Kosmos Energy Ltd's (LSE:KOS, NYSE:KOS) performance last year was below expectations, but "there are signs of progress and some growth should be anticipated" for 2025, broker Panmure Liberum said.
Analyst Ashley Kelty, affirming his 'buy' rating but cutting his target price to 535p from 625p, summed up the year as one of "faltering progress".
Results showed revenues slip to $1.68 billion from $1.70 billion, with underlying profit (EBITDAX) of $1.07 billion compared to $1.24 billion and net profit of $189.9 million down from $213.5 million.
Net debt at December jumped to $2.71 billion after a cash outflow of $225.4 million in the year.
Production for the year averaged 64.26kboepd, up from 63.2kboepd, though the late start-up of the Greater Tortue Ahmeyim liquefied natural gas project offshore Mauritania and Senegal by operator BP and an "underwhelming" performance from Jubilee offshore Ghana proving a drag on growth and leading to the miss on expectations.
The talks with JV partner Tullow Oil were described by Kelly as "a brief flirtation", but Kosmos walked away before making an offer.
"Overall performance was below expectations, but there are signs of progress and some growth should be anticipated in FY25," said the analyst.
"We do remain bullish on longer term potential but would anticipate lower growth in FY25 and FY26 from limited activity levels and stretched project timelines."
The target price cut, Kelly said, reflected lower forecasts to reflect the results, plus latest guidance and a current set of economic price estimates.