For the first quarter of 2017, Kosmos Energy generated a net loss of $28.8 million, or $0.07 per diluted share as compared to net loss of $59.0 million or $0.15 per diluted share 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 $42.7 million or $0.11 per diluted share for the first quarter of 2017.
“Kosmos is off to a strong start executing on our plan in 2017,” said Andrew G. Inglis, Chairman and Chief Executive Officer (CEO).
“The strong cash flow generation of the business, in combination with the closing of our Mauritania and Senegal transactions with BP, has allowed Kosmos to improve its financial strength. In addition, our continued exploration success with the Yakaar-1 well in Senegal supports our belief that the basin is one of the largest petroleum systems to be opened along the Atlantic Margin.”
First quarter 2017 oil revenues were $103 million versus $62 million in the same quarter of 2016, on sales of 2.0 million barrels of oil in 2017 as compared to 1.9 million barrels in 2016.
First quarter 2017 oil revenues exclude $11 million of derivative settlements.
Realized oil revenues, including the impact of the company’s hedging programme, were $58.12 per barrel of oil sold in the first quarter of 2017 compared to $62.64 per barrel of oil sold in the year-ago quarter.
Kosmos currently has approximately 5 million barrels of oil hedged in 2017 and approximately 6 million in 2018 with an average floor price of approximately $59 per barrel and $53 per barrel, respectively.
At the end of the quarter, the company was in a net underlift position of approximately 0.8 million barrels of oil.
Other income, net during the quarter was $49 million for loss of production income (LOPI) insurance proceeds, net associated with the Jubilee turret bearing issue which covers the production period through February 2017.
Production expense for the first quarter was $20 million, or $10.06 per barrel, versus $29 million, or $15.50 per barrel in the first quarter of 2016.
The decrease in total production expense was primarily attributable to insurance proceeds received during 2017.
Facilities insurance modifications expense during the first quarter was $3 million, net of insurance proceeds.
These costs are related to converting the Jubilee FPSO into a permanently spread moored production facility.