Kosmos Energy Ltd on Tuesday reported substantial rises in net and pretax income for the first quarter, despite a decrease in revenue, and said production figures were in line with guidance.

Kosmos Energy is a Texas-based oil & gas producer focused on Ghana, Guinea and the US Gulf of Mexico.

Kosmos reported pretax income of $139.6 million, up from just $12.9 million for the same quarter in 2022. Net income increased to $83.3 million from $1.4 million.

Kosmos said revenue for the quarter decreased by 40% to $393.9 million from $659.0 million year on year. Total costs and expenses decreased by 61%, however, to $254.2 million from $646.2 million. These included a 33% drop in oil and gas production costs to $83.9 million from $124.7 million year on year.

Kosmos Energy recorded net production of 58,000 barrels of oil equivalent per day with sales of 61,100 boepd which it said was in line with its guidance, ending the quarter in a net overlift position. Its production expense for the period was $84 million or $15.26 per barrel of oil equivalent with capital expenditures of $206 million.

Net production was down from the 63,600 boepd average reported for 2022.

Kosmos reported lower production during the quarter at its Jubilee field in Ghana, saying this was primarily due to reduced water injection to manage reservoir pressure during drilling at the Jubilee Southeast development.

Kosmos Energy said it ended the quarter with approximately $2.3 billion of total long-term debt and $2.1 billion of net debt with available liquidity of approximately $1.0 billion.

Chair & Chief Executive Officer Andrew Inglis said: ‘Kosmos delivered solid performance in the first quarter and moved the company closer to the expected mid-year free cash flow inflection point. We have three development projects underway that aim to increase production by around 50% from current levels.

‘New oil production from Jubilee is expected online shortly, with capital expenditure starting to fall through the rest of the year...Kosmos has a busy year of catalysts ahead, having already delivered key milestones in the first quarter.’

Shares in Kosmos Energy were untraded at 498.50 pence on Tuesday morning in London. They were last traded on Friday.

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