Kosmos Energy swings to loss despite higher revenues
U.S.-based Kosmos Energy sank to a loss in the last quarter of 2019 despite a significant increase in revenues compared to the same period of 2018.
According to its report on Monday, Kosmos generated a net loss of $35.8 million in the fourth quarter of 2019 compared to a profit of $185.6 million in the same period of 2018.
When adjusted for certain items that impact the comparability of results, the company generated an adjusted net loss of $37 million for the fourth quarter of 2019.
The company’s total revenues in the period increased to $460 million from $309.5 million in 4Q 2018.
The company’s production expense in 4Q 2019 was $136 million, or $18.12 per boe, compared to $89 million in the corresponding period of 2018.
Kosmos’ fourth quarter results included a mark-to-market loss of $36 million related to the company’s oil derivative contracts. As of the quarter-end and including recently executed hedges, Kosmos has approximately 18.0 million barrels of Brent oil hedged covering 2020 and 2021.
Kosmos exited the fourth quarter of 2019 with approximately $825 million of liquidity, the total debt of $2.05 billion, and $1.82 billion of net debt.
Total net production in the fourth quarter of 2019 averaged approximately 65,200 barrels of oil equivalent per day (boepd).
Kosmos expects to spend approximately $325 to $375 million in 2020, excluding Mauritania and Senegal, with spending focused on maintaining existing production and growth through infrastructure-led exploration.
Also on Monday, Kosmos said its CFO, Thomas P. Chambers, would retire in May 2020. Chambers will be replaced by Neal D. Shah, currently senior vice president and deputy chief financial officer.
Offshore Energy Today Staff
Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.
Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.