Kosmos Energy Ltd. (KOS) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $59.76 million, or $ 0.15 a share in the quarter, against a net profit of $60.26 million, or $0.15 a share in the last year period. On adjusted basis, net loss for the quarter stood at $36.50 million, or $0.09 a share compared with a net profit of $7.42 million, or $0.02 a share in the last year period. Revenue during the quarter plunged 30.10 percent to $66.63 million from $95.32 million in the previous year period. Gross margin for the quarter expanded 392 basis points over the previous year period to 79.63 percent. Operating margin for the quarter stood at negative 88.37 percent as compared to a negative 9.89 percent for the previous year period.
Operating loss for the quarter was $58.88 million, compared with an operating loss of $9.43 million in the previous year period.
Commenting today, Andrew G. Inglis, chairman and chief executive officer, said: "With the delivery of first oil from the TEN project and progress toward restoring full operating capability at Jubilee, our asset in Ghana has reached an important inflection point. We are now generating the free cash flow that will enable Kosmos to continue to grow organically. In addition, the quality of our exploration portfolio has never been stronger. Following our world-class gas discoveries offshore Mauritania and Senegal, we are currently designing a multi-well drilling program, to begin mid-2017, that we believe will target some of the largest un-drilled exploration prospects identified along the Atlantic Margins."
Operating cash flow turns negativeKosmos Energy Ltd. has spent $65.62 million cash to meet operating activities during the nine month period as against cash inflow of $272.48 million in the last year period. The company has spent $548.41 million cash to meet investing activities during the nine month period as against cash outgo of $541.04 million in the last year period. It has incurred net capital expenditure of $507.05 million on net basis during the nine month period, down 4.59 percent or $24.39 million from year ago period.
Cash flow from financing activities was $448.07 million for the nine month period, up 461.76 percent or $368.31 million, when compared with the last year period.
Cash and cash equivalents stood at $109.04 million as on Sep. 30, 2016, down 70.21 percent or $257 million from $366.04 million on Sep. 30, 2015.
Working capital drops significantly
Kosmos Energy Ltd. has witnessed a decline in the working capital over the last year. It stood at $104.14 million as at Sep. 30, 2016, down 71.23 percent or $257.91 million from $362.05 million on Sep. 30, 2015. Current ratio was at 1.37 as on Sep. 30, 2016, down from 1.80 on Sep. 30, 2015.
Days sales outstanding went up to 163 days for the quarter compared with 132 days for the same period last year.
At the same time, days payable outstanding went up to 1097 days for the quarter from 813 for the same period last year.
Debt increases substantially
Kosmos Energy Ltd. has witnessed an increase in total debt over the last one year. It stood at $1,319.09 million as on Sep. 30, 2016, up 46.67 percent or $419.74 million from $899.36 million on Sep. 30, 2015. Kosmos Energy has witnessed an increase in long-term debt over the last one year. Total debt was 39.95 percent of total assets as on Sep. 30, 2016, compared with 28.96 percent on Sep. 30, 2015. Debt to equity ratio was at 1.17 as on Sep. 30, 2016, up from 0.70 as on Sep. 30, 2015.
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