9th Nov 2020 10:15
(Alliance News) - Kosmos Energy Ltd on Monday said production took a knock in the third quarter of 2020 after the Gulf of Mexico saw "one of the worst storm seasons on record".
The deepwater exploration and production company focused along the Atlantic margins said its revenue in the third quarter ended September 30 was down 37% to USD224.8 million from USD357.0 million a year prior.
Kosmos posted a pretax loss of USD36.5 million, swinging from a profit of USD39.5 million a year before.
Total net production averaged around 56,700 barrels of oil equivalent per day, down 5.7% from the second quarter's 60,100 barrels. This was mainly due to the elevated storm activity in the Gulf of Mexico, Kosmos said.
Production expense increased to USD15.39 per barrel from USD14.53 per barrel in the second quarter.
Chief Executive Andrew Inglis said: "Kosmos delivered robust operational performance in the third quarter, despite elevated storm activity driving temporary shut-ins in the Gulf of Mexico. Production in Ghana and Equatorial Guinea was in line with expectations, with the reliability improvements seen in the first half of the year continuing into the second half.
"With the impact of Covid-19 and one of the worst storm seasons on record in the Gulf of Mexico, full year production is expected to come in at 61,000 to 62,000 barrels of oil equivalent per day."
This is below the previous guidance set out in the second quarter of between 62,000 and 70,000 barrels of oil equivalent per day.
Kosmos shares were untraded in London on Monday at 82.50 pence. In New York, they were down 1.0% in pre-market activity at USD0.98.
By Greg Roxburgh; [email protected]
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