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(Sharecast News) - Kosmos Energy shares on Monday after the oil and gas producer reported higher third-quarter production, lower operating costs and progress in reducing its debt burden.
The company reported a net loss of $43m, or $0.07 per share, for the three months to September, down from $124m and $0.26 the year before, respectively.
Revenues reached $410m, up from $311m previously, while net production averaged 69,200 barrels of oil equivalent per day (boepd), up 6% on the same period last year, or 17% excluding the impact of the sale of its Equatorial Guinea assets.
The bottom line was also helped by a 31% drop in production expenses to $102m.
Net debt has fallen by more than $500m so far this year to $2.47bn, with the company maintaining its target of a 20% reduction in 2026. It expects net debt to fall below $2.4bn by year-end, with leverage approaching two times earnings.
Chairman and chief executive Andrew Inglis said the company had made progress against its priorities of increasing production, cutting costs, reducing debt and advancing growth opportunities.
"Through a combination of strong operational execution, reduced costs, disciplined capital allocation and proactive financing, we continue to strengthen our business," he said.
Kosmos separately announced the successful amendment and extension of its $1.2bn reserve-based lending facility, extending its maturity from December 2029 to April 2033. The facility has $750m drawn, with scheduled repayments not expected to begin until 2031.
Looking ahead, the group maintained its full-year capital expenditure guidance of approximately $350m and forecast fourth-quarter production of 60,000 to 64,000 boepd.
The stock was up 8.8% at 217.6p in morning trade.
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