Kosmos Energy Ltd. (KOS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $56.70 million, or $ 0.15 a share in the quarter, against a net profit of $24 million, or $0.06 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $5.60 million, or $0.01 a share compared with a net profit of $17.56 million, or $0.05 a share in the last year period.
Revenue during the quarter surged 73.07 percent to $210.92 million from $121.87 million in the previous year period. Gross margin for the quarter expanded 377 basis points over the previous year period to 79.27 percent. Operating margin for the quarter stood at negative 0.90 percent as compared to a negative 6.16 percent for the previous year period.
"In 2016, Kosmos' diligent execution of its business strategy differentiated the company’s performance despite a challenging industry environment," said Andrew G. Inglis, chairman and chief executive officer. "With first oil from the TEN project, free cash flow from Ghana is now enhancing our strong financial position."
Operating cash flow drops significantly
Kosmos Energy Ltd. has generated cash of $52.08 million from operating activities during the year, down 88.19 percent or $388.70 million, when compared with the last year.
The company has spent $537.76 million cash to meet investing activities during the year as against cash outgo of $796.43 million in the last year. It has incurred net capital expenditure of $537.76 million on net basis during the year, down 32.48 percent or $258.67 million from year ago.
Cash flow from financing activities was $448.02 million for the year, up 462.60 percent or $368.38 million, when compared with the last year.
Working capital drops significantly
Kosmos Energy Ltd. has witnessed a decline in the working capital over the last year. It stood at $105.16 million as at Dec. 31, 2016, down 62.09 percent or $172.24 million from $277.41 million on Dec. 31, 2015. Current ratio was at 1.28 as on Dec. 31, 2016, down from 1.61 on Dec. 31, 2015.
Debt increases substantially
Kosmos Energy Ltd. has witnessed an increase in total debt over the last one year. It stood at $1,321.87 million as on Dec. 31, 2016, up 53.55 percent or $461 million from $860.88 million on Dec. 31, 2015. Kosmos Energy has witnessed an increase in long-term debt over the last one year. It stood at $1,321.87 million as on Dec. 31, 2016, up 53.55 percent or $461 million from $860.88 million on Dec. 31, 2015. Total debt was 39.56 percent of total assets as on Dec. 31, 2016, compared with 26.88 percent on Dec. 31, 2015. Debt to equity ratio was at 1.22 as on Dec. 31, 2016, up from 0.65 as on Dec. 31, 2015.
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