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(Alliance News) - Kosmos Energy Ltd on Monday announced the appointment of a new finance chief and reported a swing to profit in 2019 thanks to a surge in oil and gas revenue.
The company will promote Neal Shah, its current senior vice president & deputy chief financial officer, to the role of chief financial officer. This follows CFO Thomas Chambers informing Kosmos of its impending May retirement.
Kosmos said Shah, who joined the company in 2010, has served "in a series of roles of increasing responsibility" within finance and investor relations. Most recently Shah was involved in international operations, heading Kosmos's Equatorial Guinea business unit. Before joining Kosmos Shah worked at Morgan Stanley as an investment banker, where he assisted oil and gas companies.
The offshore oil and gas exploration and production firm posted a USD25.1 million pretax profit for 2019, swinging from a USD50.9 million loss the previous year as revenue surged 67% to USD1.51 billion from USD902.4 million.
This higher revenue figure resulted from a sharp 69% rise in oil and gas revenue to USD1.50 billion from USD886.7 million.
In the fourth quarter alone, Kosmos's performance was less impressive due to an explosion in costs and expenses to USD462.5 million from only USD22.5 million, including " a mark-to-market loss of USD36 million related to the company's oil derivative contracts". This meant a swing to a USD2.3 million pretax loss in the three months ended December 31 from a USD287.0 million profit despite Kosmos's 49% revenue rise to USD460.2 million from USD309.5 million.
For 2019 as whole, Kosmos declared dividends totalling USD0.1808 per share versus nothing in 2018. The firm has additionally declared a USD0.0452 per share quarterly cash dividend which is payable on March 26.
Chair & Chief Executive Andrew Inglis said: "2019 was a strong year for Kosmos with the business generating approximately USD250 million of free cash flow, the third successive year of material organic cash generation. Our free cash flow enabled us to reduce our leverage and initiate the payment of our dividend, in line with our strategy of protecting the balance sheet and delivering shareholder returns."
Inglis added: "Kosmos is integrating climate risk into its business strategy and we see the energy transition as a major opportunity for progressive companies like Kosmos to play an important role. Today, we will present our climate policy as part of our wider environmental, social and governance responsibilities, with a commitment to both transparency and emissions reduction. With a diverse portfolio of advantaged oil and gas assets, Kosmos is well-positioned to deliver shareholder value while advancing the societies in which we work."
Shares in Kosmos were untraded on Monday, last closing at 395.25 pence in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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