U.S. oil company Kosmos Energy saw its net loss double over the third quarter of 2018 despite a significant increase in revenues when compared to the prior-year period.
Kosmos Energy on Monday posted a net loss of $126.1 million as compared to net loss of $63.4 million in the same period last year.
Third quarter 2018 revenues were $243 million versus $151 million in the same quarter of 2017, on sales of 3.3 million barrels of oil equivalent (boe) in 2018 as compared to 2.9 million barrels in 2017.
Production expense for the third quarter was $55 million, or $16.57 per boe, versus $39 million, or $13.33 per barrel, in the third quarter of 2017.
Production expense per boe increased in the third quarter of 2018 compared to the same quarter a year ago primarily because the year ago quarter included insurance proceeds received related to the Jubilee FPSO turret bearing issue, and a credit accrual adjustment from the operator of the Jubilee and TEN fields, the company explained. Kosmos has a 24.1% interest in the Jubilee field and a 17% interest in the TEN fields.
The company’s total capital expenditures in the third quarter were $109 million, bringing the total year to date capital expenditures to $264 million. In 2019, Kosmos expects to invest approximately $500 to $600 million of net capital.
Andrew G. Inglis, chairman and chief executive officer, said: “Our 2019 capital budget is prioritized on our high-return opportunities with around 85% of the spend on infill drilling and infrastructure led exploration. With this focus on high-return projects we expect to deliver short and medium-term production and cash flow growth and shareholder returns, beginning with our inaugural dividend payment in the first quarter of 2019.”
Kosmos exited the third quarter of 2018 with approximately $668 million of liquidity and $1.94 billion of net debt. Liquidity includes $200 million of additional firm commitments under the company’s reserves-based loan facility.