Kosmos Energy has reported a second-quarter loss of US$199 million after reporting a profit in the same period a year earlier.
The Dallas-based company said it had a loss of 49 cents. Losses adjusted for one-time gains and costs were 23 cents per share.
Meanwhile, the independent oil and gas Company posted revenue of US$127.3 million in the same period.
The company’s shares closed at US$1.61. A year ago, they were trading at US$5.87.
Despite the recent stabilising of oil prices, the COVID-19 pandemic and its economic impact continue to create a challenging environment for the oil and gas sector.
“Kosmos’ response remains focused on safe and reliable operations by protecting the health of our employees and contractors, reducing the risk of the virus spreading in our operations and minimizing the impact on our business.
“We are also working closely with the local communities in the countries we operate in around the world to fight the virus,” the company said in a statement.
Commenting on the company’s second quarter 2020 performance, Chairman and Chief Executive Officer, Andrew G. Inglis said: “Kosmos delivered strong operational performance in the second quarter, despite a challenging backdrop for our industry. Production was in line with guidance and we are on track to deliver the cost reductions we set out earlier in the year.
“We have added an additional source of liquidity with the prepayment agreement, and total liquidity stood at over US$600 million at the end of the second quarter. At current oil prices, the company has reached a free cash flow inflection point and we expect to generate positive free cash flow through the second half of the year and into 2021.
“Looking forward, we continue to make good progress in Mauritania & Senegal despite the COVID-19 mitigations, with Phase 1 of the Tortue project now around 40 percent complete, a seven percent increase in the quarter, which supports the sell down process. We continue to mature our exploration portfolio focusing on high return, fast payback opportunities with several proven basin, infrastructure-led exploration targets and a self-funded basin-opening exploration program expected in 2021.”