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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Oil & Gas

Kosmos Energy shares fall as first quarter dented by crude derivatives

Revenues increased compared to the same period last year, but, hedging arrangements saw quarterly losses widen.

Kosmos Energy Ltd (LON:KOS) shares were on the back foot, down 8p or 1.54%, after releasing first quarter results with a wider US$50mln loss, compared to US$28.8mln in the same period of last year.

Revenue for the quarter amounted to US$127.2mln, up from US$103.4mln in the 2017 comparative, reflecting improved crude prices as oil sales were slightly lower, at 1.9mln barrels compared to 2mln barrels.

READ: Kosmos boasts of “strong delivery” as fourth quarter revenues rise

The company marked a US$38mln loss related oil derivative contracts and it noted that its hedging position, at the end of March, the net commodity liability was valued at US$116mln – it had 19mln barrels of crude under contract through 2018 and 2019.

"Kosmos is off to a good start in 2018 across all three areas of our business," said Andrew Inglis, chief executive.

"Strong and growing production from our high-margin assets in Ghana and Equatorial Guinea continues to generate significant free cash flow, underpinning our solid financial position.

“The Tortue gas development, which represents the next phase of major production growth for Kosmos, continues to move forward at pace with all FEED contracts now awarded and a clear path to FID around year end.”

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