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LONDON (Alliance News) - Kosmos Energy Ltd on Monday said its loss widened in the third quarter of 2018 as a result of significantly increased exploration and production expenses.
Pretax loss for the three months to the end of September widened to USD114.7 million from the USD64.9 million reported for the same period a year earlier, despite revenue growing to USD250.2 million from USD151.2 million.
Oil and gas revenue rose to USD242.8 million during the three-month period from USD151.2 million a year earlier, and net oil volume sold was 3.3 million barrels of oil, up from 2.9 million barrels of oil sold in the third quarter of 2017.
The company also said it gained USD7.7 million on sale of assets, compared with no such gain in the year before.
However, exploration expenses jumped in the third quarter to USD148.2 million from USD37.0 million, with general and administrative rising to USD26.0 million from USD20.0 million.
This comprised of costs related to ongoing seismic, geologic and geophysical surveys, and unsuccessful well drilling costs offshore Suriname.
Production expense for the third quarter was USD55 million, or USD16.57 per barrel of oil equivalent, versus USD39 million, or USD13.33 per barrel, in the third quarter of 2017.
Kosmos listed on the London Stock Exchange in August last year. Since then, in October 2017, it acquired three exploration licences in Equatorial Guinea, for a gross price of USD650.0 million.
In December last year, it also acquired four blocks in the Ivory Coast, holding 45% of the blocks, with BP PLC holding a further 45% and the country's national oil company the rest.
In August, Kosmos bought Deep Gulf Energy from First Reserve Corp for USD1.23 billion to start operations in Gulf of Mexico.
Kosmos currently has a market capitalisation of GBP2.24 billion.
Looking ahead, Kosmos said it expects to invest between USD500 million and USD600 million of net capital in 2019. The objective is to deliver on its short- and medium-term growth targets, ensure the long-term sustainability of the company, and deliver consistent returns to shareholders.
"The third quarter has been one of transition for Kosmos," said Chairman & Chief Executive Andrew Inglis.
"We expect to deliver short and medium-term production and cash flow growth and shareholder returns, beginning with our inaugural dividend payment in the first quarter of 2019," added Inglis.
Kosmos Energy shares were trading 0.4% higher on Monday at 516.00 pence each.