8th Nov 2021 11:32
(Alliance News) - Kosmos Energy Ltd on Monday increased its production outlook following recent acquisitions made in Ghana, while a fall in expenses led to a narrowed loss in the third quarter.
Kosmos is an oil and gas exploration and production company focused along the Atlantic Margins. It generated a pretax loss of USD28.0 million in the third quarter of the year, narrowed from USD36.5 million last year.
A revenue fall of 11% to USD200.5 million from USD224.8 million was partially mitigated by shrinking expenses, with total costs falling 13% to USD228.5 million from USD261.3 million.
Diluted loss per share narrowed to USD0.07 from USD0.09 last year. In the nine months to end-September, diluted loss per share improved to USD0.43 from USD1.04.
Total net production came in at 49,300 barrels of oil equivalent per day in the third quarter, down 13% from 56,700 barrels a year prior.
Operationally, Kosmos delivered in line with expectations for the quarter, taking account of the impact of Hurricane Ida in the Gulf of Mexico, the firm said.
Chair & Chief Executive Andrew Inglis said: "With the recently executed transactions, Kosmos has significantly enhanced the outlook for the company. The Oxy Ghana transaction accelerates our strategic delivery with increased near-term production and cash flow driving down leverage."
Looking ahead, Kosmos has annual production guidance set between 70,000 and 72,000 boepd. This has been lifted from July's guidance of between 53,000 and 57,000 boepd.
In mid-October, the firm acquired an additional 18% stake in the Jubilee field and an additional 11% interest in the TEN fields in Ghana from US oil firm Occidental Petroleum Corp for USD550 million.
Kosmos expects the fields to deliver cash generation of about USD1 billion of incremental free cash flow by the end of 2026 at USD65 per barrel of oil. Brent oil was priced just below USD84 a barrel on Monday morning.
Kosmos now holds a 42% stake in Jubilee and 28% in TEN.
Kosmos shares were untraded at 266.10 pence each in London on Monday morning.
By Greg Roxburgh; [email protected]
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