U.S. oil and gas company Kosmos Energy saw its net loss deepen during the fourth quarter 2017 despite higher oil revenues.
According to its financial report on Monday, for the fourth quarter of 2017, the company generated a net loss of $122.1 million as compared to net loss of $56.7 million in the same period of 2016.
When adjusted for certain items that impact the comparability of results, the company generated an adjusted net loss of $37.9 million for the fourth quarter of 2017.
Kosmos’ fourth quarter 2017 oil revenues rose to $187.1 million versus $156.1 million in the same quarter of 2016, on sales of 2.9 million barrels of oil in 2017 as compared to 3 million barrels in 2016.
Andrew G. Inglis, Kosmos chairman and chief executive officer, said: “We delivered more than $300 million in net cash flow which was used to diversify our production base and create another source of growth through the acquisition of assets offshore Equatorial Guinea, and reduce our net debt. In Ghana, Kosmos replaced more than 200 percent of production on a net proved basis.
“In exploration, we completed the second phase of drilling offshore Mauritania and Senegal, which resulted in the largest hydrocarbon discovery of the year.”
The company’s production expense for the fourth quarter was $46 million, or $15.75 per barrel, versus $44 million, or $14.75 per barrel, in the fourth quarter of 2016. Production expense per barrel increased in the fourth quarter of 2017 compared to the same quarter a year ago primarily because there were no LOPI claim reimbursements received in the fourth quarter of 2017.
Exploration expenses totaled $53 million for the fourth quarter, compared to $76 million in the same period of 2016 primarily the result of lower geologic and geophysical costs.
While Kosmos was carried for the Hippocampe-1 and Lamantin-1 exploration wells, $19 million of expenses related to the drilling rig that are not eligible for reimbursement were expensed during the quarter. Also included in the quarter was $18 million of expense related to the withdrawal from the Boujdour Maritime licenses.
Fourth quarter results included a mark-to-market loss of $96 million related to the company’s oil derivative contracts.
Total capital expenditures in the fourth quarter were $62 million. Full year capital expenditures totaled $57 million, net of the initial proceeds from the BP transaction of $222 million.
Kosmos exited the fourth quarter of 2017 with approximately $1.1 billion of liquidity and $1,020 million of net debt.