Kosmos boosts 3Q profit
Kosmos Energy, an oil & gas exploration and production company, has posted a net income of $60.3 million for the third quarter of 2015, as compared to net income of $19.1 million, in the same quarter last year.
When adjusted for certain items that impact the comparability of results, the company generated adjusted net income of $7.4 million for the third quarter of 2015.
“Kosmos continued to build momentum in the third quarter,” said Andrew G. Inglis, chairman and chief executive officer.
“We have spud our second exploration well in Mauritania, Marsouin-1, to begin the process of unlocking the full potential of the basin. In the quarter, we saw Jubilee oil production approach FPSO capacity and the TEN project is approximately 75 percent complete and remains on schedule to produce first oil in the third quarter of 2016.
The Marsouin-1 well offshore Mauritania was spud by the drillship Atwood Achiever. Kosmos recently extended the drillship’s contract by a year, but with a reduced dayrate.
“We have taken further steps this quarter to protect our balance sheet and liquidity, and remain focused on executing our strategy to create long-term value,” Inglis added.
Kosmos’ third quarter 2015 oil revenues were $96.6 million on sales of 1.9 million barrels versus $137.5 million in the same quarter of 2014 on sales of 1.4 million barrels.
Production expense for the current quarter was $23.2 million, or $12.52 per barrel, versus $15.1 million, or $10.46 per barrel, in the third quarter of 2014. The increase in operating expense is related to higher volumes and non-routine maintenance, including costs associated with gas compressor downtime during a portion of the quarter.
Furthermore, Kosmos’ exploration expenses totaled $18.9 million, compared to $21.3 million in the same period of 2014.
The company said its third quarter results included a mark-to-market gain of $142.1 million related to its oil derivative contracts.
Kosmos’ total capital expenditures in the third quarter were $197.1 million.