American oil company Kosmos Energy went from black to red during the third quarter of 2016 as opposed to its performance in the prior-year quarter. The company’s revenues decreased on lower oil sales.
According to Kosmos’ 3Q 2016 report on Monday, for the third quarter of 2016, the company generated a net loss of $59.8 million, as compared to net income of $60.3 million in the same period last year. When adjusted for certain items that impact the comparability of results, the company generated an adjusted net loss of $36.5 million for the third quarter of 2016.
The company’s third quarter 2016 oil revenues were $47 million versus $97 million in the same quarter of 2015, on sales of 0.9 million barrels of oil for 2016 as compared to 1.9 million barrels in 2015.
Production expense for the current quarter was $14 million, or $14.33 per barrel, versus $23 million, or $12.52 per barrel, in the third quarter of 2015. The company explained that the decrease in total production expense was primarily attributable to selling one cargo during the third quarter 2016 as compared to two cargos sold in 2015.
The company also said that the increase on a per barrel basis was impacted by the additional operating costs related to the Jubileee field FPSO turret bearing issue. Namely, the Jubilee FPSO was damaged earlier this year which was followed by a change to operating procedures at the FPSO.
Kosmos’ exploration expenses totaled $66 million for the third quarter, compared to $19 million in the same period of 2015. Included in the quarter were approximately $47 million of costs associated with the stacking of Atwood Oceanics’ drillship Atwood Achiever that the company previously used for operations offshore Mauritania and Senegal.
The drillship is under the contract with Kosmos until November 2018 but Kosmos elected a standby period that started on June 1, 2016 at 95% of operating rate.
Offshore Energy Today Staff