Kosmos Energy (KOS) saw a major increase in production last year, but costs and its tax bill kept it in the red. The oil and gas producer’s cash profits excluding exploration expenses (Ebitdax) climbed almost a third to $990m (£767m) for the year, while its adjusted net loss was $21m compared with $189m in 2018.
Production was 65,200 barrels of oil equivalent per day (boepd) in the December quarter, and the company has guided 2020 production at 62,000-70,0000boepd. Kosmos shares were off 10 per cent on the 2019 numbers, and it also announced its deputy finance boss would be taking over from retiring chief financial officer Tom Chambers in May.
The independent’s focus was exploration in 2019, with big finds at the BP-operated Greater Tortue Ahmeyim project in Senegal and Mauritania. The company did not continue this run all through the year, however, with two unsuccessful wells in its Gulf of Mexico holdings, costing $75m.
To fund its share of development at Tortue, the company is selling off two thirds of its 30 per cent interest, which will go towards its $250m share of 2020 capex at the project. Kosmos said its non-Senegal and Mauritania capital spending would be $325m-$375m this year.
Last year was Kosmos’ first full year as a dividend payer, which it committed to on the basis of its “future prospects”, and it kept a quarterly payout of 4.52ȼ through the year.
Consensus estimates compiled by Bloomberg put 2020 cash profits at $944m, 15 per cent ahead of 2019.
| KOSMOS ENERGY (KOS) | ||||
| ORD PRICE: | 357p | MARKET VALUE: | £ 1.4bn | |
| TOUCH: | 345-362p | 12-MONTH HIGH: | 581p | LOW: 339p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | NA | |
| NET ASSET VALUE: | 210ȼ | NET DEBT: | 216% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
| 2015 | 0.45 | 85.4 | 18.0 | nil |
| 2016 | 0.39 | -295 | -74.0 | nil |
| 2017 | 0.64 | -178 | -57.0 | nil |
| 2018 | 0.90 | -50.9 | -23.0 | 4.52 |
| 2019 | 1.50 | 25.1 | -14.0 | 18.08 |
| % change | +66 | - | - | +300 |
| Ex-div: | 04 Mar | |||
| Payment: | 26 Mar | |||
| £1=$1.30 | ||||
