dedicated to investigating complex financial crimes,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “James LaForte participated in a criminal enterprise driven by greed and sustained through threats and violence. The FBI is proud to stand with our partners in the pursuit of justice — disrupting these schemes and ensuring restitution for victims.”

    “The defendant in this case was brought to justice for his participation in a criminal enterprise that caused significant financial harm to numerous investors,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG will continue to work with our law enforcement partners to pursue those who commit such egregious crimes that threaten investors and the safety and soundness of our Nation’s financial institutions.”

    Joseph LaForte also pleaded guilty in September 2024 to racketeering conspiracy, securities fraud, and related crimes and is scheduled to be sentenced on March 26, 2025. Barleta pleaded guilty in October 2024 to one count of racketeering conspiracy and is scheduled to be sentenced on June 2, 2025.

    This case was investigated by the FBI, Internal Revenue Service – Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General, and prosecuted by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, and Eric Gill.

    The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the Par Funding criminal prosecution.

    [1] On January 21, 2025, the Court found the Par Funding fraud scheme caused an actual fraud loss of approximately $404,000,000, which it reduced to $288,395,088 after factoring in credit for collateral seized from Par Funding by federal authorities when the investigation became public in July 2020.

    MIL Security OSI –

  • MIL-OSI: Zoom debuts new agentic AI skills and agents for Zoom AI Companion

    Source: GlobeNewswire (MIL-OSI)

    • Zoom AI Companion expands agentic skills across the entire Zoom platform, using reasoning and memory to take action and orchestrate task execution, conversational self-service, custom agent creation, and more
    • More than 45 new innovations announced, including AI enhancements for Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom Docs, and Zoom Contact Center, help users get more done, do their best work, and strengthen relationships
    • New Zoom customer experience (CX) innovations include next-generation enhancements to Zoom Virtual Agent chat and the introduction of Virtual Agent for voice, AI intent routing capabilities, and Advanced Quality Management

    ORLANDO, Fla., March 17, 2025 (GLOBE NEWSWIRE) — Today Zoom Communications, Inc. (NASDAQ: ZM) unveiled agentic AI Companion capabilities, new Zoom AI Companion skills, and AI updates across its platform, including Zoom Meetings, Zoom Team Chat, Zoom Docs, Zoom Phone, Zoom Whiteboard, Zoom Contact Center, industry solutions, and more.

    “AI Companion is evolving from a personal assistant to being truly agentic, which signals a major leap forward in how AI can enhance productivity and collaboration at work,” said Smita Hashim, chief product officer at Zoom. “We’re delivering value for our customers through AI agents and agentic skills that solve real customer problems, helping them connect, collaborate, and get more done, all within the Zoom platform our users trust and love.”

    “We’ve been using Zoom AI Companion since it became available, and I’ve seen firsthand how it has transformed our academic and administrative operations,” said Steven Carroll, chief information officer at Saint Leo University. “This technology isn’t just about efficiency; it allows our employees to spend less time on manual tasks and more time on meaningful collaboration, and focus on what matters most: supporting our students’ educational journey.”

    AI Companion takes action with AI skills and agents

    Zoom is elevating AI Companion across its entire platform through AI agentic skills, agents, and models to deliver high-quality results, help users improve productivity, and strengthen relationships.

    • AI Companion will help users get more done by executing on their behalf and managing multi-step actions with the knowledge of which agents and skills to tap into using reasoning and memory to make decisions, solve complex problems, and learn over time, along with task action and orchestration to execute and complete tasks.
    • Additional new agentic skills include calendar management to help schedule meetings and find a time that works for everyone, clip generation for fast clip creation, writing assistance for advanced document creation, and more.
    • AI Companion will also extend to specialized agents that power Zoom Business Services. For customer self-service, Zoom Virtual Agent leverages memory and reasoning skills to deliver empathetic and contextual conversations and task action to resolve complex issues from start to finish. With AI Studio, users can effortlessly create and deploy customizable virtual agents (available in beta later this spring). Zoom Revenue Accelerator users will also be able to benefit from a specialized agent for sales in the coming months to help increase revenue through automated insights, personalized outreach and enhanced prospecting.
    • Coming soon, with Zoom’s open platform, users will be able to interact with third-party agents such as ServiceNow AI Agents and create their own custom agents with specific skill sets to address unique needs, such as streamlining sales RFPs or IT and HR service requests. AI Companion will know when to work with third-party and custom agents to take action and complete tasks.

    Custom AI Companion add-on will allow organizations to customize AI Companion with AI Studio by tailoring it to address their unique needs and drive efficiency.

    • Organizations will be able to create custom meeting templates and custom dictionaries with vocabulary unique to their business or industry, incorporate information from their own data sources, including compatible third-party applications, and use AI Studio to expand AI Companion’s knowledge and skills to help drive decisions and actions and complete tasks.
    • Users will have access to a digital personal AI coach and custom meeting summary templates that will allow users to structure meeting summaries for specific industry verticals or use cases, such as one-on-one meetings, customer intake, or brainstorming meetings.
    • Users will also have access to Custom Avatars for Zoom Clips to help scale video clip creation and avoid multiple takes by using a personalized AI-generated avatar to create clips with a user-provided script. Custom Avatars will be included in the Custom AI Companion add-on and will also be available for purchase separately.
    • The Custom AI Companion add-on is expected to be available for purchase in April for $12 per user per month (personal coach is expected to be available in June).

    As part of Zoom’s federated approach to AI, the Custom AI Companion add-on will incorporate Small Language Models (SLMs) alongside Zoom’s third-party LLMs to deliver industry-leading performance and cost-effectiveness for modern businesses. Zoom’s new SLMs are trained with extensive multilingual data, optimized for specific tasks to perform complex actions, and well-positioned to facilitate multi-agent collaboration.

    Get more done with AI Companion

    With new agentic skills, AI Companion can help users get more done, identify and execute tasks, manage meetings, and more. AI Companion’s agentic skills work across the platform to help reduce manual work so users can focus on what matters most.

    • Zoom Tasks with AI Companion will help users surface, complete, and manage tasks across Zoom Workplace by automatically detecting action items in meeting summaries, chats, and emails, and completing tasks like scheduling follow-up meetings or generating documents from meetings. Tasks will be available in a new tab within Zoom Workplace and can be embedded into a Zoom Doc, creating a central repository to track personal, team, and project tasks from creation to completion. Zoom Tasks is expected to launch at the end of March.
    • Meeting agendas with AI Companion, expected to launch in May, will help users stay organized by using templates or recent agendas to provide recommended content. Hosts will be able to add an agenda timer to sections to keep meetings on track and receive AI-generated live notes during the meeting. After the meeting, hosts will be able to easily share the summary and action items.
    • Live notes for Meetings and Phone, expected to launch in May, will provide real-time summaries during a meeting or phone call to help users catch up quickly, stay on track, focus on real-time topics connected to the agenda, and track updates live.
    • AI Companion for Zoom Phone can now generate voicemail summaries and support the Zoom for Microsoft Teams app. Zoom Phone calls within Microsoft Teams can generate AI Companion call summaries, and prioritize and extract tasks from voicemails.
    • A new voice recorder on the Zoom Workplace mobile app, expected to launch in late March, will transcribe, summarize, and capture action items with AI Companion and create high-quality recordings for in-person conversations, so users can connect without taking notes.
    • AI Companion for Workspace Reservation will show in-office workers when colleagues are expected to be in the office, recommend which days to go into the office based on scheduled meetings and their teammates’ scheduled in-office days, and have AI Companion proactively book a desk or a Zoom Room for them. These updates are expected to launch in May.

    AI Companion helps users do their best work and get better results

    Zoom Docs helps workers create high-quality content more efficiently by providing AI Companion writing assistance, as well as internal and external information search capabilities to help maximize productivity and streamline workflows.

    • Zoom Docs will have enhanced AI Companion capabilities with advanced references and queries that will be able to help a user create a writing plan based on the context, search internal and external information for references, and aggregate them into a high-quality business document based on user instructions. Advanced references and queries are expected to launch in June.
    • Users can prompt AI Companion to automatically create data tables, including from meeting summaries, so that content may be more easily digested and organized in a table format. AI Companion will be able to automatically label the columns so users can quickly see highlights and automate information like categorization and summarization for each record. This feature is expected to be available in July.

    Zoom also announced Zoom Drive, a central repository for meeting and productivity assets such as Zoom Docs, that will make it easier to find and access assets across Zoom Workplace. Zoom Drive is expected to launch in May.

    Zoom AI Companion continues to be included at no additional cost for customers with the paid services in their Zoom user accounts. Specialized AI Companion capabilities, custom agent configurations, and third-party agents may cost an additional fee or be subject to separate pricing.

    Visit the Zoom newsroom for more information on Zoom’s approach to agentic AI and Zoom Workplace enhancements.

    Strengthen relationships with Zoom Business Services

    The Zoom Business Services suite for marketing, customer care, and sales includes AI-first solutions that are tightly integrated with Zoom Workplace and designed to help customer-facing employees strengthen customer relationships and improve customer experiences.

    Zoom Customer Experience (CX)
    Zoom is bringing agentic skills to Zoom Contact Center with specialized AI agents to help revolutionize customer experiences, empower customer service agents, and enhance self-service interactions while maintaining the importance of human connections.

    • New generative AI advancements with agentic AI skills will introduce the next evolution of self-service. Zoom Virtual Agent will offer more natural language skills, handle complex queries, and execute tasks on behalf of customers. To extend these capabilities, Zoom Virtual Agent will be available for voice and chat channels (planned for qualified customer beta later this spring), offering a seamless, always-on experience.
    • AI-intent routing (expected to launch at the end of March), will intelligently route customers to the best-suited agent based on real-time intent detection.
    • With Advanced Quality Management, contact center teams will have access to Auto Quality Management, which will use AI to automatically score up to 100% of customer interactions, and Ask Quality Management, which will deliver a conversational interface for supervisors to directly query transcripts and uncover valuable insights. Advanced Quality Management is expected to launch in May.

    Visit the Zoom newsroom for an in-depth look at Zoom Business Services enhancements, including updates for Zoom Revenue Accelerator and Zoom Events.

    Zoom delivers powerful industry-specific solutions

    • Zoom Workplace for Frontline, expected to launch in April, is a purpose-built, AI Companion-based, mobile solution that gives frontline workers the on-shift communications and work management tools needed to be more connected and efficient in their daily tasks.
    • Zoom Workplace for Clinicians, expected to launch at the end of March, is designed to streamline clinical workflows. It enables doctors, nurses, and practitioners to dedicate more time to patient care and engagement rather than spending valuable time on documentation and administrative tasks. Zoom Workplace for Clinicians will be able to automatically generate clinical notes in the office or a virtual Zoom telehealth appointment so that physicians can focus on what matters most: their patients.
    • Zoom Workplace for Education will provide AI Companion-generated lecture summaries with supporting material that teachers can use to generate assignments and students can use to create study materials (expected to be available in May). Later this year, a live notes feature will enable students to add comments, reactions, and highlights to the live transcripts to engage with lecture content during and post class to further learning.
    • The Zoom hardware certification program is expanding solutions to support industry verticals beginning in April:
      • For education customers, Zoom will add select document cameras, which are intended to capture documents or objects on a table that can be shared in a Zoom virtual meeting or class, to its certified hardware portfolio.
      • For healthcare customers, Zoom will certify select cameras for use in patient rooms, enabling remote observation of patients.

    Some features and products may not be available for all regions and industry verticals.

    About Zoom
    Zoom’s mission is to provide an AI-first work platform for human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion that empowers teams to be more productive. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer experience teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at zoom.com.

    Zoom Public Relations
    Lacretia Nichols
    press@zoom.us

    The MIL Network –

  • MIL-OSI: Ethical Web AI Launches “AI Vault,” a Groundbreaking Enterprise SaaS Solution Designed to Protect Subscribers from Various AI Threats

    Source: GlobeNewswire (MIL-OSI)

    • Company Enters $1 Billion Marketplace Projected to Double by 2029
    • Advanced Beta Version is Being Demo’d to Major Prospective Partners
    • New Patent Filing, Company Infrastructure Build-out, Expected in 2Q-25

    NEW YORK, March 17, 2025 (GLOBE NEWSWIRE) — Ethical Web AI (d/b/a Bubblr Inc.) (OTCQB: BBLR), a leader in Generative AI innovation, today announced that it has launched its groundbreaking Generative AI enterprise security product – AI VaultTM. AI Vault is a groundbreaking, generative AI-powered enterprise security software-as-a-service (SaaS) solution built upon Ethical Web AI’s growing AI intellectual property estate, including 3 US patents that have been developed over the past two years.

    As a further enhancement of this product launch, Ethical Web AI has filed a new US patent (app.no. 19055968) titled Sensitive Data Protection for Generative AI. This patent describes a key process of dynamically detecting sensitive terms in Generative AI prompts.

    As was previously outlined in its February 5 news release as the Company’s next strategic initiative, this enterprise-level SaaS product is designed to protect enterprises from emerging cyber threats posed by uncontrolled employee use of ChatGPT, DeepSeek, and their peers while ensuring clients’ sensitive information remains protected and confidential.

    Leveraging advanced generative AI, AI Vault enhances threat detection, response, and prevention with real-time redaction of the subscribers’ critical data. It has been designed specifically for AWS customers to become a seamless component of a scalable, secure Gen AI Marketplace enterprise proposition.

    Twenty-seven per cent of enterprises have banned generative AI applications such as ChatGPT, according to the 2024 Cisco Data Privacy Study published in January 2025. The productivity, process optimization, and customer service benefits expected from widespread, growing commercial and enterprise AI adoption are being lost or threatened by poorly understood and inadequately managed risks.

    Analysts at The Business Research Company project the Generative AI-in-security addressable market to see exponential growth in the next few years – from $0.8 billion in 2024 to $2.04 billion in 2029 at a compound annual growth rate (CAGR) of 20.6%. Its report states, “The growth in the historical period can be attributed to the rise in cyber threats, the big data explosion, the development of generative models, new security challenges due to the vast number of connected devices, and real-time threat detection and response.”

    According to Fortune Business Insights, the broader, US generative AI market size was valued at $21.87 billion in 2023 and is projected to reach an estimated value of $220.27 billion by 2032, “driven by technological advancements, increased cloud adoption, demand for automation, and significant venture capital investments.”

    Commenting on the AI Vault launch, Chief Executive Officer Tom Symonds said, “We’re thrilled to introduce a uniquely smart and feature-rich security solution for cloud-based enterprise users of generative AI. With 27 per cent of enterprises banning their employees’ use of AI, we are offering a highly cost-effective, seamlessly integrated solution that we are confident will accelerate AI adoption globally by ensuring its privacy and safety.”

    “We are privately demonstrating AI Vault in beta to highly prospective partners. Going forward, as we are approaching commercialization, we expect to publish our detailed demo program in the next few weeks,” Mr. Symonds added. “We are making solid progress building out a deliberately lean but robust corporate infrastructure to include adding a Chief Revenue Officer, publishing a new investor presentation deck, and upgrading our website content for clients and shareholders.”

    How AI Vault Works
    AI Vault serves as a secure generative AI aggregator, ensuring that third-party content providers (such as OpenAI) cannot trace the origin of user prompts. This anonymization guarantees complete confidentiality for enterprise users. Further, its Automated Redaction Engine instantly redacts sensitive terms in communications and logs, ensuring compliance and confidentiality.

    Key AI Vault Features

    • AI-Driven Threat Intelligence: Uses generative AI to analyze vast datasets and identify patterns indicative of cyber threats.
    • Real-Time Anomaly Detection: Continuously monitors network activity to detect and neutralize threats before they cause harm.
    • Adaptive Security Framework: Evolves with emerging threats, ensuring long-term protection against AI-powered cyberattacks.

    Key AI Vault Benefits

    • Bundled AI Licenses with Secure Architecture
      Unlike other solutions that require businesses to procure separate generative AI licenses, AI Vault provides cost-effective pre-integrated AI licenses as part of its turnkey package.
    • Fully Encrypted Enterprise Deployment
      AI Vault operates within a dedicated AWS environment for each client, containerizing product components — including an AWS RDS instance that stores all AI-generated prompts and responses.
    • Advanced-Data Redaction & Contextual Sensitivity Detection
      AI Vault uniquely identifies explicitly defined sensitive terms and suggests additional potentially sensitive terms through LLM-based Named Entity Recognition (NER).
    • Patent-Protected Secure Workflow
      AI Vault executes a structured, end-to-end anonymized process.
    • Multimedia Integration and Real-Time Data Handling
      AI Vault provides rapid, turnkey, effortless deployment requiring no bespoke integration into existing infrastructure.
    • Cost-Effective and Scalable
      As an aggregated AI solution, AI Vault not only enhances security but also reduces generative AI costs by 25 per cent.

    About Ethical Web AI
    Ethical Web AI is an AI-based cybersecurity technology company currently commercializing its enterprise AI VaultTM solution. Built upon its powerful IP and patent estate, it is the first in a planned suite of SaaS products to champion a private, safe, and high-value AI experience.

    AI Vault initially targets the global enterprise marketplace with innovative solutions that protect businesses from advanced threats.

    Media and investor contact – tom.symonds@ethicalweb.ai

    Safe Harbor Statement
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management. They are subject to several uncertainties and risks that could significantly affect the Company’s current plans and expectations, future operations, and financial condition. The Company reserves the right to update or alter its forward-looking statements, whether due to new information, future events or otherwise.

    The MIL Network –

  • MIL-OSI China: China launches 8 new satellites

    Source: People’s Republic of China – State Council News

    JIUQUAN, March 17 — China on Monday launched a CERES-1 carrier rocket, placing eight satellites into space.

    The rocket blasted off at 4:07 p.m. (Beijing Time) from the Jiuquan Satellite Launch Center in northwest China and sent the Yunyao-1 55-60 satellites into the preset orbit.

    The mission also launched the AIRSAT 06 and 07 satellites.

    MIL OSI China News –

  • MIL-OSI Security: San Francisco Tow Company Operator Indicted in Scheme to Burn Competitors’ Tow Trucks Throughout the Bay Area

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Defendant Allegedly Conspired to Set Fire to Tow Trucks to Drive Business to His Towing Companies and to Retaliate Against Competitors

    SAN FRANCISCO – A federal grand jury has indicted Jose Vicente Badillo on one count of conspiracy to commit arson in connection with an alleged scheme to burn tow trucks throughout the San Francisco Bay Area in 2023.  Badillo made his initial appearance in federal district court this morning.

    According to the indictment unsealed earlier today, Badillo, 29, of San Francisco, conspired with others to set fire to at least six tow trucks on four occasions between April 2023 and October 2023.  Specifically, Badillo and his co-conspirators allegedly set fire to and damaged or destroyed (i) two tow trucks in San Francisco on April 4, 2023; (ii) one tow truck in San Francisco on April 29, 2023; (iii) one tow truck in East Palo Alto on July 25, 2023; and (iv) two tow trucks in San Francisco on Oct. 3, 2023.

    The indictment describes that the purpose of the conspiracy was, among other things, to drive more business to two Bay Area-based towing companies with which Badillo was associated—Auto Towing and Specialty Towing—by impeding the business prospects of competitor towing companies, and to retaliate against those same competitors for perceived wrongs.  Badillo allegedly orchestrated the conspiracy and then directed others to set fire to the targeted tow trucks.

    Badillo is next scheduled to appear in district court on March 20, 2025, at 10:30 a.m., before U.S. Magistrate Judge Sallie Kim for arraignment and identification of counsel.  Badillo is facing unrelated federal charges of money laundering and insurance fraud in two other pending cases.

    Acting United States Attorney Patrick D. Robbins, FBI Special Agent in Charge Sanjay Virmani, and IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Oakland Field Office Linda Nguyen made the announcement.

    An indictment merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Badillo faces a maximum sentence of 20 years in prison and a fine of $250,000.  Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Assistant U.S. Attorney Nicholas M. Parker is prosecuting the case with the assistance of Andy Ding and Laurie Worthen. The prosecution is the result of an investigation by the FBI and IRS-CI.  This investigation is assigned to the FBI SF Transnational Organized Crime Task Force, an interagency task force targeting sophisticated organized crime syndicates that engage in, among other offenses, violent crimes, extortion, fraud, arson, and drug trafficking.  The U.S. Attorney’s Office, the FBI, and IRS-CI thank the San Francisco Police Department for its substantial assistance and support in this investigation.

    Jose Vicente Badillo Indictment
     

    MIL Security OSI –

  • MIL-OSI Security: Former Baltimore City Council Candidate Convicted of Bank Fraud and False Statements in Connection with Scheme to Obtain Nearly $1.7 Million in Economic Injury Disaster Loans and Paycheck Protection Program Loans

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Henson used the fraudulently obtained funds for cosmetic surgery, extensive renovations to her home and the home of a family member, funding new business adventures—including a used car dealership that never opened—and a cryptocurrency she had created.

    Baltimore, Maryland – After a one-week trial, a federal jury found Nichelle Henson, age 38, of Baltimore, Maryland, guilty of making false statements and for bank fraud in connection with fraudulent applications Henson filed to obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in the names of multiple purported businesses that she had previously incorporated in the state of Maryland.  

    The trial conviction was announced by United States Attorney for the District of Maryland Kelly O. Hayes; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Brian D. Miller, Special Inspector General for Pandemic Recovery (SIGPR).

    According to the evidence presented at trial, Henson incorporated several businesses with the State of Maryland, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC, and Peace of Mind Services, Inc.  The Defendant opened bank accounts in the names of some of her businesses and obtained Tax Identification Numbers (TINs) from the Internal Revenue Service (IRS) for the businesses.

    In 2020 and 2021, she submitted six fraudulent EIDL applications to the SBA for her various businesses that contained false information concerning each business’s gross receipts, costs of goods sold, and number of employees.  At the time of the submissions, none of the businesses were operating, and none of the businesses had any employees.  As a result of the applications, Henson received $18,000 in United States Treasury funds from the SBA.  

    Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the PPP, administered through the Small Business Administration (SBA).  The SBA also offered an EIDL and/or an EIDL advance to help businesses meet their financial obligations.  An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.

    During this same period, Henson submitted 12 fraudulent PPP loan applications to three SBA-approved lenders for her various purported businesses.  Each of these applications contained false information about each business’s number of employees and average monthly payroll, and each was supported by purported IRS tax forms listing employees and wages that were, in fact, never filed with the IRS. 

    Between April 30, 2020 and June 29, 2020, Henson submitted six PPP applications for her various businesses.  One of these businesses was called Nichelle Henson Campaign (the “Campaign”), an entity that was meant to fund Henson’s run for Baltimore City Council.  However, at the time of the submission of the application for the Campaign on May 10, 2020, Henson had withdrawn her candidacy – approximately six months earlier, on November 19, 2019.

    Another entity was called Crowns Construction, a purported construction business located in Baltimore City.  This business did not exist in any capacity, and the address used on the PPP loan application was nothing more than a vacant lot.  In support of the application for this business, Henson included a fabricated Baltimore Gas & Electric that purported to be for Crowns Construction but was in fact a bill belonging to a neighbor of Henson’s that she had scanned and then doctored using a PDF editing tool.  

    Henson ultimately obtained $998,590 as a result of these six fraudulent applications. On January 19, 2021, Henson submitted six more fraudulent PPP loan applications—this time to M&T Bank—for each of her six purported businesses.  Each of these applications contained lies about the existence of each business, the number of their employees, and payroll paid.  And each application was supported by fabricated tax documents never filed with the IRS.  M&T funded five of the six loans, transferring $676,250 in PPP funds to Henson. Shortly thereafter Henson went to an M&T branch in Baltimore and withdrew $5,000 cash from each of her five M&T accounts where the PPP funds flowed.  M&T thereafter froze Henson’s accounts and notified law enforcement about the suspected fraud.

    Henson used the EIDL and PPP loan funds to support businesses other than the borrowers, such as Wyse Rides, a used car business Henson attempted to open in Dundalk, Maryland.  The business never opened. Henson used the PPP funds she received in multiple ways impermissible under the PPP, including for cosmetic surgery, for extensive renovations to her home and a family member’s home, to pay a year’s rent for her personal home, to pay a year’s rent for a new business venture, and to fund other new business ventures, including a used car dealership—which never opened—and to create a cryptocurrency called Subina Coin and, relatedly, to fund an entity called the “Adageyhdi Indian Nation.”

    In total, Henson obtained $1,694,451 in connection with her scheme to defraud.  

    Henson faces a maximum possible sentence of 30 years in federal prison for each count of Bank Fraud, and a maximum possible sentence of 5 years in prison for each count of False Statements.  U.S. District Judge Matthew J. Maddox has scheduled sentencing for August 5, 2025 at 10:00 a.m.  She will be required to pay restitution to the SBA and the victim financial institutions.  

    The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 

    For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

    United States Attorney Kelly O. Hayes commended the FBI and the Office of the Special Inspector General for Pandemic Recovery, which conducted the investigation on behalf of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, for their work in the investigation. Ms. Hayes thanked Assistant U.S. Attorneys Paul Riley and Joseph Wenner, who are prosecuting the federal case, and Paralegal Specialist Julie Jarman. 

    For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Seven Detroit Men Charged for Drug Distribution, Illegal Possession of Weapons, and Money Laundering

    Source: Federal Bureau of Investigation (FBI) State Crime News

    DETROIT – Seven men have been charged in a forty-three-count indictment alleging conspiracy to distribute controlled substances, weapons charges, and money laundering, Acting United States Attorney Julie A. Beck announced.

    Beck was joined in the announcement by Chevoryea Gibson, Special Agent in Charge of the Federal Bureau of Investigations (FBI), Detroit Field Office, and Charles E. Miller, Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS-CI), Detroit Field Office.

    Tary Holcomb (age 52), Maurice Hill (56), James Thomas (47), Curtis Weathers (52), Jason Ford, Conrad Taylor (48), and Shantonio Brooks (49), all of Detroit, were charged with conspiracy to distribute and possess with the intent to distribute a myriad of controlled substances, including cocaine, crack cocaine, heroin, and fentanyl. If convicted of the conspiracy charge, each of the men faces a mandatory prison sentence of at least 10 years. Holcomb and Thomas each face additional charges for possessing firearms in furtherance of drug trafficking crimes, while Holcomb also faces charges for being a felon in possession of a firearm, and for money laundering activities dating back to January 2023.

    This case is assigned to Judge Edmunds of the United States District Court for the Eastern District of Michigan.

    An indictment is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

    “This case is an example of our zealous commitment to identify and dismantle local drug trafficking organizations that wreak havoc in our community by distributing harmful substances, illegally amassing weapons, and laundering illicit proceeds. This activity puts far too many at risk, and it will not be tolerated in our district,” Acting U.S. Attorney Beck said.

    “The indictment of seven men, accused of conspiring to distribute drugs, illegally possess firearms, and engage in money laundering, was successfully halted due to the tireless and meticulous investigative efforts by our dedicated team at the FBI Detroit Field Office, in close collaboration with our law enforcement partners at the IRS Criminal Investigation. This operation underscores our commitment to protecting the safety of Michigan’s communities,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI is unwavering in its mission to investigate and hold accountable those who threaten the well-being and security of our residents, ensuring a safer Michigan for all.”

    “Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities, such as the drug trafficking and money laundering charges levied today,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. “CI is committed to enforcing these laws and following the money, wherever it leads.”

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    This case was investigated by agents from FBI’s Detroit Organized Crime Squad and IRS-CI along with the assistance of U.S. Customs and Border Protection and is being prosecuted by Assistant U.S. Attorney Erin Ramamurthy. 

    MIL Security OSI –

  • MIL-OSI Security: Great Falls businessman sentenced for tax and investment fraud

    Source: Office of United States Attorneys

    ALEXANDRIA, Va. – A Great Falls man was sentenced today to six years and six months in prison for tax crimes and his wire fraud scheme.

    According to court documents and statements made in court, Rick Tariq Rahim, 56, owned and operated several businesses, including laser tag facilities and an Amazon reseller. From 2015 to 2021, Rahim did not pay the IRS the taxes withheld from his employees’ paychecks or file the required quarterly employment tax returns reporting those withholdings.

    Between October 2010 and October 2012, Rahim filed two personal income tax returns on which he reported owing substantial taxes, but did not pay all the taxes due. When the IRS attempted to collect the unpaid taxes, Rahim submitted a false statement that omitted valuable assets he owned, including a helicopter, a Bentley, a Lamborghini, and real estate in Great Falls. Approximately two weeks later, Rahim transferred ownership of the Great Falls property to his wife. He also paid personal expenses from his business bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. Rahim withdrew more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank. Rahim has not filed a personal income tax return since 2012 despite earning more than $34 million in gross income.

    In total, Rahim caused a loss to the IRS of at least $4.4 million.

    Rahim also defrauded customers who invested using his automated trading bots and by “copying” Rahim’s supposed trading activities that he posted to Discord. He marketed his products on websites named BotsforWealth, TradeAutomation, ProChartSignals, OptionCopier, CopyAndWin, SnipeAlgo, and QQQtrade. Rahim charged customers a subscription fee to access his bots and other software, and to copy his supposed trades. Rahim also offered a “lifetime membership” through which customers received access to Rahim’s private Discord channel, some of his products, and his “in-office” trading days. Rahim personally traded stocks for at least two individuals, claiming “We’ll hit home runs and make $500k+ per day very very often.” Instead, Rahim lost over $300,000 of his clients’ funds in eight months.

    Rahim induced customers to subscribe to his products by using social media tools, including TikTok, YouTube, and Discord. He also sought to induce customers by claiming he was extremely wealthy, boasting about trading millions of dollars and posting about his large home, pool, and luxury cars, including his Lamborghini. He posted false information to his websites and to his social media accounts claiming to “beat the stock market every day” and promising extreme profit margins. His claim of regularly beating the market was exaggerated. In reality, he did not post his trades that lost money. In fact, Rahim realized over $500,000 in losses from February 2021 through December 2022, and did not earn millions in the market during this time as he had claimed. As part of his fraud scheme, Rahim also created at least 20 Discord user profiles where he posted emojis, likes, and symbols showing agreement and excitement regarding Rahim’s posts. Rahim earned at least $1,397,000 in subscription fees during his schemes.

    In addition to Rahim’s prison sentence, he agreed to forfeiture of over $1.3 million and must pay restitution to the IRS and to his investment fraud victims.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, made the announcement.

    IRS Criminal Investigation investigated Rahim’s tax fraud and FBI investigated his investment fraud. The case was consolidated for sentencing.

    Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia and Trial Attorneys William Montague and Ashley Stein of the Tax Division prosecuted Rahim for his tax fraud. Assistant U.S. Attorney Shartar prosecuted Rahim for his investment fraud.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:23-cr-173 (Rahim’s Tax Fraud Case) and 1:24-cr-179 (Rahim’s Investment Fraud Case).

    MIL Security OSI –

  • MIL-OSI Security: Former Bookkeeper Accused of Embezzling At Least $400,000 From Church

    Source: Office of United States Attorneys

    ST. LOUIS – The former parish secretary and bookkeeper of a DeSoto, Missouri church turned herself in Friday to face an accusation that she embezzled at least $400,000.

    Corie M. Boyer, 49, of Jefferson County, Missouri, was indicted March 6 in U.S. District Court in St. Louis on four counts of wire fraud and two counts of money laundering. She pleaded not guilty in court Friday afternoon.

    The indictment says Boyer was responsible for maintaining the parish’s books and records, organizing certain parish fundraisers and assisting in the collection and counting of the weekly offertory. From at least January of 2017 through March of 2024, Boyer stole at least $400,000 in parish funds in multiple ways, the indictment says. She used parish funds to pay her personal credit card bills and used parish credit cards for personal expenses including airfare for herself and relatives, cruises, college tuition payments, shopping, taxes and rent, the indictment says. She also wrote checks to herself and stole cash from the offertory, and she covered up her thefts by falsifying parish records, the indictment says.

    Wire fraud is punishable by up to 20 years in prison, a $250,000 fine or both. Money laundering is punishable by up to 10 years in prison and the same fine.

    A charge set forth in an indictment is merely an accusation and does not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

    The FBI and IRS – Criminal Investigation investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI: Nevada Governor Lombardo Applauds FHLBank San Francisco’s $10 Million Affordable Housing Investment in the Silver State

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, March 17, 2025 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) is deepening its commitment to increasing access to affordable housing and homeownership by investing in Nevada Housing Division Mortgage Revenue Bonds. Nevada Governor Joe Lombardo celebrates FHLBank San Francisco’s investment in the state.

    “Attainable homeownership for all Nevadans is one of my highest priorities and we can’t do this alone,” said Governor Lombardo. “The partnership and commitment of FHLBank San Francisco through this investment will give stability to many of Nevada’s essential workers.”

    This $10 million investment strengthens FHLBank San Francisco’s efforts to support low- and moderate-income homebuyers in the state of Nevada, which include downpayment assistance grant programs to support homebuyers.

    “Our investment in Nevada Housing Division Mortgage Revenue Bonds allows us to reinforce our commitment to safe, affordable homes in Nevada while also delivering on our mission to provide reliable, low-cost liquidity and community investment resources to our member financial institutions,” said Joe Amato, interim president and CEO of FHLBank San Francisco. “By working together with the Nevada Housing Division, we can strengthen communities in Nevada, foster economic growth and create a more vibrant and resilient future for all.”

    Supporting Home Affordability in Nevada

    Nevada has a severe shortage of affordable homes. The demand for more housing supply in the state has made it more difficult for Nevada residents to keep up with the housing market – both in buying and renting. The Nevada Housing Division Mortgage Revenue Bonds are highly rated investment securities (AA+ rating from S&P) backed by single-family mortgage-backed securities (MBS) that facilitate homeownership by supporting loans designed specifically for Nevada households aspiring to own a home.

    “The Federal Home Loan Bank of San Francisco is uniquely positioned to address affordability issues for homebuyers in Nevada,” said Stephen Aichroth, Administrator of the Nevada Housing Division. “We thank the Bank for their confidence in the Nevada Housing Division and their commitment to affordable homeownership for Nevadans.”

    FHLBank San Francisco is dedicated to supporting housing initiatives throughout its three-state region of Arizona, California, and Nevada. Since the Affordable Housing Program (AHP) was created in 1990, FHLBank San Francisco has awarded over $1.38 billion in AHP grants to support the construction, rehabilitation, or purchase of over 155,000 homes affordable to lower-income households, including $61.8 million in 2024 alone. Together, the 11 regional FHLBanks that make up the Federal Home Loan Bank System are one of the largest privately capitalized sources of grant funding for affordable housing in the United States.

    About the Nevada Housing Division

    The Nevada Housing Division, a division of the Department of Business and Industry, was created by the Nevada Legislature in 1975, with a mission to provide affordable housing opportunities and improve the quality of life for Nevada residents. They connect Nevadans with homes by providing financing to developers to build affordable housing, innovative mortgage solutions and down payment assistance programs and making homes more energy efficient, thereby lowering utility expenses. To learn more, visit http://housing.nv.gov. 

    About the Federal Home Loan Bank of San Francisco

    The Federal Home Loan Bank of San Francisco is a member-owned cooperative supporting local lenders in Arizona, California, and Nevada to build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient. To learn more, visit www.fhlbsf.com.

    The MIL Network –

  • MIL-OSI Asia-Pac: List of Outcomes: Official Visit of Prime Minister of New Zealand, Rt. Hon Christopher Luxon, to India

    Source: Government of India

    Posted On: 17 MAR 2025 2:27PM by PIB Delhi

    Announcements:

    1. Launch of negotiations between India and New Zealand on a Free Trade Agreement (FTA);

    2. Launch of negotiations between India and New Zealand on an arrangement facilitating the mobility of professionals and skilled workers;

    3. New Zealand joins the Indo-Pacific Oceans’ Initiative (IPOI);

    4. New Zealand becomes member of the Coalition for Disaster Resilient Infrastructure (CDRI)

    Bilateral Documents:

    1. Joint Statement

    2. Memorandum of Understanding on Defence Cooperation between the Ministry of Defence of India and the New Zealand Ministry of Defence;

    3. Authorized Economic Operator – Mutual Recognition Agreement (AEO-MRA) between the Central Board of Indirect Taxes and Customs of India (CBIC) and the New Zealand Customs Service;

    4. Memorandum of Cooperation on Horticulture between the Ministry of Agriculture and Farmers’ Welfare of India and the Ministry for Primary Industries of New Zealand;

    5. Letter of Intent on Forestry between the Ministry of Environment, Forest, and Climate Change of India and the Ministry for Primary Industries of New Zealand;

    6. Education Cooperation Agreement between the Ministry of Education of the Republic of India and the Ministry of Education of New Zealand; and

    7. Memorandum of Cooperation in Sports between the Ministry of Youth Affairs & Sports of the Government of India and the Sport New Zealand of the Government of New Zealand

     

    ***

    MJPS/ST

    (Release ID: 2111745) Visitor Counter : 114

    MIL OSI Asia Pacific News –

  • MIL-OSI United Kingdom: Supporting people with Council Tax debt

    Source: Scottish Government

    Citizens Advice Scotland project expanded.

    People struggling with Council Tax arrears will have access to enhanced advice through the expansion of a Citizens Advice Scotland project.

    Backed by an additional £2.2 million in Scottish Government funding, the project provides tailored support to affected households and works with local authorities to support good practice in Council Tax debt collection.

    The project has already been delivered in nine local authority areas, where it has helped to promote dignified and empathetic approach to debt collection and supported more than 1,600 people with advice on Council Tax issues. This additional funding will allow the project to be extended across the whole country.

    Housing Minister Paul McLennan said:

    “Any type of debt, including council tax debt, puts pressure on households and can cause real difficulties for family finances. Empathy and dignity must be at the heart of debt support.

    “This project has already made a big difference to the way debts are collected in the local authorities where it is in place, including supporting people who cannot access digital technology, making connections with mental health services where needed and encouraging people to seek advice early.

    “By helping families manage debts, this project will help us deliver on our driving mission of eradicating child poverty. Other steps we are taking to support this include investing £6.9 billion in social security for the year ahead, £37 million to deliver the expand the free school meals programme, and continuing to put more money in families pockets through the Scottish Child Payment.” 

    Background

    Advice and support are available for people experiencing problem debt – Debt and money – Cost of Living Support Scotland

    MIL OSI United Kingdom –

  • MIL-OSI: Diversified Achieves Strong Final Year-End 2024 Results, Delivers on Capital Allocation Promises, and Introduces 2025 Combined Company Outlook

    Source: GlobeNewswire (MIL-OSI)

    2024 Achievements Position Diversified on a Meaningful Path Forward as a Stronger and Larger Company

    Executed Approximately $2 Billion of Acquisitions in an Advantageous Pricing Environment

    Third year of Consistent Operating Costs Despite Broader Industry and Inflationary Pressures

    Maverick Integration Anticipated to Provide Meaningful Financial and Operational Benefits to Drive Free Cash Flow Acceleration

    Created a PDP Solution for Upstream Peers to Facilitate Operated Acquisitions with an Undeveloped Inventory Focus

    BIRMINGHAM, Ala., March 17, 2025 (GLOBE NEWSWIRE) — Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) is pleased to announce its operational and final audited results for the year ended December 31, 2024.

    Diversified remains a differentiated key player in acquiring and building a portfolio of assets through value-accretive transactions while simultaneously unlocking hidden value through its unique operational framework, strategic development partnerships, and growing adjacent business segments, including coal mine methane (CMM), energy marketing and well-retirement. By completing over $4.0 billion of acquisitions since its public listing in 2017, Diversified has built a large-scale integration and operating company that remains focused on delivering de-risked, reliable cash flow for its shareholders. With the combination of maturing assets and M&A activity leading to growth-oriented E&P’s recycling capital through divestment, there remains an ample opportunity set for Diversified’s continued growth. Additionally, with most upstream acquisitions today focusing on increasing undeveloped inventory, Diversified provides a creative and actionable solution as the PDP purchasing partner for those E&P’s that only value inventory.

    Only Publicly Traded Champion of the PDP Subsector with Unique Strategic Advantages

    • Large Operational Scale: Multiple geographies in core basins including Western Anadarko (largest producer), Permian, Appalachia, Barnett and Ark-La-Tex with commodity product diversification
    • Vertical Integration: In-house marketing, extensive midstream network, wholly-owned processing infrastructure, and a well retirement business segment
    • Leading Technology Platform: 100% cloud architecture, supporting well level data capture, information for actionable production optimization, and real-time monitoring which mitigates production downtime
    • Beneficial Financing Solution: Demonstrated ability to access numerous capital solutions, including investment grade, low-cost Asset Backed Securities, commercial banking facilities and equity investment partners
    • Flexible Capital Allocation: shareholder returns-focused model prioritizing Free Cash Flow for systematic debt reduction, fixed dividend payments, opportunistic share repurchases, and accretive acquisitions
    • Proven Process to Capture Synergies: established integration playbook and sophisticated corporate infrastructure provides considerable expense savings and unlocks sustainable value

    Delivering Consistent and Reliable Results in 2024        

    • Delivered average net daily production: 791 MMcfepd (132 MBoepd)
      • December exit rate of 864 MMcfepd (144 MBoepd)
    • Year end 2024 reserves of 4.5 Tcfe (747 MMBoe; PV10 of $3.3 billion(b))
    • Total Revenue, inclusive of hedges of $946 million(e), net of $151 million in commodity cash hedge receipts that supplemented Total Revenue of $795 million
    • Operating Cash Flow of $346 million; Net loss of $87 million, inclusive of $141 million tax-effected, non-cash unsettled derivative fair value adjustments
    • Adjusted EBITDA of $472 million(c); Adjusted Free Cash Flow of $211 million(d)
      • 2024 Adjusted EBITDA Margin of 51%(c)
      • 2024 Adjusted Operating Cost per unit of $1.70/Mcfe ($10.22/Boe)

    Achieving Expectations

    • Recommend a final quarterly dividend of $0.29 per share
    • Generated $49 million of cash proceeds through land sales and Coal Mine Methane Revenues
    • Retired over $200 million in debt principal through amortizing debt payments
    • Returned $105 million to shareholders, including $21 million in share buybacks(h)
    • Completed $585 million (gross) in strategic and bolt-on acquisitions during 2024
    • Retired 202 Diversified wells in Appalachia, marking third consecutive year to exceed 200 wells
    • OGMP Gold Standard and MSCI AA Rating for third and second consecutive year, respectively
    • Decreased Scope 1 methane intensity to 0.7 MT CO2e per MMcfe, a 13% reduction from 2023

    Powerful Step Forward

    • Closed transformative $1.3 billion acquisition of Maverick Natural Resources (“Maverick”)
      • Largest Producer in the Western Anadarko Basin (WAB)
      • Entry into the Permian basin
      • Expecting to achieve over $50 million in annual synergies by year-end 2025
    • Closed the accretive bolt-on acquisition of assets from Summit Natural Resources
      • Anticipate over 300% increase in cash flow from CMM environmental credit sales in the next 24 months
    • Developed a unique partnership to create an innovative, reliable, net-zero data center power solution
    • Enhancing free cash flow growth in 2025 by advantageously added natural gas hedges (related to ABS & recent acquisitions) and planning approximately $40 million from the divestiture of undeveloped leasehold during the first half of 2025

    CEO Rusty Hutson, Jr. commented:

    “Our over 1,600 women and men of Diversified remain the driving force behind our strong operational and financial performance in 2024. Whether it’s natural gas to power the technology of the future or the everyday needs of families and businesses across our operating region, Diversified provides the reliable and sustainable energy needed, and we continue to invest in growing our business while expanding our opportunity set of cash flow generation through verticals in a variety of end markets.

    We have built a Company that remains highly focused on long-term value creation through the growth of our platform and our ability to leverage vertical integration and scale to operate a structurally and dependably higher-margin business that delivers de-risked, consistent cash flow. Our focused strategy, disciplined leadership team, sound operating practices, and the strong demand for natural gas provide us with momentum as we begin the year and the confidence to achieve our full-year 2025 expectations while executing against our capital allocation strategy. We are starting the year in a position of strength as a bigger, better business, and there has never been a more exciting time for our Company and the energy industry. We feel privileged to be at the heart of the energy renaissance as the Right Company at the Right Time to help provide essential energy needs.”

    Combined Company 2025 Outlook

    Following the recently completed acquisition of Maverick, Diversified expects to realize significant operational synergies associated with a larger, consolidated position in Oklahoma and the ability to improve the overall cost structure of the Maverick Natural Resources assets while continuing to prioritize returns and Free Cash Flow generation.

    The following outlook incorporates a nine-month contribution from the recently acquired Maverick.

      2025 Guidance
    Total Production (Mmcfe/d) 1,050 to 1,100
    % Liquids ~25%
    % Natural Gas ~75%
    Total Capital Expenditures (millions) $165 to $185
    Adj. EBITDA1 (millions) $825 to $875
    Adj. Free Cash Flow1 (millions) ~$420
    Leverage Target 2.0x to 2.5x
    Combined Company Synergies (millions) >$50
    1 Includes the value of anticipated cash proceeds for 2025 land sales
     

    Posting of 2024 Annual Report and Notice of Annual General Meeting

    Diversified has published to the Company’s website its 2024 Annual Report and Notice of AGM, along with the form of proxy for the AGM. These documents can be viewed or downloaded from Diversified’s website at https://ir.div.energy/financial-info.

    The Company has also provided copies of these documents to the National Storage Mechanism that, in accordance with UK Listing Rule 6.4.1R, will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

    Annual General Meeting Arrangements

    The Company’s AGM will be held on April 9, 2025 at 1:00pm BST (8:00am EDT) at the offices of FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A 4HD.

    Presentation and Webcast

    DEC will host a conference call today at 12:30 pm GMT (8:30am EDT) to discuss these results. The conference call details are as follows:

    A corporate presentation will be posted to the Company’s website before the conference call. The presentation can be found at https://ir.div.energy/presentations.

    Footnotes:

    (a) Corporate decline rate of ~10% calculated as the change in average daily production for the month of December 2023 (775 MMcfepd), adjusted for the impact of acquisitions and divestitures occurring during the 2024 calendar year, to the average daily production for the month of December 2024.
    (b) Based on the Company’s year-end PDP reserves and using 10-year NYMEX strip, as at December 31, 2024.
    (c) Adjusted EBITDA represents earnings before interest, taxes, depletion, and amortization, and includes adjustments for items that are not comparable period-over-period; As presented, Adjusted EBITDA includes the impact of the accounting basis for land sales; Adjusted EBITDA Margin represents Adjusted EBITDA (excluding the adjustment for the accounting basis on land sales) as a percent of Total Revenue, Inclusive of Settled Hedges; For purposes of comparability, Adjusted EBITDA Margin excludes Other Revenue of $16 million and Lease Operating Expense of $19 million in 2024 associated with Diversified’s wholly owned plugging subsidiary, Next LVL Energy. For more information, please refer to Non-IFRS Measures, below.
    (d) Free Cash Flow represents net cash provided by operating activities less expenditures on natural gas and oil properties and equipment and cash paid for interest; As used herein, Adjusted Free Cash Flow represents Free Cash Flow, plus cash proceeds from undeveloped acreage sales; For more information, please refer to Non-IFRS Measures, below.
    (e) Calculated as total revenue recorded for the period, inclusive of the impact of derivatives settled in cash. For more information, please refer to Non-IFRS Measures, below.
    (f) Calculated as the availability on the Company’s Revolving Credit Facility (“SLL”) and cash on hand (unrestricted)of December 31, 2024; Does not include the impact of Letters of Credit.
    (g) Net Debt-to-Adjusted EBITDA, or “Leverage” or “Leverage Ratio,” is measured as Net Debt divided by Pro Forma Adjusted EBITDA; Pro forma adjusted EBITDA includes adjustments for the year ended December 31, 2024 for the annualized impact of acquisitions completed during the year. Net Debt calculated as of December 31, 2024 and includes total debt as recognized on the balance sheet, less cash and restricted cash; Total debt includes the Company’s borrowings under the Company’s Revolving Credit Facility (“SLL”) and borrowings under or issuances of, as applicable, the Company’s subsidiaries’ securitization facilities. For more information, please refer to Non-IFRS Measures, below.
       

    For Company-specific items, refer also to the Glossary of Terms and/or Alternative Performance Measures found in Diversified’s 2024 Annual Report

    For further information, please contact:  
    Diversified Energy Company PLC +1 973 856 2757
    Doug Kris dkris@dgoc.com
    www.div.energy  
       
    FTI Consulting dec@fticonsulting.com
    U.S. & UK Financial Public Relations  
       

    About Diversified Energy Company PLC

    Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.

    Important Notices

    This announcement may contain certain forward-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of the Company, and its wholly owned subsidiaries (“the Group”) following the Maverick Acquisition. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “will”, “seek”, “continue”, “aim”, “target”, “projected”, “plan”, “goal”, “achieve”, “outlook” and words of similar meaning, reflect the Company’s beliefs and expectations and are based on numerous assumptions regarding the Company’s present and future business strategies and the environment the Company and the Group will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company or the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company’s or the Group’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the Company’s or the Group’s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company or the Group operate or in economic or technological trends or conditions, and the Company’s or Group’s ability to realize expected benefits of the Maverick acquisition. Past performance of the Company cannot be relied on as a guide to future performance. As a result, you are cautioned not to place undue reliance on such forward-looking statements. The list above is not exhaustive and there are other factors that may cause the Company’s or the Group’s actual results to differ materially from the forward-looking statements contained in this announcement, including the risk factors described in the “Risk Factors” section in the Company’s Annual Report and Form 20-F for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission.

    Forward-looking statements speak only as of their date and neither the Company, nor the Group nor any of its respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur. No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that the financial performance of the Company for the current or future financial years would necessarily match or exceed the historical published for the Company.

    The contents of this announcement are not to be construed as legal, business or tax advice. Each shareholder should consult its own legal adviser, financial adviser or tax adviser for legal, financial or tax advice respectively.

    Percentages in tables have been rounded and accordingly may not add up to 100 per cent. Certain financial data have also been rounded. As a result of this rounding, the totals of data presented in this announcement may vary slightly from the actual arithmetic totals of such data.

    Use of Non-IFRS Measures

    Certain key operating metrics that are not defined under IFRS (alternative performance measures) are included in this announcement. These non-IFRS measures are used by us to monitor the underlying business performance of the Company from period to period and to facilitate comparison with our peers. Since not all companies calculate these or other non-IFRS metrics in the same way, the manner in which we have chosen to calculate the non-IFRS metrics presented herein may not be compatible with similarly defined terms used by other companies. The non-IFRS metrics should not be considered in isolation of, or viewed as substitutes for, the financial information prepared in accordance with IFRS. Certain of the key operating metrics are based on information derived from our regularly maintained records and accounting and operating systems.

    Non-IFRS Disclosures

    Adjusted EBITDA

    As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation, and amortization. Adjusted EBITDA further adjusts for items that are not comparable period-over-period, including accretion of asset retirement obligations, other (income) expense, loss on joint and working interest owners receivable, (gain) loss on bargain purchases, (gain) loss on fair value adjustments of unsettled financial instruments, (gain) loss on natural gas and oil property and equipment, costs associated with acquisitions, other adjusting costs, non-cash equity compensation, (gain) loss on foreign currency hedge, net (gain) loss on interest rate swaps and other similar items.

    Adjusted EBITDA should not be considered in isolation or as a substitute for operating profit (loss), net income (loss), or cash flows provided by (used in) operating, investing, and financing activities. However, we believe this measure is useful to investors in evaluating our financial performance because it (1) is widely used by investors in the natural gas and oil industry as an indicator of underlying business performance; (2) helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement; (3) is used in the calculation of a key metric in one of our Credit Facility financial covenants; and (4) is used by us as a performance measure in determining executive compensation. When evaluating this measure, we believe investors also commonly find it useful to assess this metric as a percentage of our total revenue, inclusive of settled hedges, which we refer to as adjusted EBITDA margin.

      Year Ended
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Net income (loss) $ (87,001 ) $ 759,701   $ (620,598 )
    Finance costs   137,643     134,166     100,799  
    Accretion of asset retirement obligations   30,868     26,926     27,569  
    Other (income) expense(a)   (1,257 )   (385 )   (269 )
    Income tax (benefit) expense   (136,951 )   240,643     (178,904 )
    Depreciation, depletion and amortization   256,484     224,546     222,257  
    (Gain) loss on bargain purchases   —     —     (4,447 )
    (Gain) loss on fair value adjustments of unsettled financial instruments   189,030     (905,695 )   861,457  
    (Gain) loss on natural gas and oil properties and equipment(b)   15,308     4,014     93  
    (Gain) loss on sale of equity interest   7,375     (18,440 )   —  
    Unrealized (gain) loss on investment   4,013     (4,610 )   —  
    Impairment of proved properties(c)   —     41,616     —  
    Costs associated with acquisitions   11,573     16,775     15,545  
    Other adjusting costs(d)   22,375     17,794     69,967  
    Loss on early retirement of debt   14,753     —     —  
    Non-cash equity compensation   8,286     6,494     8,051  
    (Gain) loss on foreign currency hedge   —     521     —  
    (Gain) loss on interest rate swap   (190 )   2,722     1,434  
    Total adjustments $ 559,310   $ (212,913 ) $ 1,123,552  
    Adjusted EBITDA $ 472,309   $ 546,788   $ 502,954  
    Pro forma adjusted EBITDA(e) $ 548,570   $ 553,252   $ 574,414  
    1. Excludes $1 million in dividend distributions received for our investment in DP Lion Equity Holdco during the year ended December 31, 2024.
    2. Excludes $27 million, $24 million and $2 million in cash proceeds received for leasehold sales during the years ended December 31, 2024, 2023 and 2022, respectively, less $14 million and $4 million of basis in leasehold sales for the years ended December 31, 2024 and 2023, respectively.
    3. For the year ended December 31, 2023, the Group determined the carrying amounts of certain proved properties within two fields were not recoverable from future cash flows, and therefore, were impaired.
    4. Other adjusting costs for the year ended December 31, 2024, were primarily associated with legal and professional fees related to the U.S. listing, legal fees for certain litigation, and expenses associated with unused firm transportation agreements. For the year ended December 31, 2023, these costs were primarily related to legal and professional fees for the U.S. listing, legal fees for certain litigation, and expenses for unused firm transportation agreements. For the year ended December 31, 2022, these costs mainly included $28 million in contract terminations, which enabled the Group to secure more favorable future pricing, and $31 million in deal breakage and/or sourcing costs for acquisitions.
    5. Includes adjustments for the year ended December 31, 2024 for the Oaktree, Crescent Pass, and East Texas II acquisitions to pro forma their results for the full twelve months of operations. Similar adjustments were made for the year ended December 31, 2023 for the Tanos II Acquisition, as well as for the year ended December 31, 2022 for the East Texas I and ConocoPhillips acquisitions.

    Total Revenue, Inclusive of Hedges and Adjusted EBITDA Margin

    As used herein, total revenue, inclusive of settled hedges, accounts for the impact of derivatives settled in cash. We believe that total revenue, inclusive of settled hedges, is a useful measure because it enables investors to discern our realized revenue after adjusting for the settlement of derivative contracts.

    As used herein, adjusted EBITDA margin is calculated as adjusted EBITDA expressed as a percentage of total revenue, inclusive of settled hedges. Adjusted EBITDA margin encompasses the direct operating costs and the portion of general and administrative costs required to produce each Mcfe. This metric includes operating expense, employee costs, administrative costs and professional services, and recurring allowance for credit losses, which cover both fixed and variable costs components. We believe that adjusted EBITDA margin is a useful measure of our profitability and efficiency, as well as our earnings quality, because it evaluates the Group on a more comparable basis period-over-period, especially given our frequent involvement in transactions that are not comparable between periods.

      Year Ended
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Total revenue $ 794,841   $ 868,263   $ 1,919,349  
    Net gain (loss) on commodity derivative instruments(a)   151,289     178,064     (895,802 )
    Total revenue, inclusive of settled hedges $ 946,130   $ 1,046,327   $ 1,023,547  
    Adjusted EBITDA $ 472,309   $ 546,788   $ 502,954  
    Adjusted EBITDA margin   50 %   52 %   49 %
    Adjusted EBITDA margin, excluding Next LVL Energy   51 %   53 %   50 %
    1. Net gain (loss) on commodity derivative settlements represents the cash paid or received on commodity derivative contracts. This excludes settlements on foreign currency and interest rate derivatives, as well as the gain (loss) on fair value adjustments for unsettled financial instruments for each of the periods presented.

    Free Cash Flow

    As used herein, free cash flow represents net cash provided by operating activities, less expenditures on natural gas and oil properties and equipment, and cash paid for interest. We believe that free cash flow is a useful indicator of our ability to generate cash that is available for activities beyond capital expenditures. The Directors believe that free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments, and pay dividends.

      Year Ended
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Net cash provided by operating activities $ 345,663   $ 410,132   $ 387,764  
    LESS: Expenditures on natural gas and oil properties and equipment   (52,100 )   (74,252 )   (86,079 )
    LESS: Cash paid for interest   (123,141 )   (116,784 )   (83,958 )
    Free cash flow $ 170,422   $ 219,096   $ 217,727  
    Cash generated through divestitures of land $ 40,986   $ 28,160   $ 2,472  
    Adjusted free cash flow $ 211,408   $ 247,256   $ 220,199  


    Net Debt and Net Debt-to-Adjusted EBITDA (“Leverage”)

    As used herein, net debt represents total debt as recognized on the balance sheet, minus cash and restricted cash. Total debt includes borrowings under our Credit Facility and borrowings under, or issuances of, our subsidiaries’ securitization facilities. We believe net debt is a useful indicator of our leverage and capital structure.

    As used herein, net debt-to-adjusted EBITDA, also referred to as “leverage” or the “leverage ratio,” is calculated by dividing net debt by adjusted EBITDA. We believe this metric is a crucial measure of our financial liquidity and flexibility, and it is also used in the calculation of a key metric in one of our Credit Facility financial covenants.

      As of
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Total debt(a) $ 1,693,242   $ 1,276,627   $ 1,440,329  
    LESS: Cash   5,990     3,753     7,329  
    LESS: Restricted cash(b)   46,269     36,252     55,388  
    Net debt $ 1,640,983   $ 1,236,622   $ 1,377,612  
           
    Adjusted EBITDA $ 472,309,000   $ 546,788,000   $ 502,954,000  
    Pro forma adjusted EBITDA(c) $ 548,570   $ 553,252   $ 574,414  
    Net debt-to-pro forma adjusted EBITDA(d) 2.9x
    		   2.2x
    		   2.4x
    		  
    1. Includes adjustments for deferred financing costs and original issue discounts, consistent with presentation on the Statement of Financial Position.
    2. The increase of restricted cash as of December 31, 2024, is due to the addition of $21 million and $3 million in restricted cash for the ABS VIII Notes and ABS IX Notes, respectively, offset by $7 million and $9 million for the retirement of the ABS III Notes and ABS V Notes, respectively.
    3. Includes adjustments for the year ended December 31, 2024 for the Oaktree, Crescent Pass, and East Texas II acquisitions to pro forma their results for the full twelve months of operations. Similar adjustments were made for the year ended December 31, 2023 for the Tanos II Acquisition, as well as for the year ended December 31, 2022 for the East Texas I and ConocoPhillips acquisitions.
    4. Excludes long-term plant financing of $30 million for the year ended December 31, 2024.

    The MIL Network –

  • MIL-OSI: SAIC Announces Fourth Quarter and Full Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    • Q4 FY25 revenues of $1.84 billion, 5.8% organic growth(1); FY25 revenues of $7.48 billion, 3.1% organic growth(1); organic growth adjusted for divestitures
    • Q4 FY25 net income of $98 million, adjusted EBITDA(1) of $177 million or 9.6% of revenue; FY25 net income of $362 million, adjusted EBITDA(1) of $710 million or 9.5% of revenue
    • Q4 FY25 diluted earnings per share of $2.00, adjusted diluted earnings per share(1) of $2.57; FY25 diluted earnings per share of $7.17, adjusted diluted earnings per share(1) of $9.13
    • Q4 FY25 cash flows provided by operating activities of $115 million, free cash flow(1) and transaction-adjusted free cash flow(1) of $236 million; FY25 cash flows provided by operating activities of $494 million, free cash flow(1) of $499 million, transaction-adjusted free cash flow(1) of $507 million
    • Q4 FY25 net bookings of $1.3 billion; book-to-bill ratio of 0.7; trailing twelve months book-to-bill ratio of 0.9
    • FY26 guidance introduced above prior targets for revenues, adjusted EBITDA(1), adjusted EBITDA margin(1), and adjusted diluted EPS(1)

    RESTON, Va., March 17, 2025 (GLOBE NEWSWIRE) — Science Applications International Corporation (NASDAQ: SAIC), a premier Fortune 500® technology integrator driving our nation’s digital transformation across the defense, space, civilian, and intelligence markets, today announced results for the fourth quarter and full fiscal year ended January 31, 2025.

    “I am proud of the results we delivered in the quarter with revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow ahead of guidance,” said Toni Townes-Whitley, SAIC Chief Executive Officer. “Subsequent to quarter close, we received a $1.8 billion award for our largest recompete win in recent years, the System Software Lifecycle Engineering program. This important win along with a backlog of submitted bids valued at approximately $20 billion reflect the momentum we are building inside the company. I want to thank the team for a strong finish to the year and for their commitment and dedication to our customers’ mission during these uncertain times.”

    Fourth Quarter and Full Fiscal Year 2025: Summary Operating Results

      Three Months Ended   Year Ended
      January 31,
    2025
    		     Percent
    change    		     February 2,
    2024    		     January 31,
    2025
    		     Percent
    change    		     February 2,
    2024    		  
      (in millions, except per share amounts)
    Revenues $ 1,838     6  %   $ 1,737     $ 7,479     —  %   $ 7,444  
    Operating income   138     75  %     79       563     (24 )%     741  
    Operating income as a percentage of revenues   7.5 %   300 bps     4.5 %     7.5 %   -250 bps     10.0 %
    Adjusted operating income(1)   176     42  %     124       705     7  %     659  
    Adjusted operating income as a percentage of revenues   9.6 %   250 bps     7.1 %     9.4 %   50 bps     8.9 %
    Net income   98     151  %     39       362     (24 )%     477  
    EBITDA(1)   175     48  %     118       708     (21 )%     891  
    EBITDA as a percentage of revenues   9.5 %   270 bps     6.8 %     9.5 %   -250 bps     12.0 %
    Adjusted EBITDA(1)   177     39  %     127       710     6  %     668  
    Adjusted EBITDA as a percentage of revenues   9.6 %   230 bps     7.3 %     9.5 %   50 bps     9.0 %
    Diluted earnings per share $ 2.00     170  %   $ 0.74     $ 7.17     (19 )%   $ 8.88  
    Adjusted diluted earnings per share(1) $ 2.57     80  %   $ 1.43     $ 9.13     16  %   $ 7.88  
    Net cash provided by operating activities $ 115     83  %   $ 63     $ 494     25  %   $ 396  
    Free cash flow(1) $ 236     143  %   $ 97     $ 499     21  %   $ 414  
    Transaction-adjusted free cash flow(1) $ 236     98  %   $ 119     $ 507     4  %   $ 486  

    (1) Non-GAAP measure, see Schedule 6 for information about this measure.

    The Company utilizes a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks. Fiscal years 2025 and 2024 both consisted of 52 weeks.

    Fourth Quarter Summary Results

    Revenues for the quarter increased $101 million compared to the prior year quarter primarily due to ramp up in volume on new and existing contracts, partially offset by contract completions.

    Operating income as a percentage of revenues increased to 7.5% for the quarter as compared to 4.5% in the comparable prior year period primarily due to improved profitability across our contract portfolio, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.

    Adjusted EBITDA(1) as a percentage of revenues for the quarter was 9.6%, compared to 7.3% for the prior year quarter primarily due to improved profitability across our contract portfolio, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.

    Diluted earnings per share for the quarter was $2.00 compared to $0.74 in the prior year quarter. Adjusted diluted earnings per share(1) was $2.57 for the quarter compared to $1.43 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 49.0 million shares from 52.7 million during the prior year quarter.

    (1) Non-GAAP measure, see Schedule 6 for information about this measure.

    Fiscal Year 2025 Summary Results

    Revenues for the fiscal year increased $35 million compared to the prior year primarily due to ramp up in volume in existing and new contracts. This was partially offset by the sale of the Supply Chain Business ($188 million) in the prior year, and contract completions. Adjusting for the impact of the divestiture, revenues grew approximately 3.1%.

    Operating income as a percentage of revenues for the fiscal year decreased compared to the prior year primarily due to a $233 million gain recognized from the sale of the Supply Chain Business and a $7 million gain recognized from the deconsolidation of FSA in the prior year. This was partially offset by improved profitability across our contract portfolio, the resolution of the Assault Amphibious Vehicle (“AAV”) contract termination, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.

    Adjusted EBITDA(1) as a percentage of revenues for the fiscal year increased compared to the prior year. The increase was driven by improved profitability across our contract portfolio, the resolution of the AAV contract termination, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.

    Diluted earnings per share for the year was $7.17 compared to $8.88 in the prior year. Adjusted diluted earnings per share(1) was $9.13 for the year compared to $7.88 in the prior year. The weighted-average diluted shares outstanding during the year decreased to 50.5 million shares from 53.7 million shares during the prior year.

    (1) Non-GAAP measure, see Schedule 6 for information about this measure.

    Cash Generation and Capital Deployment

    Total cash flows provided by operating activities for the fourth quarter were $115 million, an increase of $52 million compared to the prior year quarter, primarily due to lower tax payments in the current quarter, timing of vendor payments, and other changes in working capital, partially offset by higher cash outflows from the usage of the Master Accounts Receivable Purchase Agreement (“MARPA Facility”) with MUFG bank, LTD.

    Total cash flows provided by operating activities for the year were $494 million, an increase of $98 million from the prior year, primarily due to higher tax payments in fiscal 2024 from the sale of the Supply Chain Business and other changes in working capital, partially offset by higher incentive-based compensation payments in the current year.

    During the quarter, SAIC deployed $163 million of capital, consisting of $130 million of share repurchases in accordance with established repurchase plans, $18 million in cash dividends to shareholders, and $15 million of capital expenditures. For the year, SAIC deployed $638 million of capital, consisting of share repurchases of $527 million (approximately 4.2 million shares) in accordance with established repurchase plans, cash dividends of $75 million to shareholders, and $36 million of capital expenditures.

    Quarterly Dividend Declared

    As previously announced, subsequent to fiscal year-end, the Company’s Board of Directors (“Board of Directors”) declared a cash dividend of $0.37 per share of the Company’s common stock payable on April 25, 2025 to stockholders of record on April 11, 2025. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

    Backlog and Contract Awards

    Net bookings for the quarter were approximately $1.3 billion, which reflects a book-to-bill ratio of approximately 0.7. Net bookings for the year were approximately $6.6 billion, which reflects a book-to-bill ratio of approximately 0.9.

    SAIC’s estimated backlog at the end of fiscal year 2025 was approximately $21.9 billion of which $3.4 billion was funded.

    SAIC was awarded the following contracts during the quarter:

    Notable New Awards:

    Department of Defense: During the quarter, SAIC was awarded the Defense Readiness Reporting System (“DRRS”) Sustainment task order under the recently awarded Personnel and Readiness Infrastructure Support Management (“PRISM”) Multiple Award Task Order Contract (“MATOC”) vehicle to support the Department of Defense (“DoD”) and its need to obtain critical services in a shorter time frame. The $187 million task order has a 3-year period of performance (one-year base, plus two, one-year options), tasking SAIC with modernizing DRRS to create a predictive, proactive readiness management tool for the DoD.

    Notable Recompete Awards:

    U.S. Space and Intelligence Community: During the quarter, SAIC was awarded approximately $480 million of contract awards by space and intelligence organizations. These awards represent a combination of new business and recompetes.

    Notable Awards Subsequent to Period End (not included in current quarter bookings):

    U.S. Army Combat Capabilities Development Command (CCDC) Aviation and Missile Center (AvMC): Subsequent to the end of the quarter, SAIC was awarded the System Software Lifecycle Engineering contract, a five-year (one year base, plus four, one-year option periods) $1.8 billion contract to continue mission engineering, integration, software development, and other life cycle support to CCDC-AvMC. Under the five-year award, SAIC will continue to develop and integrate advanced technologies throughout the software life cycle, including software development and maintenance.

    Fiscal Year 2026 Guidance

    The Company’s outlook for fiscal year 2026 is being provided. The table below summarizes fiscal year 2026 guidance and represents our views as of March 17, 2025. 

      CURRENT Fiscal Year PRIOR Fiscal Year
      2026 Guidance 2026 Targets
    Revenue $7.60B – $7.75B $7.55B – $7.75B
    Adjusted EBITDA(1) $715M – $735M ~$720M
    Adjusted EBITDA Margin %(1) 9.4% – 9.6% 9.3% – 9.5%
    Adjusted Diluted EPS(1) $9.10 – $9.30 $8.90 – $9.10
    Free Cash Flow(1) $510M – $530M $510M – $530M

    (1) Non-GAAP measure, see Schedule 6 for information about this measure.

    Webcast Information

    SAIC management will discuss operations and financial results in an earnings conference call beginning at 10 a.m. Eastern time on March 17, 2025. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (investors.saic.com). We will be providing webcast access only – “dial-in” access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.

    About SAIC

    SAIC is a premier Fortune 500® technology integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

    We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.5 billion.​​​​ For more information, visit saic.com. For ongoing news, please visit our newsroom.

    Contacts

    Investor Relations: Joe DeNardi, joseph.w.denardi@saic.com 

    Media: Kara Ross, kara.g.ross@saic.com 

    GAAP to Non-GAAP Guidance Reconciliation

    The Company does not provide a reconciliation of forward-looking adjusted diluted EPS to GAAP diluted EPS or adjusted EBITDA margin to GAAP net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate net income may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS or GAAP net income with reasonable certainty. The variability of the above charges may have an unpredictable and potentially significant impact on our future GAAP financial results.

    Forward-Looking Statements

    Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

    Schedule 1:

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    CONDENSED AND CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
     
      Three Months Ended   Year Ended
      January 31,
    2025
    		     February 2,
    2024    		     January 31,
    2025
    		     February 2,
    2024    		  
      (in millions, except per share amounts)
    Revenues $       1,838     $ 1,737     $       7,479     $ 7,444  
    Cost of revenues           1,606       1,545               6,587       6,572  
    Selling, general and administrative expenses               94       114                 339       373  
    (Gain) loss on divestitures, net of transaction costs                —       —                    —       (240 )
    Other operating (income) expense                —       (1 )                (10 )     (2 )
    Operating income             138       79                 563       741  
    Interest expense, net               29       32                 126       120  
    Other (income) expense, net                 2       (1 )                   9       1  
    Income before income taxes             107       48                 428       620  
    Provision for income taxes                (9 )     (9 )                (66 )     (143 )
    Net income $           98     $ 39     $          362     $ 477  
                   
    Weighted-average number of shares outstanding:              
    Basic            48.6       52.0                50.1       53.1  
    Diluted            49.0       52.7                50.5       53.7  
    Earnings per share:              
    Basic $         2.02     $ 0.75     $         7.23     $ 8.98  
    Diluted $         2.00     $ 0.74     $         7.17     $ 8.88  

    Schedule 2:

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    CONDENSED AND CONSOLIDATED BALANCE SHEETS
    (Unaudited)
      January 31,
    2025
    		   February 2,
    2024
      (in millions)
    ASSETS      
    Current assets:      
    Cash and cash equivalents $              56   $ 94
    Receivables, net             1,000     914
    Prepaid expenses and other current assets                 98     123
    Total current assets             1,154     1,131
    Goodwill             2,851     2,851
    Intangible assets, net                779     894
    Property, plant, and equipment, net                104     91
    Operating lease right of use assets                164     152
    Other assets                194     195
    Total assets $         5,246   $ 5,314
           
    LIABILITIES AND EQUITY      
    Current liabilities:      
    Accounts payable and accrued liabilities $            744   $ 711
    Accrued payroll and employee benefits                339     370
    Debt, current portion                313     77
    Total current liabilities             1,396     1,158
    Debt, net of current portion             1,907     2,022
    Operating lease liabilities                173     147
    Deferred income taxes                 24     28
    Other long-term liabilities                169     174
    Equity:      
    Total stockholders’ equity             1,577     1,785
    Total liabilities and stockholders’ equity $         5,246   $ 5,314

    Schedule 3:

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
      Three Months Ended   Year Ended
      January 31,
    2025
    		     February 2,
    2024    		     January 31,
    2025
    		     February 2,
    2024    		  
      (in millions)
    Cash flows from operating activities:              
    Net income $            98     $ 39     $          362     $ 477  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization               36       36                  140       142  
    Deferred income taxes               12       16                    (3 )     (17 )
    Stock-based compensation expense               15       26                   53       68  
    Gain on divestitures                —       —                    —       (247 )
    Other                 2       (2 )                  (7 )     (6 )
    Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of the acquisitions and divestitures:              
    Receivables               22       96                  (86 )     (46 )
    Prepaid expenses and other current assets                (7 )     (56 )                 24       (43 )
    Other assets                (9 )     (19 )                   1       (14 )
    Accounts payable and accrued liabilities              (71 )     (128 )                 48       13  
    Accrued payroll and employee benefits               28       53                  (31 )     49  
    Operating lease assets and liabilities, net                 1       (1 )                  (6 )     (4 )
    Other long-term liabilities              (12 )     3                    (1 )     24  
    Net cash provided by operating activities   115       63                  494       396  
    Cash flows from investing activities:              
    Expenditures for property, plant, and equipment              (15 )     (11 )                (36 )     (27 )
    Purchases of marketable securities                (3 )     (2 )                (14 )     (8 )
    Sales of marketable securities                 2       1                   12       6  
    Proceeds from sale of equity method investments                —       —                   10       —  
    Proceeds from divestitures                —       —                    —       356  
    Cash divested upon deconsolidation of joint venture                —       —                    —       (8 )
    Other                (4 )     2                    (7 )     (5 )
    Net cash (used in) provided by investing activities              (20 )     (10 )                (35 )     314  
    Cash flows from financing activities:              
    Principal payments on borrowings            (325 )     (166 )           (1,381 )     (441 )
    Proceeds from borrowings              385       —               1,499       160  
    Stock repurchased and retired or withheld for taxes on equity awards            (133 )     (89 )              (558 )     (382 )
    Dividend payments to stockholders              (18 )     (19 )                (75 )     (79 )
    Issuances of stock                 6       4                   20       17  
    Other                —       —                    (3 )     —  
    Net cash used in financing activities              (85 )     (270 )              (498 )     (725 )
    Net increase (decrease) in cash, cash equivalents and restricted cash               10       (217 )                (39 )     (15 )
    Cash, cash equivalents and restricted cash at beginning of period               54       320                  103       118  
    Cash, cash equivalents and restricted cash at end of period $            64     $ 103     $            64     $ 103  

    Schedule 4:

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    SEGMENT OPERATING RESULTS
    (Unaudited)
     
      Three Months Ended   Year Ended
      January 31,
    2025
    		     February 2,
    2024    		     January 31,
    2025    		     February 2,
    2024    		  
      (in millions)
    Revenues              
    Defense and Intelligence $ 1,360     $ 1,352     $ 5,726     $ 5,817  
    Civilian   478       385       1,753       1,627  
    Total revenues $ 1,838     $ 1,737     $ 7,479     $ 7,444  
                   
    Operating income (loss)              
    Defense and Intelligence $ 96     $ 100     $ 440     $ 436  
    Civilian   63       19       168       158  
    Corporate   (21 )     (40 )     (45 )     147  
    Total operating income $ 138     $ 79     $ 563     $ 741  
                   
    Operating margin              
    Defense and Intelligence   7.1 %     7.4 %     7.7 %     7.5 %
    Civilian   13.2 %     4.9 %     9.6 %     9.7 %
    Total operating margin   7.5 %     4.5 %     7.5 %     10.0 %
                   
    Adjusted operating income (loss)(1)              
    Defense and Intelligence $ 113     $ 117     $ 509     $ 504  
    Civilian   75       31       216       206  
    Corporate   (12 )     (24 )     (20 )     (51 )
    Total adjusted operating income(1) $ 176     $ 124     $ 705     $ 659  
                   
    Adjusted operating margin(1)              
    Defense and Intelligence   8.3 %     8.7 %     8.9 %     8.7 %
    Civilian   15.7 %     8.1 %     12.3 %     12.7 %
    Total adjusted operating margin(1)   9.6 %     7.1 %     9.4 %     8.9 %


    Defense and Intelligence Results

    Revenues in the fourth quarter increased $8 million or 0.6% compared to the same period in the prior year primarily due to ramp up in volume on existing and new contracts, partially offset by contract completions.

    Revenues in the fiscal year decreased $91 million or 2% compared to the prior year primarily due to the sale of the Supply Chain Business ($188 million) in the prior year, and contract completions. This was partially offset by ramp up in volume on existing and new contracts. Adjusting for the impact of the divestiture, revenues grew 1.7%.

    Operating income and adjusted operating income(1) as a percentage of revenues in the fourth quarter decreased compared to the same period in the prior year primarily due to timing and volume mix.

    Operating income and adjusted operating income(1) as a percentage of revenues in the fiscal year increased from the prior year primarily due to ramp up in volume on existing and new contracts, and the resolution of the AAV contract termination, partially offset by contract completions and the gain on sale of the Supply Chain Business in the prior year.

    Civilian Results

    Revenues in the fourth quarter increased $93 million or 24% compared to the same period in the prior year primarily due to ramp up in volume on existing contracts, partially offset by contract completions.

    Revenues in the fiscal year increased $126 million or 8% compared to the prior year primarily due to ramp up in volume on existing and new contracts, partially offset by contract completions.

    Operating income and adjusted operating income(1) as a percentage of revenues in the fourth quarter increased compared to the same period in the prior year primarily due to improved profitability across our contract portfolio.

    Operating income and adjusted operating income(1) as a percentage of revenues in the fiscal year decreased compared to the prior year primarily due to timing and volume mix.

    Corporate Results

    Operating loss and adjusted operating loss(1) in the fourth quarter decreased $19 million and $12 million, respectively, compared to the same period in the prior year primarily due to lower incentive-based compensation expense, including acceleration of stock-based compensation related to the reorganization and executive transition in the prior year.

    Operating loss in the fiscal year increased $192 million compared to the prior year primarily due to gain on the sale of the Supply Chain Business in the prior year ($233 million) and the gain recognized from the deconsolidation of FSA ($7 million) in the prior year, partially offset by lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.

    Adjusted operating loss(1) in the fiscal year decreased $31 million compared to the prior year primarily due to lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.

    (1) Non-GAAP measure, see Schedule 6 for information about this measure.

    Schedule 5:

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    BACKLOG
    (Unaudited)
     
    The estimated value of our total backlog as of the dates presented was:
     
      January 31, 2025   February 2, 2024
      Defense and
    Intelligence    		 Civilian Total SAIC   Defense and
    Intelligence    		 Civilian Total SAIC
      (in millions)
    Funded backlog $ 2,599 $          845 $ 3,444   $ 2,707 $ 832 $ 3,539
    Negotiated unfunded backlog   15,341           3,072   18,413     16,316   2,908   19,224
    Total backlog $ 17,940 $       3,917 $ 21,857   $ 19,023 $ 3,740 $ 22,763


    Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed and excludes contract awards which have been protested by competitors until the protest is resolved in our favor. SAIC segregates backlog into two categories, funded backlog and negotiated unfunded backlog. Funded backlog for contracts with government agencies primarily represents contracts for which funding is appropriated less revenues previously recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally appropriated or authorized by the U.S. government and other customers even though the contract may call for performance over a number of years. Funded backlog for contracts with non-government agencies represents the estimated value of contracts which may cover multiple future years under which SAIC is obligated to perform, less revenues previously recognized on these contracts. Negotiated unfunded backlog represents the estimated future revenues to be earned from negotiated contracts for which funding has not been appropriated or authorized, and unexercised priced contract options. Negotiated unfunded backlog does not include any estimate of future potential task orders expected to be awarded under indefinite delivery, indefinite quantity (IDIQ), U.S. General Services Administration (GSA) schedules or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

    Schedule 6:

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    NON-GAAP FINANCIAL MEASURES
    (Unaudited)

    This schedule describes the non-GAAP financial measures included in this earnings release. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered as supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Reconciliations, definitions, and how we believe these measures are useful to management and investors are provided below. Other companies may define similar measures differently.

    EBITDA and Adjusted EBITDA

      Three Months Ended   Year Ended
      January 31,
    2025
    		     February 2,
    2024    		     January 31,
    2025
    		     February 2,
    2024    		  
      (in millions)
    Revenues $ 1,838     $ 1,737     $ 7,479     $ 7,444  
    Net income   98       39       362       477  
    Interest expense, net and loss on sale of receivables   32       34       140       129  
    Provision for income taxes   9       9       66       143  
    Depreciation and amortization   36       36       140       142  
    EBITDA(1) $ 175     $ 118     $ 708     $ 891  
    EBITDA as a percentage of revenues   9.5 %     6.8 %     9.5 %     12.0 %
    Acquisition and integration costs   —       —       (2 )     1  
    Restructuring and impairment costs   4       15       8       23  
    Depreciation included in restructuring and impairment costs   (1 )     (1 )     (1 )     (1 )
    Recovery of acquisition and integration costs and restructuring and impairment costs   (1 )     (5 )     (3 )     (6 )
    Gain on divestitures, net of transaction costs   —       —       —       (240 )
    Adjusted EBITDA(1) $ 177     $ 127     $ 710     $ 668  
    Adjusted EBITDA as a percentage of revenues   9.6 %     7.3 %     9.5 %     9.0 %


    EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA is a performance measure that excludes the impact     of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs relate to the Company’s acquisitions. The restructuring and impairment costs represent the reorganization and facilities optimization costs or impairments of long-lived assets, along with associated depreciation included in those restructuring and impairment costs. The recovery of acquisition and integration costs and restructuring and impairment costs relate to costs recovered through the Company’s indirect rates in accordance with Cost Accounting Standards. The (gain) loss on divestitures includes gains associated with the deconsolidation of FSA and the sale of the logistics and supply chain management business, net of transaction costs. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

    (1) Non-GAAP measure, see above for definition.

    Schedule 6 (continued):

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    NON-GAAP FINANCIAL MEASURES
    (Unaudited)

    Adjusted Operating Income

      Three Months Ended January 31, 2025
      GAAP
    results
    		     Restructuring
    and
    impairment
    costs    		   Depreciation
    included in
    restructuring and
    impairment costs    		     Recovery of
    acquisition and
    integration costs
    and restructuring
    and impairment
    costs    		     Depreciation of
    property, plant,
    and equipment    		   Amortization
    of intangible
    assets    		   Non-GAAP
    results(1)
    		     Non-GAAP
    operating
    margin(1)    		  
      (in millions)
    Defense and Intelligence $          96     $ —   $ —     $ —     $ 1   $ 16   $ 113     8.3 %
    Civilian             63       —     —       —       —     12               75     15.7 %
    Corporate            (21 )     4     (1 )     (1 )     7     —              (12 )   NM
    Total $        138     $            4   $             (1 )   $               (1 )   $              8   $          28   $        176     9.6 %
      Three Months Ended February 2, 2024
      GAAP
    results
    		     Restructuring
    and
    impairment
    costs    		   Depreciation
    included in
    restructuring and
    impairment
    costs    		     Recovery of
    acquisition and
    integration costs
    and restructuring
    and impairment
    costs    		     Depreciation of
    property, plant,
    and equipment    		   Amortization
    of intangible
    assets    		   Non-GAAP
    results(1)
    		     Non-GAAP
    operating
    margin(1)    		  
      (in millions)
    Defense and Intelligence $        100     $ —   $ —     $ —     $ —   $ 17   $ 117     8.7 %
    Civilian             19       —     —       —       —     12               31     8.1 %
    Corporate            (40 )     15     (1 )     (5 )     7     —              (24 )   NM
    Total $          79     $          15   $              (1 )   $              (5 )   $              7   $          29   $        124     7.1 %


    Adjusted operating income is a performance measure that primarily excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs relate to the Company’s acquisitions. The restructuring and impairment costs represent the reorganization and facilities optimization costs or impairments of long-lived assets, along with associated depreciation included in those restructuring and impairment costs. The recovery of acquisition and integration costs and restructuring and impairment costs relate to costs recovered through the Company’s indirect rates in accordance with Cost Accounting Standards. Depreciation of property, plant, and equipment relates to property, plant, and equipment specifically identifiable for each segment. Adjusted operating income also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

    (1) Non-GAAP measure, see above for definition.

    Schedule 6 (continued):

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    NON-GAAP FINANCIAL MEASURES
    (Unaudited)

    Adjusted Operating Income

      Year Ended January 31, 2025
      GAAP
    results
    		     Acquisition
    and
    integration
    costs    		     Restructuring
    and
    impairment
    costs    		   Depreciation
    included in
    restructuring
    and
    impairment
    costs    		     Recovery of
    acquisition and
    integration
    costs and
    restructuring
    and impairment
    costs    		     Depreciation of
    property, plant,
    and equipment    		   Amortization
    of intangible
    assets    		   Non-GAAP
    results(1)
    		     Non-GAAP
    operating
    margin(1)    		  
      (in millions)
    Defense and Intelligence $     440     $          —     $          —   $         —     $              —     $             2   $          67   $        509     8.9 %
    Civilian         168                  —                 —               —                      —                   —                48             216     12.3 %
    Corporate         (45 )                (2 )                 8               (1 )                    (3 )                 23                —              (20 )   NM
    Total $     563     $          (2 )   $           8   $         (1 )   $              (3 )   $           25   $        115    $        705     9.4 %
      Year Ended February 2, 2024
      GAAP
    results    		   Acquisition
    and
    integration
    costs    		   Restructuring
    and
    impairment
    costs    		   Depreciation
    included in
    restructuring
    and
    impairment
    costs    		   Recovery of
    acquisition and
    integration
    costs and
    restructuring
    and impairment
    costs    		   Depreciation of
    property, plant,
    and equipment    		   Amortization
    of intangible
    assets    		   Gain on
    divestitures,
    net of
    transaction
    costs    		   Non-GAAP
    results(1)    		   Non-GAAP
    operating
    margin(1)
      (in millions)
    Defense and Intelligence $   436   $       —   $          —   $         —     $            —     $          1   $        67   $          —     $    504     8.7 %
    Civilian       158             —               —               —                    —                 —              48               —            206     12.7 %
    Corporate       147              1               23               (1 )                  (6 )              25              —            (240 )          (51 )   NM
    Total $   741   $         1   $         23   $         (1 )   $            (6 )   $        26   $      115    $      (240 )   $    659     8.9 %


    Adjusted operating income is a performance measure that primarily excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs relate to the Company’s acquisitions. The restructuring and impairment costs represent the reorganization and facilities optimization costs or impairments of long-lived assets, along with associated depreciation included in those restructuring and impairment costs. The recovery of acquisition and integration costs and restructuring and impairment costs relate to costs recovered through the Company’s indirect rates in accordance with Cost Accounting Standards. Depreciation of property, plant, and equipment relates to property, plant, and equipment specifically identifiable for each segment. Adjusted operating income also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. The (gain) loss on divestitures includes gains associated with the deconsolidation of FSA and the sale of the logistics and supply chain management business, net of transaction costs. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

    (1) Non-GAAP measure, see above for definition.

    Schedule 6 (continued):

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    NON-GAAP FINANCIAL MEASURES
    (Unaudited)

    Adjusted Diluted Earnings Per Share

      Three Months Ended January 31, 2025
      As Reported
    		     Restructuring
    and
    impairment
    costs    		     Recovery of
    acquisition and
    integration costs
    and restructuring
    and impairment
    costs    		     Amortization of
    intangible
    assets    		     Non-GAAP
    results(1)
    		  
      (in millions, except per share amounts)
    Income before income taxes $                107     $ 4     $ (1 )   $ 28     $                138  
    Income tax expense                       (9 )     (1 )     —       (2 )                       (12 )
    Net income $                  98     $ 3     $ (1 )   $ 26     $                126  
                       
    Diluted EPS $               2.00     $ 0.06     $ (0.02 )   $ 0.53     $               2.57  
      Three Months Ended February 2, 2024
      As Reported
    		     Restructuring
    and
    impairment
    costs    		     Recovery of
    acquisition and
    integration costs
    and restructuring
    and impairment
    costs    		     Amortization of
    intangible
    assets    		     Gain on
    divestitures,
    net of transaction
    costs    		   Non-GAAP
    results(1)
    		  
      (in millions, except per share amounts)
    Income before income taxes $                  48     $ 15     $ (5 )   $ 29     $ —   $                  87  
    Income tax expense                       (9 )     (1 )     1       (5 )     2                       (12 )
    Net Income $                  39     $ 14     $ (4 )   $ 24     $ 2   $                  75  
                           
    Diluted EPS $               0.74     $ 0.27     $ (0.08 )   $ 0.46     $ 0.04   $               1.43  


    Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs relate to the Comp    any’s acquisitions. The restructuring and impairment costs represent the reorganization and facilities optimization costs or impairments of long-lived assets. The recovery of acquisition and integration costs and restructuring and impairment costs relate to costs recovered through the Company’s indirect rates in accordance with Cost Accounting Standards. Adjusted diluted earnings per share also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. The (gain) loss on divestitures includes gains associated with the sale of the logistics and supply chain management business, net of transaction costs. We believe that this performance measure provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

    (1) Non-GAAP measure, see above for definition.

    Schedule 6 (continued):

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    NON-GAAP FINANCIAL MEASURES
    (Unaudited)

    Adjusted Diluted Earnings Per Share

      Year Ended January 31, 2025
      As Reported
    		     Acquisition
    and
    integration
    costs    		     Restructuring
    and
    impairment
    costs    		     Recovery of
    acquisition and
    integration costs
    and restructuring
    and impairment
    costs    		     Amortization of
    intangible
    assets    		     Non-GAAP
    results(1)
    		  
      (in millions, except per share amounts)
    Income before income taxes $              428     $ (2 )   $ 8     $ (3 )   $ 115     $              546  
    Income tax expense                  (66 )     —       (1 )     —       (18 )                    (85 )
    Net income $              362     $ (2 )   $ 7     $ (3 )   $ 97     $              461  
                           
    Diluted EPS $            7.17     $ (0.04 )   $ 0.14     $ (0.06 )   $ 1.92     $            9.13  
      Year Ended February 2, 2024
      As
    Reported
    		     Acquisition
    and
    integration
    costs    		   Restructuring
    and
    impairment
    costs    		     Recovery of
    acquisition and
    integration costs
    and restructuring
    and impairment
    costs    		     Amortization of
    intangible
    assets    		     Gain on
    divestitures,
    net of
    transaction costs    		     Non-GAAP
    results(1)
    		  
      (in millions, except per share amounts)
    Income before income taxes $          620     $ 1   $ 23     $ (6 )   $ 115     $ (240 )   $            513  
    Income tax expense            (143 )     —     (2 )     1       (21 )     75                    (90 )
    Net Income $          477     $ 1   $ 21     $ (5 )   $ 94     $ (165 )   $            423  
                               
    Diluted EPS $        8.88     $ 0.02   $ 0.39     $ (0.09 )   $ 1.75     $ (3.07 )   $          7.88  


    Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing o    perating performance. The acquisition and integration costs relate to the Company’s acquisitions. The restructuring and impairment costs represent the reorganization and facilities optimization costs or impairments of long-lived assets. The recovery of acquisition and integration costs and restructuring and impairment costs relate to costs recovered through the Company’s indirect rates in accordance with Cost Accounting Standards. Adjusted diluted earnings per share also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. The (gain) loss on divestitures includes gains associated with the deconsolidation of FSA and the sale of the logistics and supply chain management business, net of transaction costs. We believe that this performance measure provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

    (1) Non-GAAP measure, see above for definition.

    Schedule 6 (continued):

    SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
    NON-GAAP FINANCIAL MEASURES
    (Unaudited)

    Free Cash Flow

      Three Months Ended   Year Ended
      January 31,
    2025
    		     February 2,
    2024    		     January 31,
    2025
    		     February 2,
    2024    		  
      (in millions)
    Net cash provided by operating activities $ 115     $ 63     $          494     $ 396  
    Expenditures for property, plant, and equipment              (15 )     (11 )                (36 )     (27 )
    Cash used (provided) by MARPA Facility              136       45                   41       45  
    Free cash flow(1) $          236     $ 97     $          499     $ 414  
    L&SCM divestiture transaction fees                —       —                    —       7  
    L&SCM divestiture cash taxes                —       18                    —       74  
    L&SCM divestiture transition services                —       4                     8       (9 )
    Transaction-adjusted free cash flow(1) $          236     $ 119     $          507     $ 486  
      FY26 Guidance
      (in millions)
    Net cash provided by operating activities $545M to $565M
    Expenditures for property, plant, and equipment Approximately $35M
    Free cash flow(1) $510M to $530M


    Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sale of certain designated eligible U.S. government receivables. Under the MARPA Facility, the Company can sell eligible receivables up to a maximum amount of $300 million. Transaction-adjusted free cash flow excludes cash taxes, transaction fees, and other costs related to the divestiture of the logistics and supply chain management business from free cash flow as previously defined. We believe that free cash flow and transaction-adjusted free cash flow provides management and investors with useful information in assessing trends in our cash flows and in comparing them to other peer companies, many of whom present similar non-GAAP liquidity measures. These measures should not be considered as a measure of residual cash flow available for discretionary purposes.

    (1)Non-GAAP measure, see above for definition.

    The MIL Network –

  • MIL-OSI: Barnwell Industries, Inc. Announces Sale of its Water Drilling Subsidiary for $1,050,000

    Source: GlobeNewswire (MIL-OSI)

    HONOLULU, March 17, 2025 (GLOBE NEWSWIRE) — Barnwell Industries, Inc. (NYSE American: BRN) (“Barnwell” or the “Company”) today announced the sale of its wholly owned subsidiary, Water Resources International, Inc. (“Water Resources”), a deep drilling and well pumping specialist in the exploration and development of groundwater resources for government, commercial and private clients in Hawaii, for $1,050,000. Proceeds from the sale will be used for general corporate purposes, with a focus towards reinvestment in the Company’s oil and gas operations. Revenues from the divested business, which was represented as the Company’s Contract Drilling segment, totaled approximately $3,162,000 for the trailing-twelve-months ended December 31, 2024.

    Strategic Rationale

    This transaction represents a further step in Barnwell’s plan for streamlining its holding company operations, simplifying its corporate and accounting structure. This transaction will allow Barnwell’s Board to proceed with its plans to meaningfully decrease general and administrative expenses and public company costs, including implementing such steps as transitioning personnel to Calgary or elsewhere, reducing the Company’s legacy footprint in Hawaii.

    The sale of Water Resources simplifies the equity story for Barnwell as investors will be able to focus on the significant opportunities the Company has identified in its oil and natural gas business. The combination of the proceeds from the sale of Water Resources and anticipated holding company savings also further improves Barnwell’s financial position and balance sheet, which has no bank debt.

    Management Commentary

    Mr. Craig D. Hopkins, Chief Executive Officer of Barnwell, commented, “The sale of Water Resources was an important strategic objective set by the Board of Directors that took significant time and effort to achieve. I am pleased that the current management team was able work collaboratively to deliver on this important initiative to streamline our business, reduce fixed cost, and focus on higher return opportunities.”

    Forward-Looking Statements

    The information contained in this press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements,” “Risk Factors” and other sections of Barnwell’s annual report on Form 10-K for the last fiscal year and Barnwell’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance on the forward-looking statements contained in this press release, as they speak only as of the date of this press release, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.

    CONTACT:        

    Craig D. Hopkins
    Chief Executive Officer and President
    Phone: (403) 531-1560
    Email: info@bocl.ca

    Russell M. Gifford
    Executive Vice President and Chief Financial Officer
    Phone: (808) 531-8400
    Email: rmg@brninc.com

    The MIL Network –

  • MIL-OSI: Final Results for the Year-Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    Diversified Achieves Strong Final Year-End 2024 Results, Delivers on Capital Allocation Promises, and Introduces 2025 Combined Company Outlook

    2024 Achievements Position Diversified on a Meaningful Path Forward as a Stronger and Larger Company

    Executed Approximately $2 Billion of Acquisitions in an Advantageous Pricing Environment

    Third year of Consistent Operating Costs Despite Broader Industry and Inflationary Pressures

    Maverick Integration Anticipated to Provide Meaningful Financial and Operational Benefits to Drive Free Cash Flow Acceleration

    Created a PDP Solution for Upstream Peers to Facilitate Operated Acquisitions with an Undeveloped Inventory Focus

    BIRMINGHAM, Ala., March 17, 2025 (GLOBE NEWSWIRE) — Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) is pleased to announce its operational and final audited results for the year ended December 31, 2024.

    Diversified remains a differentiated key player in acquiring and building a portfolio of assets through value-accretive transactions while simultaneously unlocking hidden value through its unique operational framework, strategic development partnerships, and growing adjacent business segments, including coal mine methane (CMM), energy marketing and well-retirement. By completing over $4.0 billion of acquisitions since its public listing in 2017, Diversified has built a large-scale integration and operating company that remains focused on delivering de-risked, reliable cash flow for its shareholders. With the combination of maturing assets and M&A activity leading to growth-oriented E&P’s recycling capital through divestment, there remains an ample opportunity set for Diversified’s continued growth. Additionally, with most upstream acquisitions today focusing on increasing undeveloped inventory, Diversified provides a creative and actionable solution as the PDP purchasing partner for those E&P’s that only value inventory.

    Only Publicly Traded Champion of the PDP Subsector with Unique Strategic Advantages

    • Large Operational Scale: Multiple geographies in core basins including Western Anadarko (largest producer), Permian, Appalachia, Barnett and Ark-La-Tex with commodity product diversification
    • Vertical Integration: In-house marketing, extensive midstream network, wholly-owned processing infrastructure, and a well retirement business segment
    • Leading Technology Platform: 100% cloud architecture, supporting well level data capture, information for actionable production optimization, and real-time monitoring which mitigates production downtime
    • Beneficial Financing Solution: Demonstrated ability to access numerous capital solutions, including investment grade, low-cost Asset Backed Securities, commercial banking facilities and equity investment partners
    • Flexible Capital Allocation: shareholder returns-focused model prioritizing Free Cash Flow for systematic debt reduction, fixed dividend payments, opportunistic share repurchases, and accretive acquisitions
    • Proven Process to Capture Synergies: established integration playbook and sophisticated corporate infrastructure provides considerable expense savings and unlocks sustainable value

    Delivering Consistent and Reliable Results in 2024        

    • Delivered average net daily production: 791 MMcfepd (132 MBoepd)
      • December exit rate of 864 MMcfepd (144 MBoepd)
    • Year end 2024 reserves of 4.5 Tcfe (747 MMBoe; PV10 of $3.3 billion(b))
    • Total Revenue, inclusive of hedges of $946 million(e), net of $151 million in commodity cash hedge receipts that supplemented Total Revenue of $795 million
    • Operating Cash Flow of $346 million; Net loss of $87 million, inclusive of $141 million tax-effected, non-cash unsettled derivative fair value adjustments
    • Adjusted EBITDA of $472 million(c); Adjusted Free Cash Flow of $211 million(d)
      • 2024 Adjusted EBITDA Margin of 51%(c)
      • 2024 Adjusted Operating Cost per unit of $1.70/Mcfe ($10.22/Boe)

    Achieving Expectations

    • Recommend a final quarterly dividend of $0.29 per share
    • Generated $49 million of cash proceeds through land sales and Coal Mine Methane Revenues
    • Retired over $200 million in debt principal through amortizing debt payments
    • Returned $105 million to shareholders, including $21 million in share buybacks(h)
    • Completed $585 million (gross) in strategic and bolt-on acquisitions during 2024
    • Retired 202 Diversified wells in Appalachia, marking third consecutive year to exceed 200 wells
    • OGMP Gold Standard and MSCI AA Rating for third and second consecutive year, respectively
    • Decreased Scope 1 methane intensity to 0.7 MT CO2e per MMcfe, a 13% reduction from 2023

    Powerful Step Forward

    • Closed transformative $1.3 billion acquisition of Maverick Natural Resources (“Maverick”)
      • Largest Producer in the Western Anadarko Basin (WAB)
      • Entry into the Permian basin
      • Expecting to achieve over $50 million in annual synergies by year-end 2025
    • Closed the accretive bolt-on acquisition of assets from Summit Natural Resources
      • Anticipate over 300% increase in cash flow from CMM environmental credit sales in the next 24 months
    • Developed a unique partnership to create an innovative, reliable, net-zero data center power solution
    • Enhancing free cash flow growth in 2025 by advantageously added natural gas hedges (related to ABS & recent acquisitions) and planning approximately $40 million from the divestiture of undeveloped leasehold during the first half of 2025

    CEO Rusty Hutson, Jr. commented:

    “Our over 1,600 women and men of Diversified remain the driving force behind our strong operational and financial performance in 2024. Whether it’s natural gas to power the technology of the future or the everyday needs of families and businesses across our operating region, Diversified provides the reliable and sustainable energy needed, and we continue to invest in growing our business while expanding our opportunity set of cash flow generation through verticals in a variety of end markets.

    We have built a Company that remains highly focused on long-term value creation through the growth of our platform and our ability to leverage vertical integration and scale to operate a structurally and dependably higher-margin business that delivers de-risked, consistent cash flow. Our focused strategy, disciplined leadership team, sound operating practices, and the strong demand for natural gas provide us with momentum as we begin the year and the confidence to achieve our full-year 2025 expectations while executing against our capital allocation strategy. We are starting the year in a position of strength as a bigger, better business, and there has never been a more exciting time for our Company and the energy industry. We feel privileged to be at the heart of the energy renaissance as the Right Company at the Right Time to help provide essential energy needs.”

    Combined Company 2025 Outlook

    Following the recently completed acquisition of Maverick, Diversified expects to realize significant operational synergies associated with a larger, consolidated position in Oklahoma and the ability to improve the overall cost structure of the Maverick Natural Resources assets while continuing to prioritize returns and Free Cash Flow generation.

    The following outlook incorporates a nine-month contribution from the recently acquired Maverick.

      2025 Guidance
    Total Production (Mmcfe/d) 1,050 to 1,100
    % Liquids ~25%
    % Natural Gas ~75%
    Total Capital Expenditures (millions) $165 to $185
    Adj. EBITDA1 (millions) $825 to $875
    Adj. Free Cash Flow1 (millions) ~$420
    Leverage Target 2.0x to 2.5x
    Combined Company Synergies (millions) >$50
    1 Includes the value of anticipated cash proceeds for 2025 land sales
     

    Posting of 2024 Annual Report and Notice of Annual General Meeting

    Diversified has published to the Company’s website its 2024 Annual Report and Notice of AGM, along with the form of proxy for the AGM. These documents can be viewed or downloaded from Diversified’s website at https://ir.div.energy/financial-info.

    The Company has also provided copies of these documents to the National Storage Mechanism that, in accordance with UK Listing Rule 6.4.1R, will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

    Annual General Meeting Arrangements

    The Company’s AGM will be held on April 9, 2025 at 1:00pm BST (8:00am EDT) at the offices of FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A 4HD.

    Presentation and Webcast

    DEC will host a conference call today at 12:30 pm GMT (8:30am EDT) to discuss these results. The conference call details are as follows:

    A corporate presentation will be posted to the Company’s website before the conference call. The presentation can be found at https://ir.div.energy/presentations.

    Footnotes:

    (a) Corporate decline rate of ~10% calculated as the change in average daily production for the month of December 2023 (775 MMcfepd), adjusted for the impact of acquisitions and divestitures occurring during the 2024 calendar year, to the average daily production for the month of December 2024.
    (b) Based on the Company’s year-end PDP reserves and using 10-year NYMEX strip, as at December 31, 2024.
    (c) Adjusted EBITDA represents earnings before interest, taxes, depletion, and amortization, and includes adjustments for items that are not comparable period-over-period; As presented, Adjusted EBITDA includes the impact of the accounting basis for land sales; Adjusted EBITDA Margin represents Adjusted EBITDA (excluding the adjustment for the accounting basis on land sales) as a percent of Total Revenue, Inclusive of Settled Hedges; For purposes of comparability, Adjusted EBITDA Margin excludes Other Revenue of $16 million and Lease Operating Expense of $19 million in 2024 associated with Diversified’s wholly owned plugging subsidiary, Next LVL Energy. For more information, please refer to Non-IFRS Measures, below.
    (d) Free Cash Flow represents net cash provided by operating activities less expenditures on natural gas and oil properties and equipment and cash paid for interest; As used herein, Adjusted Free Cash Flow represents Free Cash Flow, plus cash proceeds from undeveloped acreage sales; For more information, please refer to Non-IFRS Measures, below.
    (e) Calculated as total revenue recorded for the period, inclusive of the impact of derivatives settled in cash. For more information, please refer to Non-IFRS Measures, below.
    (f) Calculated as the availability on the Company’s Revolving Credit Facility (“SLL”) and cash on hand (unrestricted)of December 31, 2024; Does not include the impact of Letters of Credit.
    (g) Net Debt-to-Adjusted EBITDA, or “Leverage” or “Leverage Ratio,” is measured as Net Debt divided by Pro Forma Adjusted EBITDA; Pro forma adjusted EBITDA includes adjustments for the year ended December 31, 2024 for the annualized impact of acquisitions completed during the year. Net Debt calculated as of December 31, 2024 and includes total debt as recognized on the balance sheet, less cash and restricted cash; Total debt includes the Company’s borrowings under the Company’s Revolving Credit Facility (“SLL”) and borrowings under or issuances of, as applicable, the Company’s subsidiaries’ securitization facilities. For more information, please refer to Non-IFRS Measures, below.
       

    For Company-specific items, refer also to the Glossary of Terms and/or Alternative Performance Measures found in Diversified’s 2024 Annual Report

    For further information, please contact:  
    Diversified Energy Company PLC +1 973 856 2757
    Doug Kris dkris@dgoc.com
    www.div.energy  
       
    FTI Consulting dec@fticonsulting.com
    U.S. & UK Financial Public Relations  
       

    About Diversified Energy Company PLC

    Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.

    Important Notices

    This announcement may contain certain forward-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of the Company, and its wholly owned subsidiaries (“the Group”) following the Maverick Acquisition. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “will”, “seek”, “continue”, “aim”, “target”, “projected”, “plan”, “goal”, “achieve”, “outlook” and words of similar meaning, reflect the Company’s beliefs and expectations and are based on numerous assumptions regarding the Company’s present and future business strategies and the environment the Company and the Group will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company or the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company’s or the Group’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the Company’s or the Group’s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company or the Group operate or in economic or technological trends or conditions, and the Company’s or Group’s ability to realize expected benefits of the Maverick acquisition. Past performance of the Company cannot be relied on as a guide to future performance. As a result, you are cautioned not to place undue reliance on such forward-looking statements. The list above is not exhaustive and there are other factors that may cause the Company’s or the Group’s actual results to differ materially from the forward-looking statements contained in this announcement, including the risk factors described in the “Risk Factors” section in the Company’s Annual Report and Form 20-F for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission.

    Forward-looking statements speak only as of their date and neither the Company, nor the Group nor any of its respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur. No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that the financial performance of the Company for the current or future financial years would necessarily match or exceed the historical published for the Company.

    The contents of this announcement are not to be construed as legal, business or tax advice. Each shareholder should consult its own legal adviser, financial adviser or tax adviser for legal, financial or tax advice respectively.

    Percentages in tables have been rounded and accordingly may not add up to 100 per cent. Certain financial data have also been rounded. As a result of this rounding, the totals of data presented in this announcement may vary slightly from the actual arithmetic totals of such data.

    Use of Non-IFRS Measures

    Certain key operating metrics that are not defined under IFRS (alternative performance measures) are included in this announcement. These non-IFRS measures are used by us to monitor the underlying business performance of the Company from period to period and to facilitate comparison with our peers. Since not all companies calculate these or other non-IFRS metrics in the same way, the manner in which we have chosen to calculate the non-IFRS metrics presented herein may not be compatible with similarly defined terms used by other companies. The non-IFRS metrics should not be considered in isolation of, or viewed as substitutes for, the financial information prepared in accordance with IFRS. Certain of the key operating metrics are based on information derived from our regularly maintained records and accounting and operating systems.

    Non-IFRS Disclosures

    Adjusted EBITDA

    As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation, and amortization. Adjusted EBITDA further adjusts for items that are not comparable period-over-period, including accretion of asset retirement obligations, other (income) expense, loss on joint and working interest owners receivable, (gain) loss on bargain purchases, (gain) loss on fair value adjustments of unsettled financial instruments, (gain) loss on natural gas and oil property and equipment, costs associated with acquisitions, other adjusting costs, non-cash equity compensation, (gain) loss on foreign currency hedge, net (gain) loss on interest rate swaps and other similar items.

    Adjusted EBITDA should not be considered in isolation or as a substitute for operating profit (loss), net income (loss), or cash flows provided by (used in) operating, investing, and financing activities. However, we believe this measure is useful to investors in evaluating our financial performance because it (1) is widely used by investors in the natural gas and oil industry as an indicator of underlying business performance; (2) helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement; (3) is used in the calculation of a key metric in one of our Credit Facility financial covenants; and (4) is used by us as a performance measure in determining executive compensation. When evaluating this measure, we believe investors also commonly find it useful to assess this metric as a percentage of our total revenue, inclusive of settled hedges, which we refer to as adjusted EBITDA margin.

      Year Ended
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Net income (loss) $ (87,001 ) $ 759,701   $ (620,598 )
    Finance costs   137,643     134,166     100,799  
    Accretion of asset retirement obligations   30,868     26,926     27,569  
    Other (income) expense(a)   (1,257 )   (385 )   (269 )
    Income tax (benefit) expense   (136,951 )   240,643     (178,904 )
    Depreciation, depletion and amortization   256,484     224,546     222,257  
    (Gain) loss on bargain purchases   —     —     (4,447 )
    (Gain) loss on fair value adjustments of unsettled financial instruments   189,030     (905,695 )   861,457  
    (Gain) loss on natural gas and oil properties and equipment(b)   15,308     4,014     93  
    (Gain) loss on sale of equity interest   7,375     (18,440 )   —  
    Unrealized (gain) loss on investment   4,013     (4,610 )   —  
    Impairment of proved properties(c)   —     41,616     —  
    Costs associated with acquisitions   11,573     16,775     15,545  
    Other adjusting costs(d)   22,375     17,794     69,967  
    Loss on early retirement of debt   14,753     —     —  
    Non-cash equity compensation   8,286     6,494     8,051  
    (Gain) loss on foreign currency hedge   —     521     —  
    (Gain) loss on interest rate swap   (190 )   2,722     1,434  
    Total adjustments $ 559,310   $ (212,913 ) $ 1,123,552  
    Adjusted EBITDA $ 472,309   $ 546,788   $ 502,954  
    Pro forma adjusted EBITDA(e) $ 548,570   $ 553,252   $ 574,414  
    1. Excludes $1 million in dividend distributions received for our investment in DP Lion Equity Holdco during the year ended December 31, 2024.
    2. Excludes $27 million, $24 million and $2 million in cash proceeds received for leasehold sales during the years ended December 31, 2024, 2023 and 2022, respectively, less $14 million and $4 million of basis in leasehold sales for the years ended December 31, 2024 and 2023, respectively.
    3. For the year ended December 31, 2023, the Group determined the carrying amounts of certain proved properties within two fields were not recoverable from future cash flows, and therefore, were impaired.
    4. Other adjusting costs for the year ended December 31, 2024, were primarily associated with legal and professional fees related to the U.S. listing, legal fees for certain litigation, and expenses associated with unused firm transportation agreements. For the year ended December 31, 2023, these costs were primarily related to legal and professional fees for the U.S. listing, legal fees for certain litigation, and expenses for unused firm transportation agreements. For the year ended December 31, 2022, these costs mainly included $28 million in contract terminations, which enabled the Group to secure more favorable future pricing, and $31 million in deal breakage and/or sourcing costs for acquisitions.
    5. Includes adjustments for the year ended December 31, 2024 for the Oaktree, Crescent Pass, and East Texas II acquisitions to pro forma their results for the full twelve months of operations. Similar adjustments were made for the year ended December 31, 2023 for the Tanos II Acquisition, as well as for the year ended December 31, 2022 for the East Texas I and ConocoPhillips acquisitions.

    Total Revenue, Inclusive of Hedges and Adjusted EBITDA Margin

    As used herein, total revenue, inclusive of settled hedges, accounts for the impact of derivatives settled in cash. We believe that total revenue, inclusive of settled hedges, is a useful measure because it enables investors to discern our realized revenue after adjusting for the settlement of derivative contracts.

    As used herein, adjusted EBITDA margin is calculated as adjusted EBITDA expressed as a percentage of total revenue, inclusive of settled hedges. Adjusted EBITDA margin encompasses the direct operating costs and the portion of general and administrative costs required to produce each Mcfe. This metric includes operating expense, employee costs, administrative costs and professional services, and recurring allowance for credit losses, which cover both fixed and variable costs components. We believe that adjusted EBITDA margin is a useful measure of our profitability and efficiency, as well as our earnings quality, because it evaluates the Group on a more comparable basis period-over-period, especially given our frequent involvement in transactions that are not comparable between periods.

      Year Ended
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Total revenue $ 794,841   $ 868,263   $ 1,919,349  
    Net gain (loss) on commodity derivative instruments(a)   151,289     178,064     (895,802 )
    Total revenue, inclusive of settled hedges $ 946,130   $ 1,046,327   $ 1,023,547  
    Adjusted EBITDA $ 472,309   $ 546,788   $ 502,954  
    Adjusted EBITDA margin   50 %   52 %   49 %
    Adjusted EBITDA margin, excluding Next LVL Energy   51 %   53 %   50 %
    1. Net gain (loss) on commodity derivative settlements represents the cash paid or received on commodity derivative contracts. This excludes settlements on foreign currency and interest rate derivatives, as well as the gain (loss) on fair value adjustments for unsettled financial instruments for each of the periods presented.

    Free Cash Flow

    As used herein, free cash flow represents net cash provided by operating activities, less expenditures on natural gas and oil properties and equipment, and cash paid for interest. We believe that free cash flow is a useful indicator of our ability to generate cash that is available for activities beyond capital expenditures. The Directors believe that free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments, and pay dividends.

      Year Ended
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Net cash provided by operating activities $ 345,663   $ 410,132   $ 387,764  
    LESS: Expenditures on natural gas and oil properties and equipment   (52,100 )   (74,252 )   (86,079 )
    LESS: Cash paid for interest   (123,141 )   (116,784 )   (83,958 )
    Free cash flow $ 170,422   $ 219,096   $ 217,727  
    Cash generated through divestitures of land $ 40,986   $ 28,160   $ 2,472  
    Adjusted free cash flow $ 211,408   $ 247,256   $ 220,199  


    Net Debt and Net Debt-to-Adjusted EBITDA (“Leverage”)

    As used herein, net debt represents total debt as recognized on the balance sheet, minus cash and restricted cash. Total debt includes borrowings under our Credit Facility and borrowings under, or issuances of, our subsidiaries’ securitization facilities. We believe net debt is a useful indicator of our leverage and capital structure.

    As used herein, net debt-to-adjusted EBITDA, also referred to as “leverage” or the “leverage ratio,” is calculated by dividing net debt by adjusted EBITDA. We believe this metric is a crucial measure of our financial liquidity and flexibility, and it is also used in the calculation of a key metric in one of our Credit Facility financial covenants.

      As of
      December 31,
    2024    		 December 31,
    2023    		 December 31,
    2022
    Total debt(a) $ 1,693,242   $ 1,276,627   $ 1,440,329  
    LESS: Cash   5,990     3,753     7,329  
    LESS: Restricted cash(b)   46,269     36,252     55,388  
    Net debt $ 1,640,983   $ 1,236,622   $ 1,377,612  
           
    Adjusted EBITDA $ 472,309,000   $ 546,788,000   $ 502,954,000  
    Pro forma adjusted EBITDA(c) $ 548,570   $ 553,252   $ 574,414  
    Net debt-to-pro forma adjusted EBITDA(d) 2.9x
    		   2.2x
    		   2.4x
    		  
    1. Includes adjustments for deferred financing costs and original issue discounts, consistent with presentation on the Statement of Financial Position.
    2. The increase of restricted cash as of December 31, 2024, is due to the addition of $21 million and $3 million in restricted cash for the ABS VIII Notes and ABS IX Notes, respectively, offset by $7 million and $9 million for the retirement of the ABS III Notes and ABS V Notes, respectively.
    3. Includes adjustments for the year ended December 31, 2024 for the Oaktree, Crescent Pass, and East Texas II acquisitions to pro forma their results for the full twelve months of operations. Similar adjustments were made for the year ended December 31, 2023 for the Tanos II Acquisition, as well as for the year ended December 31, 2022 for the East Texas I and ConocoPhillips acquisitions.
    4. Excludes long-term plant financing of $30 million for the year ended December 31, 2024.

    The MIL Network –

  • MIL-OSI Australia: Research breakthrough offers hope for Canola growers

    Source: New South Wales Department of Primary Industries

    17 Mar 2025

    Researchers from the NSW Department of Primary Industries and Regional Development (DPIRD) have opened the door to enhancing canola production in challenging growing environments, after identifying a key gene that helps protect plants from manganese toxicity in acidic soils.

    Soil acidity is a significant challenge for crop production in Australia, and crops like canola are particularly vulnerable to the adverse effects of acidic soils which can limit growth and reduce yields.

    Dr Harsh Raman, Senior Principal Research Scientist at NSW DPIRD, said the the discovery is the result of five years of dedicated research by an international team of scientists, with NSW DPIRD leading the effort.

    “Soil acidity is a global issue, severely limiting crop production and affecting a huge 13.7 million hectares in NSW alone,” Dr Raman said.

    “After conducting a range of experiments in controlled field conditions, NSW DPIRD has successfully cloned the specific gene responsible for manganese tolerance in acidic soils.”

    “We have also uncovered new insights into the genetic networks that influence this trait, which will enable the research team to develop practical methods for selecting canola plants with manganese tolerance based on morphological traits and molecular markers.”

    According to Dr Raman, the discovery could lead to higher productivity and improved profitability for Canola growers.

    “By understanding how canola plants cope with excessive manganese in acidic soils, researchers and crop breeding companies can now work towards developing new crop varieties that are more resilient to thestresses of manganese toxicity. ,” Dr Raman said.

    While manganese is an essential nutrient for plant growth, excessive amounts in acidic soils (pH <5) can lead to severe toxicity which can stunt plant growth and reduce crop yields. This is most common in waterlogged soils or those with poor drainage, particularly under high-temperature conditions.

    Dr. Raman said that while researchers still recommend a regular application of lime to manage high-acidity soils, manganese tolerance is a valuable enhancement trait for canola varieties by allowing growers to get about their business without having to wait for the lime to ameliorate into the soil.

    “Thanks to this research, canola farmers will no longer exclusively need to invest significant time and money into lime applications and wait for amelioration to proceed before they can grow high yield crops.

    Now, by unlocking the secret to cultivating varieties that are tolerant to acidic soils, growers can grow high yielding canola whilst applying lime to improve their soils long term PH, increasing productivity and profitability.”

    “As farmers face increasing challenges  such as soil degradation, this research provides a promising new tool to enhance crop resilience and secure long-term food production,” Dr Raman said.

    The project was supported by the NSW Department of Primary Industries and Regional Development, Grains Research and Development Cooperation, Oil Crops Research Institute China, Monash University, ARC Training Centre for Future Crops Development at Australian National University and Wagga Wagga, and INRA France.

    The research findings were recently published in Plant Cell and Environment, available at (Genome‐Wide Association Study Elucidates the Genetic Architecture of Manganese Tolerance in Brassica napus – Raman – Plant, Cell & Environment – Wiley Online Library).

    Media contact: pi.media@dpird.nsw.gov.au

    Vision pack available at https://tinyurl.com/5n7f56ca

    MIL OSI News –

  • MIL-OSI Australia: Press conference in Sydney

    Source: Australian Executive Government Ministers

    BILAL EL-HAYEK: Well, good morning everyone. I want to welcome you here to the City of Canterbury Bankstown to this important announcement. Well, Bankstown is booming. We have 14,000 new homes coming to Bankstown, brand new metro, a state of the art hospital. So this fantastic announcement comes in at a perfect timing when we are planning for our open space. I actually want to welcome all the ministers as well of course, the Federal Minister, Catherine King, Paul Scully, Rose Jackson, and the candidate for Banks, Zhi Soon.

    I’ll now hand over to the Minister, Catherine King. Minister.

    CATHERINE KING: Thank you. Thanks, Mayor. And it’s fantastic to be here today alongside my state counterparts, Paul Scully and Rose Jackson. Both planning and housing are pretty critical to the announcement we’re making today. And of course, Zhi Soon, our fantastic candidate for the federal seat of Banks in the upcoming federal election, whenever that may be.

    Well, today we’re announcing alongside the New South Wales Government that as part of the Albanese Labor Government’s Housing Support Program, we’re providing over $300 million to New South Wales to bring on stream over 60,000 homes, including very quickly, over 100 social homes that are incredibly important across the whole of New South Wales. What this money goes towards is the enabling infrastructure to bring those developments to fruition, so things like the road infrastructure, water, sewerage, other utilities. But also more importantly, we’re also funding community infrastructure. As you can see from the development behind me, it isn’t just about building houses. It’s actually about building green space, good places for people to be able to walk through on their way to work, get that really sense of place, but also be able to bring their kids and make sure that they are cooler places for people to be able to engage in recreation and social activities. So part of that $300 million we’re announcing today is, here in Bankstown, a further community space. Again, it’s not just about having well-located homes around train stations, around Metro. It’s really about also making sure these are great and liveable places.

    The money is being stretched right across the state, so Parramatta, Kellyville, Bella Vista, community spaces there, and as I said also, social housing in Albury. This program is part of over almost $2 billion that the Federal Government is investing in that infrastructure. We’re doing that now. The money is flowing. That infrastructure is being built to bring those 60,000 additional homes on stream here in New South Wales. It forms part of our $32 billion commitment to really build over 1.2 million homes across the whole of the country, and my part of it is building the infrastructure.

    I might hand over to Minister Scully to say a few words and then Minister Jackson.

    PAUL SCULLY: Thank you, Minister King. And thank you, Mayor Bilal, for inviting us here today to Bankstown.

    As you can see, there’s a lot of activity going on in Bankstown. As the Mayor just said, Bankstown is booming. As part of the New South Wales Government’s work to build more housing, our focus is building better communities. When we did the master planning and rezoned areas around the Transport Oriented Development’s accelerated precincts, we made it very, very clear that we were not just building housing, we were building communities. That means vibrant communities with access to jobs, access to transport, and access to good public spaces. This financial support, the $228.2 million from the Commonwealth Government to go towards accelerating the delivery of those new public spaces, will be an important contribution to that work that the New South Wales Government is undertaking.

    Together, in the first tranche, Bankstown’s accelerated precinct, along with the accelerated precincts in Kellyville and Bella Vista, have been identified for those priority public spaces. We’ll continue to work with the council here in Canterbury Bankstown, through the Parks for People program, to deliver those public spaces to make sure that alongside the homes, alongside the jobs, alongside the transport activity that’s going here, is going to be the public spaces that people need, green spaces for people to meet, to recreate, to engage with other parts of the community. It’s really vital that we look at those areas not just from an environmental perspective, but the social benefit they bring.

    I’ll leave some further comments on the social housing part to Minister Jackson, but I’d just like to acknowledge the hard work of the Mayor and the council here at Canterbury Bankstown. They have been in lockstep with the New South Wales Government right the way through this process, identifying and recognising that Bankstown and Canterbury are great places to live and will continue to be, but there are even better places, courtesy of this contribution from the Albanese Government, to make sure that we can get those green spaces underway, get those recreational spaces underway as we deliver new homes and as we complete the work on the metro here. Minister Jackson.

    ROSE JACKSON: We know that New South Wales is in a housing crisis. The number one issue that’s raised with us when we’re talking to the community is cost of living. That is the thing that the community is absolutely determined that governments understand is hitting them hard, and we know that part of addressing cost of living is to delivering more affordable housing. It’s simply too expensive to find a place to buy and rent. What the State Government and the Federal Government are determined to do is put our money where our mouth is when it comes to addressing that crisis. So the State’s put $5.1 billion into building more social housing, and we are incredibly thrilled to have a federal partner that is willing to come to the table and contribute as well. This announcement alone is another $70 million to build social housing. We know that we need growth. We know we need more homes. But it’s not just any old growth, it’s good growth. It’s growth that delivers better, more diverse communities. And yes, that’s infrastructure, that’s green space, that’s community amenity, that’s transport. But it’s also diverse types of homes, and social and affordable housing is part of that mix.

    With this $70 million, we’re going to be able to bring hundreds of new social housing properties online. We’ve already started that work from east to west, from Randwick to Campbelltown. We’re looking at acquiring homes in places like Lismore and Tweed as well – areas recently hit by Tropical Cyclone Alfred. So this is exactly the kind of working together between state and federal governments that are going to be necessary to confront the housing crisis.

    It’s also really important to call out our local government partners, local councils, we’ve always been up front, have been a little bit of a mixed bag when it’s come to supporting housing. Not Canterbury-Bankstown – this is a council that is deeply invested in building a great community here, and it’s fantastic to have Mayor Bilal El-Hayek here alongside us to demonstrate all three levels of government working together. This is yet more money to build the homes that people need, that security of a roof over your head. We need a federal government that is willing to stick to the course when it comes to supporting housing, and the State Government is ready to stand right alongside it, using the funding to deliver homes that we know are desperately needed in this state.

    CATHERINE KING: Happy to take any questions.

    JOURNALIST: Well, may I ask about the allegations yesterday [indistinct] …

    CATHERINE KING: [Interrupts] Sure – have you’ve got any questions on this- the announcement today yet? Nope, okay. Happy to take further- other questions, sure.

    JOURNALIST: … allegations last night on 60 Minutes and Nine papers about more corrupt and [indistinct], specifically in Victoria. I note one area of Victoria on the North East Link Road where federal taxpayers have already committed $3 billion to this project. How can federal taxpayers know that there won’t be any sort of- or, you know, if that money’s being overinflated, or if there’s any sort of corruption or wrongdoing in that process?

    CATHERINE KING: Yeah, so we have zero tolerance for criminal activities on any work site, and especially on our building work sites. We have already taken strong action against the CFMEU by placing it in administration, and the administrator continues to do his work. When this broke some time ago, in terms of the CFMEU, I was in the process of negotiating new federated funding agreements with every state and territory. In those agreements, we have inserted new clauses that require states and territories to ensure they are- that we are receiving value for money on every single project where the Commonwealth is investing, that we are prioritising businesses that engage in ethical business practices. And I also wrote to every state and territory minister asking their assurance that proper checks are being put in place to ensure that- again, that value for Australian taxpayer dollars, and if there is any criminal activity seen on any of the sites where the Commonwealth is investing that that immediately be reported both to the administrator, to the police and also to my department. And we’ll continue to work with every state and territory in relation to that.

    But I want to make it very clear: this is hard fought money. Taxpayers don’t want to see their money going to criminals, and that is incredibly important that every state and territory ensures that it’s got the assurance processes in place to make sure that we are getting value for money for every taxpayer dollar.

    JOURNALIST: Did the Federal Government conduct its own audit of the $3 billion in this project?

    CATHERINE KING: Well, again, what we have asked quite specifically is that every state and territory give us those assurances. I saw the program on 60 Minutes last night. If there is more that needs to be done, I’ll have a look at that. But what we have asked is every state and territory to assure us that they have the processes in place to make sure that this activity is not being undertaken. Thanks everyone.

    MIL OSI News –

  • MIL-OSI New Zealand: Union Name Change – Our union’s new name: ‘FIRST Union’ Becomes ‘Workers First Union’

    Source: Workers First Union

    Workers First Union is pleased to announce that the union has now formally changed its name from ‘FIRST Union’ to ‘Workers First Union’ (or ‘Workers First’, for short) following a vote by delegates at the union’s Annual General Meeting in December 2024.
    Dennis Maga, Workers First General Secretary, said he was proud that the union was making its mission clear with the new name.
    “For too long, employers have been putting workers second or worse, with fair wage rises and workplace wellbeing ranking last after a long list of shareholders, creditors and managers,” said Mr Maga.
    “I’m excited to enter the next era with a new name befitting of our union’s work and purpose – we put workers first.”
    FIRST Union was formed in 2011 through the merger of the National Distribution Union (NDU) and the Finance Sector Union of New Zealand (Finsec). NDU represented workers in the retail, distribution, and textile industries, while Finsec represented employees in banking and finance. The new Workers First Union has since grown to cover over 32,000 workers across retail, finance, transport, logistics and manufacturing. The union is an affiliate of the Council of Trade Unions(CTU) but unaffiliated to any political parties.
    Mr Maga said that the union had sought to change its name to distinguish the organisation from similarly named business entities and encapsulate the union’s purpose more clearly.
    “This change reflects what our members have always known: our union is here to fight for them, whether in wage bargaining, on the picket line, or in the halls of Parliament,” said Mr Maga.
    “The new name embodies the interests of working people in New Zealand and is particularly apt at a time when a far-right Government is abandoning the working class in favour of an illusory ‘growth’ model for their corporate backers.”
    “Workers in Aotearoa face serious challenges ahead, from increasing workplace automation to stagnating wages, but our union is built on collective strength, and we will meet these challenges head-on in 2025 and beyond.”
    Background information
    – The union’s main website address is now workersfirst.nz

    MIL OSI New Zealand News –

  • MIL-OSI Australia: Airports report record aeronautical revenues despite slower growth in passenger numbers

    Source: Australian Competition and Consumer Commission

    Click to enlargeAustralia’s four largest airports, Brisbane, Melbourne, Perth and Sydney, each reported their highest ever aeronautical revenues in 2023-24, the ACCC’s latest Airport Monitoring Report shows.

    The 24.3 per cent increase in revenues to $2.6 billion occurred despite the four major airports collectively handling fewer passengers than before the pandemic. While domestic and international passengers grew by 13.7 per cent to 114.6 million since 2022-23, passenger numbers remained 4.7 per cent below 2018-19 levels.

    “The increase in aeronautical revenues in 2023-24 was driven in large part by the continued recovery in international passenger numbers, which rose by 32.1 per cent at the four airports monitored in our report,” ACCC Commissioner Anna Brakey said.

    “Domestic passenger numbers also grew by 6.7 per cent.”

    Sydney, Brisbane and Melbourne airports also substantially increased their operating profits from aeronautical activities in 2023-24.

    “Sydney Airport was once again clearly the most profitable of the four major airports for aeronautical services in 2023-24, both in aggregate and on a per-passenger basis,” Ms Brakey said.

    In 2023-24 Sydney Airport recorded an aeronautical operating profit of $570.5 million, which represented a 20.2 per cent return on its aeronautical assets. Sydney Airport advised that both its aeronautical revenues and operating profits in the year were inflated by back-payments received during the 2023-24 financial year from its contractual agreements with airlines. The agreements started on 1 July 2022, but the terms were not agreed to until the 2023-24 financial year.

    Brisbane and Melbourne airports reported aeronautical operating profits of $194.7 million and $198.9 million respectively, despite Brisbane Airport catering to far fewer passengers than Melbourne Airport. Both airports reported a 64.1 per cent increase in aeronautical operating profit in 2023-24.

    Perth Airport was the only monitored airport to report a fall in aeronautical profits, down by 29.1 per cent to $70.7 million after a significant increase in security and depreciation expenses.

    Car parking profits and ‘landside access’ revenues up

    Operating profits from car parking grew for all four airports in 2023-24. Brisbane Airport made the largest profits, increasing by 21.1 per cent to $113.4 million. Melbourne Airport made an operating profit of $108.1 million from car parking, followed by Sydney Airport with $95.6 million and Perth Airport with $70.7 million.

    All four monitored airports reported operating profit margins above 60 per cent for the second year in a row for their car parking operations.

    “Car parking remains a very profitable business for the monitored airports as they report strong demand for parking,” Ms Brakey said.

    “Brisbane Airport made an operating profit of 76.6 cents for every dollar of revenue it collected from car parking.”

    Sydney Airport was the most expensive for 30 to 60 minute parking and parking for up to 24 hours at the terminal, while Melbourne Airport was the cheapest in both categories.

    Long-term parking at a distance from the terminal booked online was most expensive at Perth and Sydney airports and cheapest at Melbourne Airport.

    “To save money, motorists are encouraged to book online, if possible, instead of paying the drive-up rates, and should consider using free waiting zones at the airports,” Ms Brakey said.

    Revenues from landside transport access services, such as rideshare operators, taxis and buses, grew by 18 per cent to $69.6 million, as vehicle numbers rebounded. All four airports continued to report a growth in rideshare services.

    Airports maintain their ‘good’ quality of service rating, despite falling satisfaction from airlines

    All four airports maintained an average overall rating of ‘good’ for the quality of service and facilities in 2023-24.

    These results were mainly due to high ratings by passengers, continuing consistent trends over the last 10 years.

    Ratings by airlines generally fell, and all four airports received only a ‘satisfactory’ result. The most common airline concerns related to aircraft parking facilities, baggage facilities, common user check-in facilities, aerobridges and public amenities.

    “The airports all maintained their ‘good’ rating for quality of service, which is based on surveys of passengers and airlines, as well as objective measures such as the number of check-in kiosks per passenger,” Ms Brakey said.

    “However, the falling satisfaction from airlines indicates the airports have some work to do.”

    Airports have recommenced investment after Covid

    After years of relatively little investment due to the pandemic, the airports have invested $985.1 million in aeronautical facilities in 2023-24, a figure set to increase in coming years.

    Melbourne airport’s $502.3 million investment accounted for more than half the total investment in aeronautical assets in 2023-24. This included work on runway overlays, taxiways and terminals, such as the replacement of passenger screening equipment as well as works to resurface the north-south runway and replace the lighting system.

    Other major projects underway, or recently announced, include new runways for Melbourne and Perth, new terminals for Perth and Brisbane, upgrades to terminals in Brisbane, Sydney and Melbourne.

    A new airport will also open at Western Sydney in 2026.

    “While the four major airports held back on investment during the pandemic period, this is starting to change now there is more certainty around demand for travel,” Ms Brakey said.

    “These significant capital works should help increase capacity at our major airports, leading to more flight options for travellers.”

    Background

    Under direction from the Australian Government, the ACCC monitors the prices, costs and profits of aeronautical and car parking services at Australia’s four largest airports. The ACCC also monitors the quality of these services under the Airports Act.

    The possible ratings for airport quality of services are ‘very poor’, ‘poor’, ‘satisfactory’, ‘good’ or ‘excellent’.

    The ACCC measures operating profit by earnings before interest, taxes and amortisation (EBITA). Operating profit margin is EBITA as a percentage of revenue.

    Aeronautical operations are those that directly relate to providing aviation services, including runways, aprons, aerobridges, departure lounges and baggage handling equipment.

    MIL OSI News –

  • MIL-OSI Australia: How pumped hydro can be a viable large-scale energy asset for private investors

    Source: Allens Insights

    Financing the next generation of PHES projects 11 min read

    Interest in pumped hydro energy storage (PHES) continues to grow as the need for affordable, long-term, firm and weather-independent dispatchable electricity becomes increasingly critical to Australia’s energy transition. However, its high upfront capital costs and complex planning, procurement, and delivery processes, in contrast with its low operational expenses, is prompting debate over its viability as a mainstream asset class and optimal funding strategies.

    PHES assets in Australia are predominantly government-owned, reflecting an era when electricity generation was seen as a public utility and a national asset. The privatisation of many segments within the energy sector raises questions about the future ownership and funding of large-scale PHES assets in today’s market-driven environment.

    In this Insight, we explore the challenges and opportunities related to the financing of PHES projects in Australia and outline possible offtake structures to ensure a successful project.

    Key takeaways

    • Government corporations have traditionally owned and procured PHES assets in Australia.
    • Significant capital costs, extensive civil engineering, underground works and long lead times have made private sector ownership and access to debt capital markets for PHES challenging.
    • Recent advancements seen in the BESS sector underpinned by the development of innovative funding and offtake structures present a potential pathway by which PHES could follow and become a mainstream asset class.
    • In NSW in particular, there is significant government support for PHES projects, with the LDS LTESA and the new Energy Security Corporation focusing on investing in long-duration storage, and in South Australia the proposed Firm Energy Reliability Mechanism.

    Background

    Australia has a PHES fleet of approximately 1.6 GW across the Wivenhoe, Tumut 3 and Shoalhaven power stations, with an additional 2.2 GWs of generation expected to come online with the completion of the Snowy 2.0 expansion project. There is also a significant pipeline of privately procured PHES projects in various stages of feasibility and planning.

    The scale, capital intensity and inherent complexities of delivering a PHES project has meant that, to date, every project that has come to market in Australia has been funded using some form of government support. The most recent example is the Kidston PHES, which reached financial close in 2021. Whilst a privately owned asset, the project was funded with a combination of equity capital, a government grant and a concessional loan.

    A question therefore arises as to whether PHES should continue to seen as public infrastructure necessitating government investment, or market evolution will result in future PHES being funded exclusively by the private sector.

    Could a PHES be privately funded?

    In our view, yes, though in the short term, the success of PHES will depend on a combination of both private and public sector investment. The private sector faces a unique set of challenges when it comes to the development and funding of PHES projects.

    PHES projects have long lead times and are capital-intensive. Upfront development costs are very high, and the construction period typically ranges between three to four years. Up to 80% of asset-life costs can be on upfront capital expenditure, which typically runs into several billions of dollars. As a consequence, PHES is beyond the investment horizons of many private sector investors and the future success of the sector will be contingent on investors gaining access to debt capital markets.

    While the recent $3.5 billion debt financing of Snowy 2.0 is an encouraging example of the willingness of mainstream financiers to lend to PHES, it is a government-procured project backed by an AAA-rated counterparty. Privately procured PHES projects with more limited funding sources will be subject to much more stringent credit requirements. Recent examples of cost and time delays on major PHES projects and the trend towards collaborative contracting and pricing models represent potential challenges from a bankability perspective.

    Prospective financiers will focus heavily on the developer’s chosen procurement model to ensure that there is firm pricing and transferred risk to limit volatility and exposure. Where there are elements of flexibility or uncapped pricing (for example as seen with approaches to managing geotechnical risk on recent government projects), we are seeing developers seeking to forward-solve these issues by implementing robust risk mitigation measures, including, alternative contracting methods, highly structured delay and performance liquidated damages regimes and intricate risk allocation arrangements.

    In addition to enhanced procurement regimes, prospective financiers to PHES projects have, through market soundings, also indicated that highly conversative modelling assumptions and tighter financing terms will be required. As seen with other nascent renewables assets classes during their ascendancy (such as wind, solar and now BESS), developers will likely be required to also build in large contingency packages, contingent undrawn lines, accept front-ended repayment profiles, more stringent cash sweep and upside sharing mechanisms and lower gearing levels.

    Access to debt capital markets will also be contingent on investors demonstrating that PHES as an asset class is commercially viable in the context of private ownership. Traditionally, governments have adopted a model of utilising PHES projects as a form of system support (ie where there has been a shortfall of supply during periods of peak demand). In contrast, private sector investors will need to monetise projects and demonstrate positive price differentials between pumping and generation.

    Owing to the capital cost of PHES, the initial wave of privately held projects will be financed utilising multi-source funding structures. At least initially, it is expected that multilateral agencies which are spearheading Australia’s push to net zero, such as ARENA, the CEFC and NAIF, will provide concessional/grant funding alongside mainstream commercial debt. The limited pool of civil contractors with PHES experience in Australia, combined with a lack of a domestic OEM market will likely result in developers satisfying key credibility requirements for international export credit agencies to also participate in the financing of Australian PHES projects.

    Unlocking private funding for PHES projects

    Despite the challenges in financing PHES assets, recent market developments and potential future changes could pave the way for greater private funding of PHES projects.

    The sheer scale of PHES projects means there is a limited pool of available investment-grade offtakes, and as a consequence, many pipeline PHES developers are seeking to underpin project economics through government revenue underwriting schemes such as the Long-term Energy Support Agreements (LTESA) and Capacity Investment Scheme Agreements (CISA).

    While initially met with scepticism, these agreements are starting to be viewed favourably by financiers, representing a fixed revenue line against which debt sizing can be made. This has been demonstrated by the successful project financings of the Orana BESS project in mid-2024 (the first standalone financing of an LTESA) and recently EnergyAustralia’s Wooreen BESS project (the first standalone financing of a CISA). Both projects also demonstrate the potential upside these products offer to developers, with the revenue underwrite providing scope to trade all or part of a project’s capacity in the merchant market.

    A potential challenge however is whether or not the LTESA and CIS programs are in fact ‘fit-for-purpose’ in the context of PHES, owing to their capital intensity and the quantum that these government support agreements will have to underwrite over the long term. There is a view by some market participants that a more traditional model, whereby the government acquires an equity interest in projects, would be better suited to PHES and would go some way towards solving a number of the key bankability concerns pipeline developers are currently grappling with.

    The NSW Government has sought to address this issue through the Long Duration Storage (LDS) LTESA, which provides a tailored agreement for LDS projects (including PHES) to account for the fundamental differences in their operational and market context.

    Key features of the LDS LTESA that benefit PHES projects are:

    • an underwriting mechanism that grants the operator a series of two-year options to access a variable annuity payment in the form of a top-up to net operational revenue – rather than short-term swaps, which are granted under the generation LTESA;
    • a minimum availability threshold of 97% rather than a minimum generation guarantee; and
    • a contract term of up to 40 years for PHES projects, compared to 20 years for a generation LTESA and 10 years for firming LTESAs.

    The ACEN Phoenix PHES project was recently awarded an LDS LTESA, marking the first time a PHES project has been awarded an LTESA. AEMO Services has indicated that the next LDS tender round will open in the second quarter of 2025 and is encouraging projects with short lead times to participate in order to meet the 2030 minimum objective. This directive does not rule out PHES projects, with many of the PHES currently under development in Australia having expected completion dates of 2030 or earlier. PHES projects with longer lead times are encouraged to participate in future LDS tenders to help meet the 2034 minimum objective.

    While there is no active mechanism in any other jurisdiction, the South Australian Government has announced its proposed Firm Energy Reliability Mechanism (FERM), which is similar to the NSW LDS LTESA tenders and Federal Capacity Investment Scheme, providing a revenue underwrite for long-duration capacity projects. All existing and new generators in South Australia with long-duration firm capacity >30MW (excluding coal) and that can dispatch for a period of at least eight continuous hours must participate in the FERM process, but are not required to bid for financial contracts. The South Australian Government is considering responses to the FERM and is expected to release an update in 2025. With NSW as the frontrunner in supporting LDS projects and SA proposing some support, other jurisdictions may consider similar regimes based on their progress.

    In June 2024, the NSW Energy Security Corporation (ESC) was established to accelerate the state’s renewable energy transition. In February 2025, the government announced the first Investment Mandate for the ESC. The Investment Mandate sets out how the ESC will invest in renewable energy projects where private sector investments alone are insufficient. The ESC has been allocated $1 billion and will co-invest with private investors on PHES, as well as large-scale batteries, community batteries and virtual power plants.

    The Investment Mandate did not provide a breakdown of how the $1 billion would be allocated amongst these projects. However, with a clear mandate to invest in PHES projects, there is hope that the ESC may be able to help address some of the challenges faced by private investment as set out above.

    PHES is often referred to as a ‘water battery’. It is therefore unsurprising that revenue models which have underpinned the recent meteoric rise of the BESS market are similarly being adopted by PHES developers who are currently in the planning phase.

    In particular, the rise of virtual offtake arrangements (ie where the offtaker makes virtual nominations that are effectively separate from the physical operation of the asset). These structures (and the significant capacity size of PHES) allow a developer to retain day-to-day control over the underlying PHES asset, split capacity across multiple offtakers, provide potential for greater equity upside (although also give rise to greater risk on the downside), and importantly can be treated off-balance sheet from an accounting perspective.

    We are anticipating a further evolution of the virtual offtake market, particularly if storage projects can secure an underlying LTESA or CISA, which can give them a base level of security to trade the remaining capacity. Revenue sharing, caps and firmed supply (or a mixture of a number of structures) could be possible, and we expect the PHES market to take inspiration from the BESS market.

    Actions you can take now

    If you are considering entering the PHES space and exploring funding options, it is important to:

    • engage with financiers (both private and government, and concessional providers) early;
    • engage external counsel early and seek guidance on key bankability issues throughout the planning and feasibility phases;
    • develop your revenue stack during the planning phase (in consultation with financiers) and take into consideration the quickly evolving offtake market in the BESS sector;
    • for those projects in NSW:
      • prepare for the next LDS LTESA round which is slated to be undertaken before the second half of this year; 
      • engage with the ESC to explore how it will invest its $1 billion in the context of a PHES project; and
    • for those projects in South Australia, engage with the South Australian government and monitor for updates on the FERM process.

    MIL OSI News –

  • MIL-OSI Australia: About the Register of Foreign Ownership of Australian Assets

    Source: Australian Department of Revenue

    The Register’s role

    Foreign investment is essential to Australia’s prosperity. It helps to build our economy and enhance the wellbeing of Australians by supporting financial growth.

    The Register of Foreign Ownership of Australian AssetsExternal Link was introduced to provide transparency and extract information which we use to report on who is investing in Australian assets.

    The Register commenced operating on 1 July 2023. This Register replaced all other registers.

    Register functions

    The Register:

    • replaces existing foreign investment registers we manage (relating to agricultural and residential land, and water interests)
    • expands on assets to be registered
    • provides a streamlined experience for foreign persons to manage their investment affairs
    • supports compliance with Australia’s foreign investment framework
    • increases the government’s visibility of foreign investments made in Australia.

    Information the Register holds

    The Register holds details about foreign ownership of Australian assets, including:

    For information on registering assets other than residential property, see Steps to invest in Australian non-residential assets.

    Who is responsible for administering the Register

    The role of the Commissioner of Taxation as Registrar

    The Commissioner of Taxation is the Registrar responsible for administering the Register, under the Commonwealth Registers (Appointment of Registers) Instrument 2021.

    The Commissioner was appointed as the Registrar of the Register by the Assistant Treasurer, commencing 29 November 2022.

    The Registrar’s role in administering the Register includes:

    • maintaining accurate records of interests and changes that need to be registered for the purposes of administration of the foreign investment laws, such as case management and compliance
    • accurate reporting to government of foreign ownership in Australia.

    The visibility of interests held by foreign persons in specified assets in Australia will also inform future policy development by government.

    How the information on the Register is used

    The Registrar will take steps to protect personal information they hold about individuals against loss, unauthorised access, use, modification or disclosure and other misuse.

    Information on the Register can be used, recorded or disclosed for any purpose that protected information can be used under Division 3 of Part 7 of the FATA. Secrecy provisions apply to the information disclosed or obtained under or for the purposes of the FATA.

    It is an offence under section 128 of the FATA for a person to disclose protected information. That is unless the disclosure is permitted either under section 130V of the FATA or under one of the exceptions in Division 3 of Part 7 to the FATA.

    There are safeguards to protect an individual’s right to privacy and this applies to the information collected by the Registrar. In particular, the Registrar complies with obligations under the Australian Privacy Principles (APPs) contained in the Privacy Act 1988 and records authorities issued by the National Archives of Australia.

    Supporting legislation and reforms

    For more information, see:

    MIL OSI News –

  • MIL-OSI Australia: Registration of commercial land for foreign investors

    Source: Australian Department of Revenue

    Registering an asset

    If you are a foreign investor, you or your authorised representative must register your Australian asset after both of the following has occurred:

    You register your asset using Online services for foreign investorsExternal Link. Registration is free.

    You must also register a legal interest as lessee in a lease giving rights to occupy commercial land if the term of the lease (including any extension or renewal) is reasonably likely to exceed 5 years, at the time the interest is acquired.

    Registration is required regardless of the value.

    Who must register

    If you are a foreign person and have invested in Australian commercial land from 1 July 2023, you or your authorised representative must register the asset, unless an exemption applies. Generally, the person with the direct legal interest is required to register the commercial land with us, the Australian Taxation Office.

    Joint tenants

    If you have direct legal interest and own property jointly with one or more foreign investors, one owner must register the asset first. Other foreign owners in the joint tenant ownership will then add themselves to the registered asset.

    You need to decide which owner will register the property. Once registered, that owner will need to give the other joint tenants the Asset ID. They will then add themselves to the asset.

    Once all foreign owners are added, any owner can access and update the registered asset details.

    Tenants in common

    If the asset is owned with others and assigned specific ownership, each individual foreign person must register the asset with their percentage of ownership.

    When to register

    A foreign person or their authorised representative must register any interest, other than an equitable interest acquired in commercial land that occurred on or after 1 July 2023, within 30 days of either:

    • purchasing commercial land (settlement)
    • becoming a foreign person while holding an interest in commercial land
    • becoming aware they have an interest in commercial land, which has changed in nature from another type of Australian land.

    Exemptions may apply, see Guidance Note 15External Link.

    Settlement is when you can occupy the property if there is a building on it or you can commence building on vacant land.

    How to register your investment in Australian commercial land

    To register, log in to Online services for foreign investors and select Register asset.

    For more information on registering and for joint tenants to add themselves to the asset, see How to register or manage an asset for foreign investors.

    If you own multiple properties, each property must be registered separately.

    Log in to Online services for foreign investors

    If your situation changes

    You’ll need to update your details in Online services for foreign investorsExternal Link if:

    • you are no longer a foreign person, see Guidance Note 2 at foreigninvestment.gov.auExternal Link
    • your contact details change
    • you no longer hold commercial land
    • other Australian land that you hold becomes commercial land
    • the land ceases to be commercial while you are holding it
    • you become a foreign person while holding commercial land
    • details of the registration change, such as partial divestment, title, or use of land.

    If your:

    Penalties and reporting breaches

    If you do not comply with your obligations to give a register notice or keep your details up to date, you may face an infringement notice or civil penalties.

    As a foreign investor, you should know your obligationsExternal Link and comply with Australia’s foreign investment rules. Together with Treasury, we take compliance actionExternal Link if a foreign investor breaches the foreign investment rules.

    If you have information about someone you think may be deliberately breaking our foreign investment rules, you can confidentially report a breach to us.

    If you are having difficulties meeting your obligations, contact us.

    Statistics and reporting

    The Registrar provides a report to the Treasurer about the operation of the Register. They publish aggregate statistics of foreign ownership.

    The reported statistics may include:

    • number of acquisitions and divestments
    • value of foreign held commercial land
    • land use of foreign held commercial land
    • value of foreign held commercial and by country of ownership.

    Only aggregated statistics are included in the report. Privacy restrictions prevent publishing information which may identify an individual or entity.

    You can view the latest report on the Foreign InvestmentExternal Link website.

    MIL OSI News –

  • MIL-OSI Australia: New requirements for Child Care Subsidy providers from 1 April

    Source: Australian Department of Revenue

    All new Child Care Subsidy (CCS) provider approval applicants will need to supply a statement of tax record (STR) to the Australian Government Department of EducationExternal Link. Some existing providers may also be asked to provide an STR. The Department of Education will notify those existing providers who will require an STR.

    The STR demonstrates your satisfactory engagement with the tax system and is required when applying to administer CCS.

    To apply for an STR, use our online services. After you submit your application, you’ll get a receipt and your STR within 4 business days.

    Important tips:

    1. Check your registration: Make sure you have an Australian business number (ABN), tax file number (TFN) and goods and service tax (GST) registration if your income is above the relevant limits.
    2. Review your tax lodgements: Ensure you’ve submitted at least 90% of your income tax returns, business activity statements (BAS), and fringe benefits tax (FBT) due in the past 4 years (or since your tax record started, if less than 4 years).
    3. Address outstanding debts: If you owe $10,000 or more (not including disputed debts), either pay them off or set up a payment plan.

    Taking these steps will help you resolve any tax issues with us before applying for your STR.

    Keep up to date

    We have tailored communication channels for medium, large and multinational businesses, to keep you up to date with updates and changes you need to know.

    Read more articles in our online Business bulletins newsroom.

    Subscribe to our free:

    • fortnightly Business bulletins email newsletterExternal Link
    • email notifications about new and updated information on our website – you can choose to receive updates relevant to your situation. Choose the ‘Business and organisations’ category to ensure your subscription includes notifications for more Business bulletins newsroom articles like this one.

    MIL OSI News –

  • MIL-OSI: Qifu Technology Announces Fourth Quarter and Full Year 2024 Unaudited Financial Results and Raises Semi-Annual Dividend

    Source: GlobeNewswire (MIL-OSI)

    SHANGHAI, China, March 16, 2025 (GLOBE NEWSWIRE) — Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) (“Qifu Technology” or the “Company”), a leading AI-empowered Credit-Tech platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024 and raised semi-annual dividend.

    Fourth Quarter 2024 Business Highlights

    • As of December 31, 2024, our platform has connected 162 financial institutional partners and 261.2 million consumers*1 with potential credit needs, cumulatively, an increase of 11.0% from 235.4 million a year ago.
    • Cumulative users with approved credit lines*2 were 56.9 million as of December 31, 2024, an increase of 11.8% from 50.9 million as of December 31, 2023.
    • Cumulative borrowers with successful drawdown, including repeat borrowers was 34.4 million as of December 31, 2024, an increase of 13.1% from 30.4 million as of December 31, 2023.
    • In the fourth quarter of 2024, financial institutional partners originated 24,814,923 loans*3 through our platform.
    • Total facilitation and origination loan volume*4 reached RMB89,885 million, an increase of 0.4% from RMB89,561 million in the same period of 2023 and an increase of 9.0% from RMB82,436 million in the prior quarter. RMB47,796 million of such loan volume was under capital-light model, Intelligence Credit Engine (“ICE”) and total technology solutions*5, representing 53.2% of the total, an increase of 23.2% from RMB38,798 million in the same period of 2023 and an increase of 5.3% from RMB45,396 million in the prior quarter.
    • Total outstanding loan balance*6 was RMB137,014 million as of December 31, 2024, a decrease of 5.7% from RMB145,270 million as of December 31, 2023 and an increase of 7.3% from RMB127,727 million as of September 30, 2024. RMB79,599 million of such loan balance was under capital-light model, “ICE” and total technology solutions, an increase of 8.6% from RMB73,268 million as of December 31, 2023 and an increase of 7.5% from RMB74,078 million as of September 30, 2024.
    • The weighted average contractual tenor of loans originated by financial institutions across our platform in the fourth quarter of 2024 was approximately 10.00 months, compared with 11.47 months in the same period of 2023.
    • 90 day+ delinquency rate*7 of loans originated by financial institutions across our platform was 2.09% as of December 31, 2024.
    • Repeat borrower contribution*8 of loans originated by financial institutions across our platform for the fourth quarter of 2024 was 93.9%.

    1 Refers to cumulative registered users across our platform.
    2 “Cumulative users with approved credit lines” refers to the total number of users who had submitted their credit applications and were approved with a credit line at the end of each period.
    3 Including 2,799,208 loans across “V-pocket”, and 22,015,715 loans across other products.
    4 Refers to the total principal amount of loans facilitated and originated during the given period. Retrospectively excluding the impact of discontinued service, which did not have and is not expected to have a material impact on our overall business, financial condition, and results of operations.
    5 “ICE” is an open platform primarily on our “Qifu Jietiao” APP (previously known as “360 Jietiao”), we match borrowers and financial institutions through big data and cloud computing technology on “ICE”, and provide pre-loan investigation report of borrowers. For loans facilitated through “ICE”, the Company does not bear principal risk.
    Under total technology solutions, we have been offering end-to-end technology solutions to financial institutions based on on-premise deployment, SaaS or hybrid model since 2023.
    6 “Total outstanding loan balance” refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, excluding loans delinquent for more than 180 days. Retrospectively excluding the impact of discontinued service, which did not have and is not expected to have a material impact on our overall business, financial condition, and results of operations.
    7 “90 day+ delinquency rate” refers to the outstanding principal balance of on- and off-balance sheet loans that were 91 to 180 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under “ICE” and total technology solutions are not included in the delinquency rate calculation.
    8 “Repeat borrower contribution” for a given period refers to (i) the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, divided by (ii) the total loan facilitation and origination volume through our platform during that period.

    Fourth Quarter 2024 Financial Highlights

    • Total net revenue was RMB4,482.3 million (US$614.1 million), compared to RMB4,370.2 million in the prior quarter.
    • Net income was RMB1,912.7 million (US$262.0 million), compared to RMB1,798.8 million in the prior quarter.
    • Non-GAAP*9 net income was RMB1,972.4 million (US$270.2 million), compared to RMB1,825.1 million in the prior quarter.
    • Net income per fully diluted American depositary share (“ADS”) was RMB13.24 (US$1.82), compared to RMB12.18 in the prior quarter.
    • Non-GAAP net income per fully diluted ADS was RMB13.66 (US$1.87), compared to RMB12.35 in the prior quarter.

    9 Non-GAAP income from operations, Non-GAAP net income, Non-GAAP operating margin, Non-GAAP net income margin and Non-GAAP net income per fully diluted ADS are Non-GAAP financial measures. For more information on these Non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

    Full Year 2024 Operational Highlights

    • Total loan facilitation and origination volume*4 in 2024 was RMB321,969 million, representing a decrease of 12.8% from RMB369,132 million in 2023. Loan facilitation volume*4 under Platform Services was RMB170,589 million, an increase of 3.8% from RMB164,321 million in 2023.
    • The weighted average contractual tenor of loans facilitated and originated was 10.05 months in full year 2024, compared with 11.21 months in 2023.
    • Repeat borrower contribution was 93.1% in full year 2024, compared with 91.6% in 2023.

    Full Year 2024 Financial Highlights

    • Total net revenue was RMB17,165.7 million (US$2,351.7 million), compared to RMB16,290.0 million in 2023.
    • Net income was RMB6,248.1 million (US$856.0 million), compared to RMB4,268.6 million in 2023.
    • Non-GAAP net income was RMB6,415.7 million (US$879.0 million), compared to RMB4,454.2 million in 2023.
    • Net income per fully diluted ADS was RMB41.28 (US$5.66), compared to RMB26.08 in 2023.
    • Non-GAAP net income per fully diluted ADS was RMB42.39 (US$5.81), compared to RMB27.22 in 2023.

    Mr. Haisheng Wu, Chief Executive Officer and Director of Qifu Technology, commented, “Although 2024 was a challenging year as macro-economic headwinds persisted, we have made timely adjustments to our operations throughout the year and focused our effort on improving the quality and sustainability of our business. With consistent execution, we closed the year with strong operational and financial results. Throughout 2024, we proactively expanded the scope of our platform services, which makes our business model more resilient and forms a solid foundation for high quality growth in 2025.

    Approximately 58% of the year-end loan balance was under the capital-light model, ICE and total technology solutions. The strong contribution from non-credit risk bearing services helped us mitigate some risks in a challenging environment and demonstrated the efficiency of our platform services. In 2024, we further diversified our user acquisition channels and in the fourth quarter, approximately 47% of our new credit line users were acquired through embedded finance channels. Meanwhile, we continued to solidify our relationships with financial institution partners. With record-setting ABS issuance, we further optimized our funding structure.

    While we started to see some tentative signs of improvement in user activities late in 2024, we will continue to take a prudent approach in our business planning in 2025. We will remain focused on quality growth and further empower our partners and users through our open platform. With the increasing maturity and efficiency of large language models, we expect to allocate more resources to the application of AI across the credit scenarios in the future. We believe such efforts will enable us to better navigate through the current environment and position us well to capture long-term opportunities through innovative technologies, enhanced products and collaborative models.”

    “We are pleased to report another quarter of solid financial results and close the year on a strong note in a still uncertain macro environment. For 2024, total revenue was RMB17.17 billion and Non-GAAP net income was RMB6.42 billion,” Mr. Alex Xu, Chief Financial Officer, commented. “Meanwhile, we generated a record-breaking RMB9.34 billion cash from operations in 2024. Our strong financial positions not only allow us to consistently execute our strategy and support business initiatives, but also enable us to further enhance returns to our shareholders by actively executing 2025 share repurchase plan and significantly raising semi-annual dividends.”

    Mr. Yan Zheng, Chief Risk Officer, added, “Despite facing macro uncertainties, we significantly reduced our overall portfolio risks through 2024 by decisively tightening risk standards early in the year. Overall risk performance reached the best level for the year in the fourth quarter. Among key leading indicators, Day-1 delinquency rate*10 was 4.8% in the fourth quarter, and 30-day collection rate*11 was 88.1%. We feel comfortable with current risk levels and expect to see relatively stable risk performance in the coming quarters as we seek growth opportunities in a changing environment in 2025.”

    10 “Day-1 delinquency rate” is defined as (i) the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that was due for repayment as of such specified date.
    11 “30-day collection rate” is defined as (i) the amount of principal that was repaid in one month among the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that became overdue as of such specified date.

    Fourth Quarter 2024 Financial Results

    Total net revenue was RMB4,482.3 million (US$614.1 million), compared to RMB4,495.5 million in the same period of 2023, and RMB4,370.2 million in the prior quarter.

    Net revenue from Credit Driven Services was RMB2,889.5 million (US$395.9 million), compared to RMB3,248.3 million in the same period of 2023, and RMB2,901.0 million in the prior quarter.

    Loan facilitation and servicing fees-capital heavy were RMB363.0 million (US$49.7 million), compared to RMB481.2 million in the same period of 2023 and RMB258.7 million in the prior quarter. The year-over-year and sequential changes were primarily due to the changes in capital-heavy loan facilitation volume.

    Financing income*12 was RMB1,667.3 million (US$228.4 million), compared to RMB1,485.4 million in the same period of 2023 and RMB1,744.1 million in the prior quarter. The year-over-year increase was primarily due to the growth in average outstanding balance of the on-balance-sheet loans.

    Revenue from releasing of guarantee liabilities was RMB761.8 million (US$104.4 million), compared to RMB1,211.8 million in the same period of 2023, and RMB794.6 million in the prior quarter. The year-over-year decrease was mainly due to the decrease in average outstanding balance of off-balance-sheet capital-heavy loans during the period.

    Other services fees were RMB97.4 million (US$13.3 million), compared to RMB69.8 million in the same period of 2023, and RMB103.7 million in the prior quarter. The year-over-year increase reflected the increase in late payment fees under the credit driven services due to improvement in collection rates of late paid loans.

    Net revenue from Platform Services was RMB1,592.8 million (US$218.2 million), compared to RMB1,247.2 million in the same period of 2023 and RMB1,469.1 million in the prior quarter.

    Loan facilitation and servicing fees-capital light were RMB515.1 million (US$70.6 million), compared to RMB697.0 million in the same period of 2023 and RMB574.6 million in the prior quarter. The year-over-year and sequential decreases were primarily due to the decreases in capital-light loan facilitation volume.

    Referral services fees were RMB907.2 million (US$124.3 million), compared to RMB446.5 million in the same period of 2023 and RMB763.1 million in the prior quarter. The year-over-year and sequential increases were mainly due to the increases in loan facilitation volume through ICE.

    Other services fees were RMB170.5 million (US$23.4 million), compared to RMB103.8 million in the same period of 2023 and RMB131.4 million in the prior quarter.

    Total operating costs and expenses were RMB2,591.9 million (US$355.1 million), compared to RMB3,215.9 million in the same period of 2023 and RMB2,081.0 million in the prior quarter.

    Facilitation, origination and servicing expenses were RMB734.7 million (US$100.6 million), compared to RMB731.8 million in the same period of 2023 and RMB707.9 million in the prior quarter.

    Funding costs were RMB126.8 million (US$17.4 million), compared to RMB161.0 million in the same period of 2023 and RMB146.8 million in the prior quarter. The year-over-year decrease was mainly due to the lower average costs of ABS and trusts. The sequential decrease was mainly due to the decline in funding from ABS and trusts and lower average costs.

    Sales and marketing expenses were RMB523.9 million (US$71.8 million), compared to RMB551.6 million in the same period of 2023 and RMB419.9 million in the prior quarter. The year-over-year decrease was primarily due to improved efficiency in acquiring new customers. The sequential increase was primarily due to a more proactive customer acquisition effort and seasonal factors.

    General and administrative expenses were RMB156.1 million (US$21.4 million), compared to RMB108.0 million in the same period of 2023 and RMB92.0 million in the prior quarter.

    Provision for loans receivable was RMB598.4 million (US$82.0 million), compared to RMB639.9 million in the same period of 2023 and RMB477.5 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile and changes in loan origination volume of on-balance-sheet loans.

    Provision for financial assets receivable was RMB63.3 million (US$8.7 million), compared to RMB148.2 million in the same period of 2023 and RMB64.4 million in the prior quarter. The year-over-year decrease was mainly due to the decline in capital-heavy loan facilitation volume and reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile. The sequential decrease was mainly due to reversal of prior quarters’ provision in the quarter, offsetting by the increase in capital-heavy loan facilitation volume.

    Provision for accounts receivable and contract assets was RMB77.5 million (US$10.6 million), compared to RMB91.1 million in the same period of 2023 and RMB108.8 million in the prior quarter. The year-over-year and sequential decreases reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

    Provision for contingent liability was RMB311.4 million (US$42.7 million), compared to RMB784.3 million in the same period of 2023 and RMB63.6 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile as well as the changes in capital-heavy loan facilitation volume.

    Income from operations was RMB1,890.3 million (US$259.0 million), compared to RMB1,279.6 million in the same period of 2023 and RMB2,289.2 million in the prior quarter.

    Non-GAAP income from operations was RMB1,950.0 million (US$267.2 million), compared to RMB1,322.1 million in the same period of 2023 and RMB2,315.5 million in the prior quarter.

    Operating margin was 42.2%. Non-GAAP operating margin was 43.5%.

    Income before income tax expense was RMB1,932.7 million (US$264.8 million), compared to RMB1,330.9 million in the same period of 2023 and RMB2,356.9 million in the prior quarter.

    Income taxes expense was RMB20.0 million (US$2.7 million), compared to RMB 223.2 million in the same period of 2023 and RMB558.1 million in the prior quarter. The year-over-year and sequential changes were mainly due the writeback of withholding taxes related to the Company’s dividend and share repurchase plans, as the Company became eligible to a lower tax rate in the fourth quarter.

    Net income was RMB1,912.7 million (US$262.0 million), compared to RMB1,107.7 million in the same period of 2023 and RMB1,798.8 million in the prior quarter.

    Non-GAAP net income was RMB1,972.4 million (US$270.2 million), compared to RMB1,150.3 million in the same period of 2023 and RMB1,825.1 million in the prior quarter.

    Net income margin was 42.7%. Non-GAAP net income margin was 44.0%.

    Net income attributed to the Company was RMB1,916.6 million (US$262.6 million), compared to RMB1,111.7 million in the same period of 2023 and RMB1,802.9 million in the prior quarter.

    Non-GAAP net income attributed to the Company was RMB1,976.4 million (US$270.8 million), compared to RMB1,154.3 million in the same period of 2023 and RMB1,829.2 million in the prior quarter.

    Net income per fully diluted ADS was RMB13.24 (US$1.82).

    Non-GAAP net income per fully diluted ADS was RMB13.66 (US$1.87).

    Weighted average basic ADS used in calculating GAAP net income per ADS was 142.94 million.

    Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 144.71 million.

    12 “Financing income” is generated from loans facilitated through the Company’s platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers.

    Full Year 2024 Financial Results

    Total net revenue was RMB17,165.7 million (US$2,351.7 million), compared to RMB16,290.0 million in 2023.

    Net revenue from Credit Driven Services was RMB11,719.0 million (US$1,605.5 million), compared to RMB11,738.6 million in 2023.

    Loan facilitation and servicing fees-capital heavy were RMB1,016.5 million (US$139.3 million), compared to RMB1,667.1 million in 2023. The year-over-year decrease was primarily due to a decline in capital-heavy loan facilitation volume.

    Financing income was RMB6,636.5 million (US$909.2 million), compared to RMB5,109.9 million in 2023. The year-over-year increase was primarily due to the growth in average outstanding balance of on-balance-sheet loans.

    Revenue from releasing of guarantee liabilities was RMB3,695.0 million (US$506.2 million), compared to RMB4,745.9 million in 2023. The year-over-year decrease was mainly due to decrease in average outstanding balance of off-balance-sheet capital-heavy loans during the period.

    Other services fees were RMB371.0 million (US$50.8 million), compared to RMB215.6 million in 2023. The year-over-year increase was mainly due to an increase in late payment fees in connection with improvement in collection rate of late paid loans under the credit driven services.

    Net revenue from Platform Services was RMB5,446.6 million (US$746.2 million), compared to RMB4,551.5 million in 2023.

    Loan facilitation and servicing fees-capital light were RMB2,116.8 million (US$290.0 million), compared to RMB3,214.0 million in 2023. The year-over-year decrease was primarily due to a decline in loan facilitation volume under the capital-light model.

    Referral services fees were RMB2,842.6 million (US$389.4 million), compared to RMB950.0 million in 2023. The year-over-year increase was primarily due to an increase in the loan facilitation volume through ICE.

    Other services fees were RMB487.2 million (US$66.7 million), compared to RMB387.5 million in 2023.

    Total operating costs and expenses were RMB9,637.1 million (US$1,320.3 million), compared to RMB11,433.1 million in 2023.

    Facilitation, origination and servicing expenses were RMB2,900.7 million (US$397.4 million), compared to RMB2,659.9 million in 2023. The year-over-year increase was primarily due to higher collection fees.

    Funding costs were RMB590.9 million (US$81.0 million), compared to RMB645.4 million in 2023. The year-over-year decrease was mainly due to the lower average cost of ABS and trusts, partially offset by the growth in funding from ABS and trusts.

    Sales and marketing expenses were RMB1,725.9 million (US$236.4 million), compared to RMB1,939.9 million in 2023. The year-over-year decrease was mainly due to our prudent customer acquisition approach and lower unit customer acquisition cost.

    General and administrative expenses were RMB449.5 million (US$61.6 million), compared to RMB421.1 million in 2023.

    Provision for loans receivable was RMB2,773.3 million (US$379.9 million), compared to RMB2,151.0 million in 2023. The year-over-year increase was mainly due to the growth in loan origination volume of on-balance-sheet loans.

    Provision for financial assets receivable was RMB296.9 million (US$40.7 million), compared to RMB386.1 million in 2023. The year-over-year decrease was mainly due to a decline in capital-heavy loan facilitation volume.

    Provision for accounts receivable and contract assets was RMB421.5 million (US$57.7 million), compared to RMB175.8 million in 2023. The year-over-year increase reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

    Provision for contingent liability was RMB478.4 million (US$65.5 million), compared to RMB3,053.8 million in 2023. The year-over-year decrease was mainly due to a decline in capital-heavy loan facilitation volume and the reversal of prior provision as loans facilitated in previous period performed better than expected.

    Income from operations was RMB7,528.6 million (US$1,031.4 million), compared to RMB4,857.0 million in 2023.

    Non-GAAP income from operations was RMB7,696.2 million (US$1,054.4 million), compared to RMB5,042.6 million in 2023.

    Operating margin was 43.9%. Non-GAAP operating margin was 44.8%.

    Income before income tax expense was RMB7,892.4 million (US$1,081.3 million), compared to RMB5,277.5 million in 2023.

    Income taxes expense was RMB1,644.3 million (US$225.3 million). Effective tax rate was 20.4%, compared to 18.5% in 2023. The increase in effective tax rate was mainly due to withholding taxes related to the Company’s dividend and share repurchase plan.

    Net income attributed to the Company was RMB6,264.3 million (US$858.2 million), compared to RMB4,285.3 million in 2023.

    Non-GAAP net income attributed to the Company was RMB6,431.9 million (US$881.2 million), compared to RMB4,470.9 million in 2023.

    Net income margin was 36.4%. Non-GAAP net income margin was 37.4%.

    Net income per fully diluted ADS was RMB41.28 (US$5.66).

    Non-GAAP net income per fully diluted ADS was RMB42.39 (US$5.81).

    Weighted average basic ADS used in calculating GAAP net income per ADS was 149.01 million.

    Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 151.72 million.

    30 Day+ Delinquency Rate by Vintage and 180 Day+ Delinquency Rate by Vintage

    The following charts and tables display the historical cumulative 30 day+ delinquency rates by loan facilitation and origination vintage and 180 day+ delinquency rates by loan facilitation and origination vintage for all loans facilitated and originated through the Company’s platform. Loans under “ICE” and total technology solutions are not included in the 30 day+ charts and the 180 day+ charts:

    http://ml.globenewswire.com/Resource/Download/2a5d124f-5f90-4a71-a264-908b101a7e87

    http://ml.globenewswire.com/Resource/Download/95f56823-ce1f-4ade-baf5-cdc0bcf8526c

    Semi-Annual Dividend for the Second Half of 2024

    The board of directors of the Company (the “Board”) has approved a dividend of US$0.35 per Class A ordinary share, or US$0.70 per ADS for the second half of 2024 to holders of record of Class A ordinary shares and ADSs as of the close of business on April 23, 2025 Hong Kong Time and New York Time, respectively, in accordance with the Company’s dividend policy. For holder of Class A ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong no later than 4:30 p.m. on April 23, 2025 (Hong Kong Time). The payment date is expected to be on May 28, 2025 for holders of Class A ordinary shares and around June 2, 2025 for holders of ADSs.

    Update on Share Repurchase

    On March 12, 2024, the Board approved a share repurchase plan (the “2024 Share Repurchase Plan”) whereby the Company is authorized to repurchase its ADSs or Class A ordinary shares with an aggregate value of up to US$350 million during the 12-month period from April 1, 2024.

    In the fourth quarter, the Company had in aggregate purchased approximately 3.1 million ADSs in the open market for a total amount of approximately US$107 million (inclusive of commissions) at an average price of US$34.5 per ADS. As of December 30, 2024, the Company had utilized substantially all of the total authorized value for the 2024 Share Repurchase Plan.

    On November 19, 2024, the Board approved a new share repurchase plan (the “2025 Share Repurchase Plan”) whereby the Company is authorized to repurchase up to US$450 million worth of its ADSs or Class A ordinary shares over the next 12 months starting from January 1, 2025.

    As of March 14, 2025, the Company had in aggregate purchased approximately 2.2 million ADSs in the open market for a total amount of approximately US$86 million (inclusive of commissions) at an average price of US$39.7 per ADS pursuant to the 2025 Share Repurchase Plan.

    Business Outlook

    As macro-economic uncertainties persist, the Company intends to maintain a prudent approach in its business planning for 2025. Management will continue to focus on enhancing efficiency of the Company’s operations. As such, for the first quarter of 2025, the Company expects to generate a net income between RMB1.75 billion and RMB1.85 billion and a non-GAAP net income*13 between RMB1.80 billion and RMB1.90 billion, representing a year-on-year growth between 49% and 58%. This outlook reflects the Company’s current and preliminary views, which is subject to material changes.

    13 Non-GAAP net income represents net income excluding share-based compensation expenses.

    Conference Call Preregistration

    Qifu Technology’s management team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Monday, March 17, 2025 (7:30 PM Beijing Time on the same day).

    All participants wishing to join the conference call must pre-register online using the link provided below.

    Registration Link: https://s1.c-conf.com/diamondpass/10045854-hg6t5r.html

    Upon registration, each participant will receive details for the conference call, including dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

    Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company’s website at https://ir.qifu.tech.

    About Qifu Technology

    Qifu Technology is a leading AI-empowered Credit-Tech platform in China. By leveraging its sophisticated machine learning models and data analytics capabilities, the Company provides a comprehensive suite of technology services to assist financial institutions and consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The Company is dedicated to making credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions.

    For more information, please visit: https://ir.qifu.tech.

    Use of Non-GAAP Financial Measures Statement

    To supplement our financial results presented in accordance with U.S. GAAP, we use Non-GAAP financial measure, which is adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our Non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the Non-GAAP financial measures.

    We use Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS in evaluating our operating results and for financial and operational decision-making purposes. Non-GAAP income from operation represents income from operation excluding share-based compensation expenses. Non-GAAP operating margin is equal to Non-GAAP income from operation divided by total net revenue. Non-GAAP net income represents net income excluding share-based compensation expenses. Non-GAAP net income margin is equal to Non-GAAP net income divided by total net revenue. Non-GAAP net income attributed to the Company represents net income attributed to the Company excluding share-based compensation expenses. Non-GAAP net income per fully diluted ADS represents net income excluding share-based compensation expenses per fully diluted ADS. Such adjustments have no impact on income tax. We believe that Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in results based on U.S. GAAP. We believe that Non-GAAP income from operation and Non-GAAP net income provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Our Non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of Non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.

    Exchange Rate Information

    This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 7.2993 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2024.

    Safe Harbor Statement

    Any forward-looking statements contained in this announcement are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. Qifu Technology may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including the Company’s business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company’s growth strategies, the Company’s cooperation with 360 Group, changes in laws, rules and regulatory environments, the recognition of the Company’s brand, market acceptance of the Company’s products and services, trends and developments in the credit-tech industry, governmental policies relating to the credit-tech industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in Qifu Technology’s filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Qifu Technology does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    For more information, please contact:

    Qifu Technology
    E-mail: ir@360shuke.com

    Unaudited Condensed Consolidated Balance Sheets
    (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)
    except for number of shares and per share data, or otherwise noted)
           
      December 31, December 31, December 31,
      2023 2024 2024
      RMB RMB USD
    ASSETS      
    Current assets:      
    Cash and cash equivalents 4,177,890 4,452,416 609,978
    Restricted cash 3,381,107 2,353,384 322,412
    Short term investments 15,000 3,394,073 464,987
    Security deposit prepaid to third-party guarantee companies 207,071 162,617 22,278
    Funds receivable from third party payment service providers 1,603,419 462,112 63,309
    Accounts receivable and contract assets, net 2,909,245 2,214,530 303,389
    Financial assets receivable, net 2,522,543 1,553,912 212,885
    Amounts due from related parties 45,346 8,510 1,166
    Loans receivable, net 24,604,487 26,714,428 3,659,862
    Prepaid expenses and other assets 329,920 1,464,586 200,647
    Total current assets 39,796,028 42,780,568 5,860,913
    Non-current assets:      
    Accounts receivable and contract assets, net-noncurrent 146,995 27,132 3,717
    Financial assets receivable, net-noncurrent 596,330 170,779 23,397
    Amounts due from related parties 4,240 51 7
    Loans receivable, net-noncurrent 2,898,005 2,537,749 347,670
    Property and equipment, net 231,221 362,774 49,700
    Land use rights,net 977,461 956,738 131,073
    Intangible assets 13,443 11,818 1,619
    Goodwill 41,210 42,414 5,811
    Deferred tax assets 1,067,738 1,206,325 165,266
    Other non-current assets 45,901 36,270 4,969
    Total non-current assets 6,022,544 5,352,050 733,229
    TOTAL ASSETS 45,818,572 48,132,618 6,594,142
           
    LIABILITIES AND EQUITY      
    Current liabilities:      
    Payable to investors of the consolidated trusts-current 8,942,291 8,188,454 1,121,814
    Accrued expenses and other current liabilities 2,016,039 2,492,921 341,529
    Amounts due to related parties 80,376 67,495 9,247
    Short term loans 798,586 1,369,939 187,681
    Guarantee liabilities-stand ready 3,949,601 2,383,202 326,497
    Guarantee liabilities-contingent 3,207,264 1,820,350 249,387
    Income tax payable 742,210 1,040,687 142,574
    Other tax payable 163,252 109,161 14,955
    Total current liabilities 19,899,619 17,472,209 2,393,684
    Non-current liabilities:      
    Deferred tax liabilities 224,823 439,435 60,202
    Payable to investors of the consolidated trusts-noncurrent 3,581,800 5,719,600 783,582
    Other long-term liabilities 102,473 255,155 34,956
    Total non-current liabilities 3,909,096 6,414,190 878,740
    TOTAL LIABILITIES 23,808,715 23,886,399 3,272,424
    TOTAL QIFU TECHNOLOGY INC EQUITY 21,937,483 24,190,043 3,314,022
    Noncontrolling interests 72,374 56,176 7,696
    TOTAL EQUITY 22,009,857 24,246,219 3,321,718
    TOTAL LIABILITIES AND EQUITY 45,818,572 48,132,618 6,594,142
           
    Unaudited Condensed Consolidated Statements of Operations
    (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)
    except for number of shares and per share data, or otherwise noted)
                   
      Three months ended December 31,   Year ended December 31,
      2023 2024 2024   2023 2024 2024
      RMB RMB USD   RMB RMB USD
    Credit driven services 3,248,263   2,889,500   395,860     11,738,560   11,719,027   1,605,500  
    Loan facilitation and servicing fees-capital heavy 481,195   362,958   49,725     1,667,119   1,016,514   139,262  
    Financing income 1,485,446   1,667,340   228,425     5,109,921   6,636,511   909,198  
    Revenue from releasing of guarantee liabilities 1,211,787   761,827   104,370     4,745,898   3,695,017   506,215  
    Other services fees 69,835   97,375   13,340     215,622   370,985   50,825  
    Platform services 1,247,240   1,592,752   218,206     4,551,467   5,446,629   746,185  
    Loan facilitation and servicing fees-capital light 696,985   515,062   70,563     3,213,955   2,116,797   290,000  
    Referral services fees 446,486   907,207   124,287     950,016   2,842,637   389,440  
    Other services fees 103,769   170,483   23,356     387,496   487,195   66,745  
    Total net revenue 4,495,503   4,482,252   614,066     16,290,027   17,165,656   2,351,685  
    Facilitation, origination and servicing 731,787   734,659   100,648     2,659,912   2,900,704   397,395  
    Funding costs 161,016   126,841   17,377     645,445   590,935   80,958  
    Sales and marketing 551,590   523,936   71,779     1,939,885   1,725,877   236,444  
    General and administrative 108,037   156,061   21,380     421,076   449,505   61,582  
    Provision for loans receivable 639,886   598,353   81,974     2,151,046   2,773,323   379,944  
    Provision for financial assets receivable 148,198   63,251   8,665     386,090   296,857   40,669  
    Provision for accounts receivable and contract assets 91,105   77,450   10,611     175,799   421,481   57,743  
    Provision for contingent liabilities 784,323   311,372   42,658     3,053,810   478,404   65,541  
    Total operating costs and expenses 3,215,942   2,591,923   355,092     11,433,063   9,637,086   1,320,276  
    Income from operations 1,279,561   1,890,329   258,974     4,856,964   7,528,570   1,031,409  
    Interest income, net 46,970   74,951   10,268     217,307   237,015   32,471  
    Foreign exchange (loss) gain (815 ) 2,680   367     2,356   1,512   207  
    Other income, net 5,209   (35,251 ) (4,829 )   230,936   125,325   17,169  
    Investment loss –   –   –     (30,112 ) –   –  
    Income before income tax expense 1,330,925   1,932,709   264,780     5,277,451   7,892,422   1,081,256  
    Income taxes expense (223,237 ) (20,042 ) (2,746 )   (1,008,874 ) (1,644,306 ) (225,269 )
    Net income 1,107,688   1,912,667   262,034     4,268,577   6,248,116   855,987  
    Net loss attributable to noncontrolling interests 4,052   3,970   544     16,759   16,198   2,219  
    Net income attributable to ordinary shareholders of the Company 1,111,740   1,916,637   262,578     4,285,336   6,264,314   858,206  
    Net income per ordinary share attributable to ordinary shareholders of Qifu Technology, Inc.
    Basic 3.51   6.70   0.92     13.36   21.02   2.88  
    Diluted 3.44   6.62   0.91     13.04   20.64   2.83  
                   
    Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc.
    Basic 7.02   13.40   1.84     26.72   42.04   5.76  
    Diluted 6.88   13.24   1.82     26.08   41.28   5.66  
                   
    Weighted average shares used in calculating net income per ordinary share
    Basic 316,325,750   285,872,913   285,872,913     320,749,805   298,012,150   298,012,150  
    Diluted 323,305,948   289,427,077   289,427,077     328,508,945   303,449,864   303,449,864  
                   
    Unaudited Condensed Consolidated Statements of Cash Flows
    (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)
    except for number of shares and per share data, or otherwise noted)
                   
      Three months ended December 31,   Year ended December 31,
      2023 2024 2024   2023 2024 2024
      RMB RMB USD   RMB RMB USD
    Net cash provided by operating activities 2,351,791   3,051,606   418,067     7,118,350   9,343,311   1,280,027  
    Net cash used in investing activities (1,885,694 ) (945,611 ) (129,548 )   (11,147,789 ) (7,994,081 ) (1,095,184 )
    Net cash (used in) provided by financing activities (911,621 ) (1,873,516 ) (256,671 )   1,066,458   (2,114,463 ) (289,680 )
    Effect of foreign exchange rate changes (877 ) 31,464   4,311     9,615   12,036   1,649  
    Net (decrease) increase in cash and cash equivalents (446,401 ) 263,943   36,159     (2,953,366 ) (753,197 ) (103,188 )
    Cash, cash equivalents, and restricted cash, beginning of period 8,005,398   6,541,857   896,231     10,512,363   7,558,997   1,035,578  
    Cash, cash equivalents, and restricted cash, end of period 7,558,997   6,805,800   932,390     7,558,997   6,805,800   932,390  
                   
    Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income
    (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)
    except for number of shares and per share data, or otherwise noted)
           
      Three months ended December 31,
      2023 2024 2024
      RMB RMB USD
    Net income 1,107,688   1,912,667 262,034
    Other comprehensive income, net of tax of nil:      
    Foreign currency translation adjustment (3,606 ) 145,610 19,948
    Other comprehensive (loss) income (3,606 ) 145,610 19,948
    Total comprehensive income 1,104,082   2,058,277 281,982
    Comprehensive loss attributable to noncontrolling interests 4,052   3,970 544
    Comprehensive income attributable to ordinary shareholders 1,108,134   2,062,247 282,526
           
           
      Year ended December 31,
      2023 2024 2024
      RMB RMB USD
    Net income 4,268,577   6,248,116 855,987
    Other comprehensive income, net of tax of nil:      
    Foreign currency translation adjustment 17,118   46,534 6,375
    Other comprehensive income 17,118   46,534 6,375
    Total comprehensive income 4,285,695   6,294,650 862,362
    Comprehensive loss attributable to noncontrolling interests 16,759   16,198 2,219
    Comprehensive income attributable to ordinary shareholders 4,302,454   6,310,848 864,581
    Unaudited Reconciliations of GAAP and Non-GAAP Results
    (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)
    except for number of shares and per share data, or otherwise noted)
           
      Three months ended December 31,
      2023 2024 2024
      RMB RMB USD
    Reconciliation of Non-GAAP Net Income to Net Income      
    Net income 1,107,688   1,912,667   262,034
    Add: Share-based compensation expenses 42,572   59,720   8,182
    Non-GAAP net income 1,150,260   1,972,387   270,216
    GAAP net income margin 24.6 % 42.7 %  
    Non-GAAP net income margin 25.6 % 44.0 %  
           
    Net income attributable to shareholders of Qifu Technology, Inc. 1,111,740   1,916,637   262,578
    Add: Share-based compensation expenses 42,572   59,720   8,182
    Non-GAAP net income attributable to shareholders of Qifu Technology, Inc. 1,154,312   1,976,357   270,760
    Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted 161,652,974   144,713,538   144,713,538
    Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted 6.88   13.24   1.82
    Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted 7.14   13.66   1.87
           
    Reconciliation of Non-GAAP Income from operations to Income from operations      
    Income from operations 1,279,561   1,890,329   258,974
    Add: Share-based compensation expenses 42,572   59,720   8,182
    Non-GAAP Income from operations 1,322,133   1,950,049   267,156
    GAAP operating margin 28.5 % 42.2 %  
    Non-GAAP operating margin 29.4 % 43.5 %  
           
           
      Year ended December 31,
      2023 2024 2024
      RMB RMB USD
    Reconciliation of Non-GAAP Net Income to Net Income      
    Net income 4,268,577   6,248,116   855,987
    Add: Share-based compensation expenses 185,604   167,613   22,963
    Non-GAAP net income 4,454,181   6,415,729   878,950
    GAAP net income margin 26.2 % 36.4 %  
    Non-GAAP net income margin 27.3 % 37.4 %  
           
    Net income attributable to shareholders of Qifu Technology, Inc. 4,285,336   6,264,314   858,206
    Add: Share-based compensation expenses 185,604   167,613   22,963
    Non-GAAP net income attributable to shareholders of Qifu Technology, Inc. 4,470,940   6,431,927   881,169
    Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted 164,254,473   151,724,932   151,724,932
    Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted 26.08   41.28   5.66
    Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted 27.22   42.39   5.81
           
    Reconciliation of Non-GAAP Income from operations to Income from operations      
    Income from operations 4,856,964   7,528,570   1,031,409
    Add: Share-based compensation expenses 185,604   167,613   22,963
    Non-GAAP Income from operations 5,042,568   7,696,183   1,054,372
    GAAP operating margin 29.8 % 43.9 %  
    Non-GAAP operating margin 31.0 % 44.8 %  
           

    The MIL Network –

  • MIL-OSI USA: Office of the Governor — News Release — Gov. Green Announces First One ‘Ohana Fund Disbursement

    Source: US State of Hawaii

    Office of the Governor — News Release — Gov. Green Announces First One ‘Ohana Fund Disbursement

    Posted on Mar 14, 2025 in Latest Department News, Newsroom, Office of the Governor Press Releases

    STATE OF HAWAIʻI 
    KA MOKU ʻĀINA O HAWAIʻI 
     
    JOSH GREEN, M.D. 
    GOVERNOR
    KE KIAʻĀINA 
     

    GOVERNOR GREEN ANNOUNCES FIRST ONE ‘OHANA FUND DISBURSEMENT TO SURVIVORS

    FOR IMMEDIATE RELEASE
    March 14, 2025

    HONOLULU — Governor Josh Green, M.D., today announced the initial disbursements from the $175 million One ‘Ohana Fund, a key initiative of the Maui Wildfires Compensation Program (MWCP). This fund was created to provide direct financial relief to the families of those who lost loved ones and to individuals who suffered serious physical injuries in the August 8, 2023, Maui wildfires.

    “While no amount of money can replace the lives lost or the suffering endured, we remain steadfast in our commitment to providing timely and fair compensation,” said Governor Green. “Today marks a significant step forward in the long journey of recovery for the people of Maui.”

    Initial Disbursements and Program Progress:
    • The first $1.5 million payment has been issued to the estate of a wildfire victim.
    • A total of 26 wrongful death claims have been qualified:
    • One claim has been paid.
    • 22 additional payments will be made upon approval of good-faith settlement petitions.
    • Two claimants withdrew, and one claim was voided under program protocols.
    • Nine serious physical injury claims are in the final review process.
    • Phase One of the MWCP is expected to be fully completed by June 30, 2025.

    Larger Global Settlement and Future Payments:
    • The One ‘Ohana Fund will provide 23 wrongful death payments and nine injury case payments.
    • Families receiving disbursements may seek additional compensation from the $4 billion global settlement fund.
    • After these disbursements, the One ‘Ohana Fund will begin accepting up to 79 additional wrongful death claims, each receiving $1.5 million, with the ability to pursue further compensation.

    Ensuring Fairness and Transparency:
    • The state of Hawaiʻi has pledged $800 million to the global settlement, pending legislative approval.
    • A new oversight entity will be established to ensure efficient and equitable distribution of funds.
    • Maui Circuit Court Judge Peter Cahill will oversee the resolution of claims from subrogation insurers.

    “This process was designed to be accessible and fair,” Governor Green emphasized. “Nearly 65% of wrongful death claimants have represented themselves—an encouraging sign that our approach is working as intended.”

    The state remains committed to:
    • Ensuring that all displaced residents—regardless of ethnicity or citizenship—receive assistance.
    • Engaging the community in long-term planning for transitional and permanent housing.
    • Returning historically recognized lands to the Lahaina community.
    • Securing $500 million for Infrastructure Master Planning to support long-term rebuilding efforts.

    “I want to extend my deepest gratitude to Judge Ronald Ibarra (Ret.), our legal teams, pro bono attorneys, financial partners and community organizations for making today possible,” said Governor Green. “We will continue to stand with our families, our community and all those who need support. Together, we will rebuild Lahaina stronger.”

    To view the livestream, double-click here. 
    Photos from today’s news conference can be found here.
    Slides from today’s news conference can be found here.

    # # #

    Media Contacts:   
    Erika Engle
    Press Secretary
    Office of the Governor, State of Hawai‘i
    Office: 808-586-0120
    Email: [email protected] 

    Makana McClellan
    Director of Communications
    Office of the Governor, State of Hawaiʻi
    Cell: 808-265-0083
    Email: [email protected]

    MIL OSI USA News –

  • MIL-OSI Economics: “Another Win this Week for Common Sense” – President Trump Signs CRA Resolution Nullifying Methane Tax Regulations on Energy Producers

    Source: Independent Petroleum Association of America

    Headline: “Another Win this Week for Common Sense” – President Trump Signs CRA Resolution Nullifying Methane Tax Regulations on Energy Producers

    Mar 15, 2025 “Another Win this Week for Common Sense” – President Trump Signs CRA Resolution Nullifying Methane Tax Regulations on Energy Producers

    IPAA Appreciates Quick Action by President on Hoeven and Pfluger Legislation 

    WASHINGTON – Independent Petroleum Association of America (IPAA) President & CEO Jeff Eshelman issued the following statement today on President Donald Trump signing H.J.Res.35 which through the Congressional Review Act process disapproves of the Biden Environmental Protection Agency’s (EPA) methane tax regulations:

    “In another win this week for common sense, President Trump and his Administration have taken action to nullify the regulations the Biden Administration established to implement the misguided methane tax on oil and natural gas producers. On Wednesday, EPA announced that the agency is reconsidering its Subpart OOOOb and Subpart OOOOc regulations and its Subpart W greenhouse gas reporting program rules – reconsideration provides a pathway for making these regulations more cost-effective and well-structured. IPAA appreciates President Trump moving quickly to sign this Congressional Review Act resolution and the initiative of Senator John Hoeven (R-ND) and Congressman August Pfluger (R-TX) in guiding the resolution through Congress.

    “IPAA and our members remain committed to working with the EPA to find a regulatory pathway designed for the sources it regulates, while encouraging continued progress toward reducing emissions. Big new oil and natural gas wells and low producing older wells have differing emissions profiles. Our members are making constant improvements to the technology being used to reduce, measure and report on emissions.”

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    MIL OSI Economics –

  • MIL-OSI USA: Crapo Statement at Executive Session to Consider Deputy Treasury Secretary Nominee

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) delivered the following remarks at an executive session to consider the nomination of Michael Faulkender to be Deputy Treasury Secretary.

    As prepared for delivery:

    “We meet today to vote on the nomination of Michael Faulkender to be Deputy Secretary of the Treasury.

    “Mr. Faulkender has years of public and private sector experience, in addition to strong academic credentials.  His background makes him the quintessential pick to serve as Deputy Treasury Secretary.

    “As I said in my opening statement at Mr. Faulkender’s hearing, the Finance Committee has an arduous nomination process and once the nominee completes all the steps, he or she deserves a public hearing, followed by a vote. 

    “Mr. Faulkender sat for hours of questions from Members and staff of this Committee and provided thoughtful answers.  He also responded judiciously to further questions in writing. 

    “My colleagues received responses to their inquiries on Department of Government Efficiency-related work at Treasury and the IRS, and, if confirmed, Mr. Faulkender pledges to provide a briefing on the Treasury payments system.

    “I thank Mr. Faulkender for this commitment, and for his time working through this rigorous process.

    “Qualified nominees for this position in prior congresses garnered bipartisan support.  I encourage my colleagues on both sides of the aisle to join me today to vote in favor of Mr. Faulkender’s nomination.”

    MIL OSI USA News –

  • MIL-OSI USA: Dr. Oz Agrees with Sen. Warren: Cracking Down on Private Health Insurers in Medicare Advantage Will “Improve the Health Care of the American People”

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren

    March 14, 2025

    Dr. Oz: “My goal is to improve the health care of the American people…[cutting Medicare Advantage fraud] sounds like a more rational way to do that [than cutting funding for Medicaid].” 

    The Medicare Payment Advisory Committee projects that CMS overpaid private insurers in MA by $83 billion in 2024 alone.

    Video of Exchange (YouTube)

    Washington, D.C. – At a hearing of the Senate Finance Committee, U.S. Senator Elizabeth Warren (D-Mass.) pressed Dr. Mehmet Oz, President Trump’s nominee for Administrator of the Centers for Medicare & Medicaid Services (CMS), on taxpayer fraud committed by private, for-profit insurers in the Medicare Advantage program. 

    The Medicare Payment Advisory Committee (MedPAC) projects that CMS will overpay private insurers in MA by $83 billion in 2024 alone, largely due to upcoding and favorable selection tactics by the insurers. 

    An investigation led by the Health and Human Services Inspector General (HHS OIG) revealed that private insurers in MA raked in about $4.2 billion in extra CMS payments in 2022 for diagnoses from home visits the companies initiated, even though they led to no treatment. The Wall Street Journal also found that between 2018 and 2021, private insurers in MA raked in $50 billion from CMS for diagnoses that led to no treatment. 

    Dr. Oz previously called the Traditional Medicare program “highly dysfunctional” and argued that private Medicaid Advantage insurers offer cheaper and more accessible coverage. He outlined a “Medicare Advantage for All” plan, which would move all non-Medicaid eligible Americans into MA. During this time, Dr. Oz held over $500,000 in stock with the largest private insurer in Massachusetts, UnitedHealth. 

    When questioned if he would rather cut waste, fraud, and abuse in Medicare Advantage, or cut funding for Medicaid during his confirmation hearing, Dr. Oz agreed that “the former sounds like a more rational way to do that.” Last month, Republicans in the House passed a spending bill with $88 billion in annual cuts to Medicaid. 

    Senator Warren has led strong oversight on Dr. Oz through his confirmation process and, ahead of his confirmation hearing, sent 176 questions demanding answers to his plan to eliminate traditional Medicare, his serious conflicts of interest, his dangerous anti-abortion views, and more.

    Transcript: Hearing to examine the nomination of Mehmet Oz, of Pennsylvania, to be Administrator of the Centers for Medicare and Medicaid Services.
    Senate Finance Committee
    March 14, 2025

    Senator Elizabeth Warren: Thank you, Mr. Chairman. So, Dr. Oz, if confirmed, you would oversee Medicare coverage for more than 66 million Americans. Nearly half have traditional Medicare, where the federal government provides health care coverage directly. The other half are on Medicare Advantage, where the federal government pays a private for-profit insurer to administer the health benefits instead. And surprise, surprise, the privatized Medicare costs a whole lot more. 

    So, let’s talk about the top trick that Medicare Advantage insurers use to gouge taxpayers up coding. I understand Senator Cassidy started on this this morning, and I just want to dig a little deeper in Medicare Advantage. Taxpayers give insurers a set amount per patient. The more diagnoses, or the more codes, the patient has, the higher the payment. Now, in theory, this covers higher costs for sicker patients, but insurance companies get the money for the codes, not actually for the services they do or don’t deliver. 

    Medicare Advantage insurers have figured out that if they can add a bunch of fake diagnoses that they don’t actually have to spend money treating, they can really boost their profits. One example, last year, the Wall Street Journal identified 66,000 Medicare Advantage patients diagnosed with diabetic cataracts who had already gotten cataract surgery. Now that is, as you know, anatomically impossible. 

    So, Dr. Oz, insurers pocketed an extra $178 million in taxpayer money last year thanks to just this one fake diagnosis. Does that sound like Medicare fraud to you?

    Dr. Mehmet Oz: Senator Warren, I appreciate you spending time with me in your office. The answer is yes, anatomically impossible. 

    And I’ll give you one more example, okay, which is sending someone to your home, which you brought up in the office. If you’re going to say it, I won’t say it, but you pointed out something that’s very real, which is if you send someone to, someone to, if an insurance company sends someone to your home, there’s probably a reason for it. And so if they’re doing ultrasounds to look for minor atherosclerotic plaques, which is not really something that needs to be treated and most Americans have, it’s primarily done to upcode you. Which has two problems. One, it’s cheating, because you’re able to charge more for those patients. But then people who truly have limb-threatening peripheral vascular disease, who have that box checked in their care, those companies—insurance companies—don’t get paid more, those doctors don’t get reimbursed more for doing what is ethically correct. So it doesn’t just help the scoundrels who are stealing from the vulnerable, it’s actually hurting the people trying to take care of those vulnerable populations. 

    Senator Warren: In fact, let’s talk about how bad that upcoding is that comes from the home visits. HHS Inspector General found that in 2022 alone, United Health used these home visits to add about $2.3 billion worth of diagnoses, diagnoses that led to absolutely no treatment. 

    And I take it, you think that sounds like fraud, as well?

    Dr. Oz: We are, I think, as an agency aware of this. I haven’t been in there yet, but if confirmed, this will be one of the topics that is relatively enjoyable to go after, because I think we have bipartisan support.

    Senator Warren: I love hearing this. So, upcoding is a scandal, and overall, we know that Medicare Advantage overpayments cost at least $83 billion in a single year. So, $83 billion—remember that number. Last month, Republicans in the House passed a budget framework that sets up $88 billion in annual cuts to health care, Medicaid funding for seniors in nursing homes, and for people with disabilities who have a home health aide, and more. 

    Dr. Oz, I have a simple question: If you had the choice, would you rather cut waste, fraud and abuse by a Fortune 50 health insurance company in Medicare Advantage or cut funding for Medicaid, which covers half of all seniors in nursing homes and one in three of America’s children?

    Dr. Oz: My goal is to improve the health care of the American people, and as you create the argument, the former sounds like a more rational way to do that.

    Senator Warren: I appreciate that. You know, I am happy to work with Republicans to go after waste, fraud and abuse, but let’s cut out waste, fraud and abuse where it actually occurs, like upcoding in Medicare Advantage. Republicans cutting health care for seniors and for babies and for people with disabilities, while the waste and the fraud just roll right along for a multibillion-dollar insurance company is sickening, and I will fight that every step of the way. Thank you, Dr. Oz.

    MIL OSI USA News –

  • MIL-OSI Africa: CLG Workshop at Congo Energy & Investment Forum (CEIF) 2025 to Address Legal and Strategic Solutions in Congo

    Source: Africa Press Organisation – English (2) – Report:

    BRAZZAVILLE, Congo (Republic of the), March 14, 2025/APO Group/ —

    The inaugural Congo Energy & Investment Forum (CEIF), taking place from March 24-26 in Brazzaville, will feature a workshop led by legal firm CLG (formerly Centurion Law Group) that aims to address the unique challenges faced in Congo’s energy investment sector. As part of a strategy to spur energy investment and socioeconomic development, the Republic of Congo has initiated a number of strategies to drive resource monetization, project development and local capacity building.

    As such, the Mastering Business in Congo: Legal Challenges and Strategic Solutions for Success session will take place on 24 March, offering an understanding of the legal structures underpinning corporate law, taxation, immigration, labor law and regulatory compliance. During the session, a panel of legal experts from CLG will delve into all aspects of growing investments in the African energy sector, offering insights into the legal nuances that can directly influence investments decisions. 

    Set to showcase how Congo’s investment landscape can accelerate monetization of the country’s natural resources, CLG’s experience in the African market has the potential to empower businesses with effective management skills and knowledge for participating in Congo’s energy sector. The country is set to release its Gas Master Plan (https://apo-opa.co/3DF5fSI) and new Gas Code (https://apo-opa.co/3Fsijey) at CEIF 2025, with a promise to reducing energy imports in the country and raising electricity access for its population, which currently stands at 50%.

    Meanwhile, Congo is also preparing to launch an international oil and gas licensing round (https://apo-opa.co/4bu0dF8) at CEIF 2025, aiming to attract investment in both marginal and deepwater blocks. This initiative is part of the country’s strategy to increase oil production from the current 274,000 barrels per day (bpd) to 500,000 bpd by 2027. These major developments align with Congo’s broader national goals to mitigate production declines and stimulate further exploration on- and offshore. are expected to usher in a new wave of investment in sub-Saharan Africa’s fourth largest oil producing market.

    The Mastering Business in Congo: Legal Challenges and Strategic Solutions for Success will offer attendees the opportunity to master the complex regulatory landscape and learn how it affects various investment types within the energy sector. During the session, CLG will provide delegates with knowledge to develop actionable strategies to mitigate legal risks and safeguard investments from future potential strategies.

    “At CEIF 2025, we recognize that navigating the complex legal and regulatory landscape is crucial for successful investment in Congo’s growing energy sector. This workshop, led by CLG, is a pivotal opportunity for investors and stakeholders to gain valuable insights into the legal frameworks that underpin the energy market. By addressing key challenges and offering strategic solutions, we aim to empower businesses with the knowledge to unlock the full potential of Congo’s energy resources,” states Daoudou Mohammad, Tax and Legal Director, CLG.

    CLG is a leading provider of specialized legal and tax advisory services, catering to a diverse portfolio of multinational companies operating globally. With a team of experts boasting extensive experience and knowledge across multiple sectors and with offices in Germany, South Africa, Nigeria, Mauritius, Ghana, the Republic of Congo, Cameroon, Equatorial Guinea, Namibia and South Sudan; CLG delivers bespoke solutions tailored to address the unique challenges and complexities faced by clients in various industries.

    CLG’s expertise spans a wide range of industries – including energy, infrastructure, mining, agriculture, and ESG to name a few –  enabling the firm to provide comprehensive guidance and support to clients navigating Africa’s dynamic business landscape. By combining technical excellence with a deep understanding of local markets and regulatory environments, CLG helps clients achieve their business objectives and capitalize on opportunities for growth and expansion.

    Registration (https://apo-opa.co/3FspgMZ) for the workshop is now open.

    The inaugural Congo Energy & Investment Forum, set for March 24-26, in Brazzaville, under the patronage of President Denis Sassou Nguesso and supported by the Ministry of Hydrocarbons and Société Natioanle des Pétroles du Congo, will bring together international investors and local stakeholders to explore national and regional energy and infrastructure opportunities. The event will explore the latest gas-to-power projects and provide updates on ongoing expansions across the country.

    MIL OSI Africa –