Kosmos plans further Tortue sale

Still, Kosmos can point to last year’s $250m of cash flow, the organic replacement of 130 per cent of production, and a $267m hedging gain as signs of balance, even if post-tax profits remain elusive.

That might change in 2019, if “interest from multiple third parties” in Tortue allows Kosmos to reduce its stake in the LNG development from 30 to 10 per cent. Given Tullow’s current showdown with the Ugandan government, analysts at RBC queried whether Kosmos might face a capital gains tax from any disposal.

That could be important, because balancing cash flows remains a high-wire act. This year, Kosmos says operating costs, taxes, depletion, depreciation and amortisation could amount to $45 a barrel; before corporate overheads of up to $125m; exploration costs of $120m; and perhaps $140m in interest payments. Little wonder the capital expenditure budget has been trimmed to between $425m and $475m.

Bloomberg Consensus gives revenue of $1.47bn, rising to $1.62bn in 2020.