Kosmos second quarter revenue drops as oil price weaken

Kosmos Energy Ltd on Monday said revenue tumbled in the second quarter due to lower oil prices.

The Texas-based oil & gas producer focused on Ghana, Guinea and the US Gulf of Mexico reported revenue USD273.3 million in the second quarter of 2022, down 56% from USD620.9 million the year prior. The company noted that it realised USD65.40 per barrel of oil equivalent during the period, lower compared to the first quarter due to a decline in commodity prices. It was 24% lower than USD86.50 a year prior.

The firm said pretax profit was USD53.2 million, down 73% from USD194.2 million a year ago. Kosmos posted basic income per share of USD0.05, down 81% from USD0.26.

Chair and Chief Executive Andrew Inglis said: “Kosmos continued to deliver on its strategy with the commencement of production from the Jubilee South East development in July. The start up of the first of three key development projects for Kosmos is an important step to realizing the free cash flow inflection point we expect as production rises and capital spending starts to fall.

“Further production growth is expected later in the year as additional Jubilee wells come online. Our other key projects, Greater Tortue Ahmeyim Phase 1 in Mauritania and Senegal, and Winterfell in the US Gulf of Mexico continue to progress with first gas at Tortue expected in the first quarter of 2024 and first oil at Winterfell expected around the end of the first quarter of 2024.”

Kosmos shares fell 7.1% to 525.00 pence each on Monday morning in London.