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.
Kosmos’ assets offshore Equatorial Guinea; Source: Kosmos Energy
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
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