- Kosmos Energy posts $111M Q1 loss, citing delayed liftings and heavy maintenance.
- The GTA project exports the first LNG cargo in April; the second cargo is now loading.
- Q2 production set to rise, with no major shutdowns planned for the rest of 2025.
Kosmos Energy reported a net loss of $111 million in Q1 2025, equivalent to $0.23 per diluted share. After adjusting for one-off items, the company recorded a net loss of $105 million, or $0.22 per share.
The company generated $290 million in revenue for the quarter, or $65.27 per barrel of oil equivalent (boe), excluding derivative settlements. Kosmos produced 60,500 boepd and sold 49,600 boepd, resulting in a 1.2 million boe underlift.
Planned maintenance in Ghana and the Gulf of Mexico temporarily reduced production, but Kosmos has completed the shutdowns. The company expects output to rise in Q2. Management reaffirmed its full-year production guidance of 70,000–80,000 boepd.
Kosmos and its partners exported the first LNG cargo from the Greater Tortue Ahmeyim (GTA) project in April, offshore Mauritania and Senegal. A second cargo is now loading. All four floating LNG (FLNG) trains operate above their nameplate capacity.
CEO Andrew Inglis emphasised Kosmos’ focus on cost control and free cash flow. “We’ve started increasing production and cut capital spending,” Inglis said. “The GTA cargo marks a major operational achievement.”
Kosmos spent $86 million on capital projects in Q1, falling below guidance. The savings came from lower costs for Ghana’s 4d seismic campaign and delayed drilling at Winterfell-4 in the Gulf of Mexico. The company aims to cut full-year capex below the original $400 million estimate.
Kosmos also made headway on its $25 million overhead reduction target. The company reported $167 million in production expenses, or $24.99/boe, excluding GTA-related costs. Negative free cash flow of $91 million reflected scheduled maintenance and delayed liftings.
By the end of Q1, Kosmos held $2.85 billion in net debt and $400 million in available liquidity. Supported by a strong reserve base, the company secured its $1.35 billion reserve-based lending (RBL) facility during the spring redetermination.
Kosmos expanded its oil hedging strategy during the quarter. The company now hedges about 40% of its remaining 2025 production, with a $65/boe floor and $80/boe ceiling.
Operations Snapshot
Mauritania & Senegal:
Kosmos and its partners exported the first GTA LNG cargo in early April and began loading a second. Net production reached 1,300 boepd. FLNG systems currently test 10% above their 2.7 mtpa nameplate capacity. Strong reservoir performance could reduce future drilling needs. Kosmos and partners also started work on GTA Phase 1+, a low-cost expansion to double gas sales using existing infrastructure.
Ghana:
Kosmos produced 33,000 boepd net and lifted two cargoes in Q1. Jubilee’s gross output averaged 66,600 bopd, affected by a planned FPSO shutdown from March 25 to April 8. Kosmos completed the shutdown on schedule and budget. The Noble Venturer rig will arrive in May to drill two wells in 2025 and four more in 2026, guided by new 4d seismic data.
Kosmos produced 5,300 boepd of gas, meeting expectations. At TEN, gross oil output averaged 16,900 bopd.
Gulf of Mexico:
Kosmos produced 17,200 boepd net, mainly oil, during the quarter. Maintenance at Kodiak impacted output. A remediation attempt at Winterfell-3 failed. The company plans a sidetrack to tap those reserves. Winterfell-4 drilling began and should reach production in Q3. Kosmos and partner Oxy continue to refine the Tiberius development using new seismic data to lower costs.
Equatorial Guinea:
Kosmos produced 9,000 bopd net, with gross output at 25,700 bopd. In line with its plan, the company lifted 0.5 cargoes during the quarter. A cost-effective healthy program should maintain production levels for the rest of the year.
Kosmos will host its Q1 earnings call and webcast today at 10:00 a.m. CT. Investors can access the call and a 90-day replay on the company’s website.
Kosmos Energy, listed on the NYSE and LSE under “KOS,” operates deepwater assets in Ghana, Equatorial Guinea, Mauritania, Senegal, and the U.S. Gulf of Mexico. The company prioritises transparency, ethical operations, and long-term value creation.