2nd Mar 2026 15:44
(Alliance News) - Kosmos Energy Ltd on Monday said it swung to pretax loss in 2025, as lower oil prices led to falling revenue while rising production and exploration costs weighed on the company's full-year numbers ahead of an expected 15% year-on-year production increase.
The company reported revenue for USD1.29 billion in 2025, down 23% from USD1.68 billion a year prior.
It also reported a pretax loss of USD634.6 million, swinging from a profit of USD189.9 million in 2024.
The London-based oil and gas firm also reported higher production costs of USD708.9 million, up 34% from USD530.5 million a year ago despite net volume sold fell to 61,408 barrels of energy per day from 64,226 last year. A USD177.6 million impairment of long-lived assets adds on to the 2025 results.
Kosmos, however, also managed to redeem all of its outstanding unsecured notes maturing this year using a senior secured loan facility, pushing some of its liabilities further into the future. It also repaid USD100 million of borrowings.
In addition, it said net production was up slightly in the fourth quarter, in addition to a 90% ratio of reserves replacement and an expected 15% production boost next year.
The yearly boost is justified by the company as the Jubilee production already went above 70,000 barrels of oil per day, while its liquified natural gas offshore project has already produced an equivalent of 2.9 million tonnes per annum going into 2026.
Chair and Chief Executive Officer Andrew Inglis said: "2025 was a year of laying the foundation for improved operational and financial performance. In the past few months, we are starting to see the results of the team's hard work and expect to deliver more wins in 2026 as we continue to grow production, reduce costs and enhance the resilience of our balance sheet."
He added that the Jubilee drilling campaign is delivering results with the second well coming online and five more still to go, and that capital expenditures below budget demonstrate rigorous control on the allocation of capital.
"In 2026, we intend to keep capex levels low and also drive a material reduction in operating costs of around 20% year-on-year," Inglis added.
The company also added it targets to reduce its debt burden by at least 10% this year.
Kosmos shares were up 7.0% to 177.00 pence on Monday afternoon in London.
By Martin Miraglia, Alliance News reporter
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