American oil and gas firm Kosmos Energy has recorded a net loss of $111 million in the first quarter of 2025.
This is equivalent to $0.23 per diluted share.
Kosmos recorded a net loss of $105 million, or $0.22 per share, after adjusting for one-time items.
The company generated $290 million in revenue for the quarter.
This translates to an average of $65.27 per barrel of oil equivalent (BOE), excluding derivative settlements.
Kosmos Energy operates in Ghana’s Jubilee Field, the Gulf of Mexico, and Equatorial Guinea. It is also a partner in the Greater Tortue Ahmeyim Liquified Natural Gas (LNG) project offshore Mauritania and Senegal.
Kosmos produced 60,500 boepd and sold 49,600 boepd. This resulted in an underlift of 1.2 million boe.
According to a statement issued by Kosmos, planned maintenance in Ghana and the Gulf of Mexico temporarily reduced production, but the company said the shutdowns have been completed.
Kosmos and its partners exported the first LNG cargo from the Greater Tortue Ahmeyim (GTA) project in April, offshore Mauritania and Senegal.
Kosmos expects output to rise in Q2, with management reaffirming its full-year production guidance of 70,000–80,000 boepd.
Kosmos spent $86 million on capital projects in Q1, falling below guidance.
The savings came from lower costs for Ghana’s 4D seismic campaign and delayed drilling at Winterfell-4 in the Gulf of Mexico.
The company aims to cut full-year capex below the original $400 million estimate.
Kosmos also made headway on its $25 million overhead reduction target. The company reported $167 million in production expenses, or $24.99/boe, excluding GTA-related costs.
Negative free cash flow of $91 million reflected scheduled maintenance and delayed liftings. By the end of Q1, Kosmos held $2.85 billion in net debt and $400 million in available liquidity.
Supported by a strong reserve base, the company secured its $1.35 billion reserve-based lending (RBL) facility during the spring redetermination.
Kosmos expanded its oil hedging strategy during the quarter.
The company now hedges about 40% of its remaining 2025 production, with a $65/boe floor and $80/boe ceiling.
Commenting on the Company’s first quarter 2025 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “While the macro backdrop continues to be volatile, Kosmos’ priorities announced with our full year 2024 results in February remain unchanged – the delivery of free cash flow from increasing production and a rigorous focus on costs. We are seeing evidence of this with a significant reduction in year-over-year capital expenditure in the first quarter and production starting to rise in the second quarter after heavy scheduled Q1 maintenance.
“Operationally, the Greater Tortue Ahmeyim (GTA) partnership achieved a major milestone in April, exporting the first cargo from the project, with a second currently loading. Production is ramping up to the contracted sales volume, with potential to push higher towards, or beyond, the nameplate capacity of the floating LNG (FLNG) vessel of 2.7 million tonnes per annum. In Ghana, the partnership completed the 4D seismic survey. This new seismic data, combined with the latest processing techniques, will support the high-grading of the future infill drilling program.
“Financially, the actions taken in 2024 to improve the resilience of the company enable Kosmos to better withstand the current market volatility. We concluded the spring Reserve-Based Lending (RBL) redetermination with a strong reserve base supporting the $1.35 billion facility capacity, with ample liquidity. In addition, we continue to focus on reducing the company’s capital expenditure and overhead costs and are delivering the targeted reductions.
“The long-term outlook for our portfolio of high-quality assets remains positive. A 2P reserves-to-production ratio of over 20 years supports the long-term potential of Kosmos as we focus in the near term on cash generation, cost control, and debt paydown.”
Source:https://energynewsafrica.com
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