Kosmos Swings to Loss in Q4
Texan oil and gas producer Kosmos Energy swung to a net loss in the fourth quarter of $35.8mn, versus a $185.6mn net profit in the same period of 2018, it said in a report on February 24.
Revenues increased to $450mn, from $301mn a year before, and the company gained an additional $10.5mn from divestments. But its costs ballooned to $462.5mn from $22.4mn. In 2018 it made a $267.4mn gain from derivatives in the fourth quarter, which it did not replicate last year.
The company, focused mainly off the coast of west Africa where it is developing a major gas resource, sold 60,600 boe/day of oil and gas in the three-month period, up from 48,600 boe/day a year earlier.
Kosmos posted a full-year loss of $55.8mn, compared with a $94mn loss in 2018. Its revenues grew to $1.5bn from $867mn, while its costs also climbed to $1.48bn from $953mn.
On the upside, the producer achieved $250mn in free cash flow in 2019, marking its third year of organic cash generation. It ended the year with $825mn of liquidty and $1.82bn of net debt.
Kosmos said separately that its CFO Thomas Chambers would retire in May after five years in the role. He will be succeeded by his deputy Neal Shah.