(Alliance News) - Kosmos Energy Ltd on Monday said it had more than halved quarterly net losses but remained a significant way off breaking even.
The Texas, US-based oil company posted a first-quarter net loss of USD90.8 million, narrowed from USD182.8 million in the previous year's comparable period. Loss before income tax for the first three months of 2021 was narrowed to GBP107.5 million from GBP117.2 million a year before.
For the quarter, revenue at Kosmos dropped slightly to USD176.6 million, down from USD177.8 million.
Shares were up 17% at 236.00 pence each in London on Monday morning, after the announcement.
Kosmos won't be paying a quarterly dividend, it said, compared to a 4.52 cent payout a year ago.
Kosmos also said it has completed the amendment and extension of its reserve-based lending facility. As part of the amendment, the overall facility size was lowered to USD1.25 billion from USD1.50 billion, to reduce reliance on the facility. The amendment also includes a two-year extension.
"2021 is off to a strong start with momentum building across the business," said Chair & Chief Executive Andrew Inglis.
"We have begun infill drilling activities in Ghana and the Gulf of Mexico, will soon begin drilling in Equatorial Guinea, and are on track to deliver our production and cash flow targets for the year.
"We have taken important steps to create a more permanent capital structure with the bond offering and the recently-completed reserve based lending extension, which increased liquidity and cleared all material near-term debt maturities."
By Will Paige; willpaige@alliancenews.com
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Kosmos Energy (KOS)