Kosmos Energy Ltd (KOS) saw its loss narrow to $28.84 million, or $0.07 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $58.99 million, or $0.15 a share. On the other hand, adjusted net loss for the quarter widened to $42.68 million, or $0.11 a share from a loss of $14.55 million or $0.04 a share, a year ago. Revenue during the quarter surged 144.58 percent to $151.97 million from $62.13 million in the previous year period. Gross margin for the quarter expanded 3422 basis points over the previous year period to 86.91 percent. Operating margin for the quarter stood at negative 17.75 percent as compared to a negative 64.87 percent for the previous year period.
Operating loss for the quarter was $26.97 million, compared with an operating loss of $40.30 million in the previous year period.
“Kosmos is off to a strong start executing on our plan in 2017” said Andrew G. Inglis, chairman and chief executive officer. “The strong cash flow generation of the business in combination with the closing of our Mauritania and Senegal transactions with BP, has allowed Kosmos to improve its financial strength. In addition, our continued exploration success with the Yakaar-1 well in Senegal, supports our belief that the basin is one of the largest petroleum systems to be opened along the Atlantic Margin.”
Operating cash flow turns negative
Kosmos Energy Ltd has spent $30.38 million cash to meet operating activities during the quarter as against cash inflow of $15.62 million in the last year period. Cash flow from investing activities was $171.84 million for the quarter as against cash outgo of $226.62 million in the last year period.
The company has spent $151.12 million cash to carry out financing activities during the quarter as against cash inflow of $148.93 million in the last year period.
Cash and cash equivalents stood at $153.19 million as on Mar. 31, 2017, down 38.42 percent or $95.59 million from $248.79 million on Mar. 31, 2016.
Working capital increases
Kosmos Energy Ltd has recorded an increase in the working capital over the last year. It stood at $201.04 million as at Mar. 31, 2017, up 5.98 percent or $11.35 million from $189.69 million on Mar. 31, 2016. Current ratio was at 1.58 as on Mar. 31, 2017, up from 1.50 on Mar. 31, 2016.
Days sales outstanding went down to 100 days for the quarter compared with 171 days for the same period last year.
At the same time, days payable outstanding went up to 1162 days for the quarter from 825 for the same period last year.
Debt moves up
Kosmos Energy Ltd has witnessed an increase in total debt over the last one year. It stood at $1,174.68 million as on Mar. 31, 2017, up 15.89 percent or $161.08 million from $1,013.60 million on Mar. 31, 2016. Kosmos Energy has witnessed an increase in long-term debt over the last one year. It stood at $1,174.68 million as on Mar. 31, 2017, up 15.89 percent or $161.08 million from $1,013.60 million on Mar. 31, 2016. Total debt was 36.90 percent of total assets as on Mar. 31, 2017, compared with 31.33 percent on Mar. 31, 2016. Debt to equity ratio was at 1.11 as on Mar. 31, 2017, up from 0.79 as on Mar. 31, 2016.
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