Kosmos Energy swings to nine-month profit, extends RBL facility

Kosmos Energy PLC on Monday hailed "meaningful progress" as it swung to a nine-month pretax profit and amended and extended its reserve-based lending facility.

The oil and gas company, which operates in the Gulf of Mexico, Ghana and Equatorial Guinea, reported pretax profit of USD14.1 million for the nine months ended September 30, swinging from a USD264.3 million loss a year earlier.

Pretax loss for the third quarter narrowed to USD27.3 million from USD106.5 million a year earlier.

Nine-month revenue increased 29% to USD1.40 billion from USD995.2 million. Third-quarter revenue rose 32% to USD409.9 million from USD311.2 million.

Third-quarter production expense decreased 31% to USD102 million from approximately USD147.8 million a year earlier.

Net production increased 6% to 69,200 barrels of oil equivalent per day in the third quarter from approximately 65,283 barrels of oil equivalent per day a year earlier. Excluding Equatorial Guinea, where the company sold its interests in Ceiba Field and Okume Complex production assets in June, production increased 17%.

In June, Kosmos completed the sale of its interests in the Ceiba Field and Okume Complex production assets off the coast of Equatorial Guinea.

Kosmos reported third-quarter net capital expenditure of USD85 million, in line with guidance. It retained its full-year guidance of USD350 million.

Chair & Chief Executive Officer Andrew G. Inglis said the company continued to make "meaningful progress", highlighting the successful seven-well Jubilee drilling campaign in Ghana.

"Looking ahead, our focus remains clear, and we expect to make continued progress against our four strategic priorities, entering 2027 in a much stronger position with multiple catalysts across the portfolio to create additional value," Inglis said.

Separately, Kosmos announced that it had completed the amendment and extension of its reserve-based lending facility, which remains at USD1.20 billion, with USD750 million drawn.

The facility now matures in April 2033, extended from December 2029.

Kosmos said the facility is secured against production assets in Ghana and carries an interest margin of 4.5 percentage points above the secured overnight financing rate, down 0.25 percentage points from the previous margin.

Chief Financial Officer Neal Shah said: "The transaction extends a key source of liquidity out to 2033, improving our maturity profile and further strengthening our financial flexibility."

The company's focus following the transaction is "to reduce leverage, enhance liquidity and address our remaining near-term maturities as we position Kosmos for sustainable long-term value creation," he said.

Kosmos Energy shares were up 10% at 220.00 pence per share in London on Monday afternoon.

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