Kosmos Energy Ltd on Monday said it reached its year-end leverage target ahead of schedule and reported a significant jump in revenue.

Kosmos Energy is an oil & gas producer focused on Ghana, Guinea and the US Gulf of Mexico.

For the third quarter of 2022, Kosmos swung to a pretax profit of $330.0 million from a loss of £28.0 million a year before. Revenue more than doubled to $456.1 million from $200.5 million, as total costs and expenses fell 45% to $126.1 million from $228.5 million.

Kosmos said total net production averaged around 60,900 barrels of crude oil equivalent per day, in line with guidance. This is up 20% from 49,300 barrels of crude oil equivalent per day a year ago.

Kosmos in August had guided for 63,000 to 67,000 barrels equivalent per day for the all of 2022.

It exited the third quarter with $2.1 billion of net debt. Kosmos said it has achieved its target net leverage ratio of 1.5 times ahead of schedule with ‘further progress expected in the next quarter at current prices’.

Chair & Chief Executive Officer Andrew Inglis said: ‘Kosmos posted another quarter of solid strategic and operational delivery, with the company reaching its year-end leverage target ahead of schedule. Demand for energy is growing, particularly in Africa, and Kosmos has the right strategy at the right time to help meet this growing demand while creating value for all of our stakeholders.’

Kosmos reported net capital expenditure for the quarter of around $203 million. It said full-year capital expenditure guidance remains around $700 million, excluding acquisitions and divestitures.

Shares were down 2.1% at 587.50 pence each on Monday morning in London.

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