Kosmos Energy Ltd. (NYSE/LSE: KOS) today reported a net loss of $88 million for the second quarter of 2025. The results reflect the company’s continued strategic focus on advancing key projects, including the Greater Tortue Ahmeyim (GTA) LNG project offshore West Africa, while implementing a revised, lower capital spending outlook for the year.
The company generated $393 million in revenue from an average of 73,200 barrels of oil equivalent per day (boepd) sold. Despite net production of 63,500 boepd falling below guidance due to initial delays at GTA and Ghana’s Jubilee field, Kosmos highlighted significant operational milestones. The Gimi floating LNG vessel achieved its Commercial Operations Date (COD), marking a critical step in the GTA project’s path toward its nameplate capacity of 2.7 million tons per annum (mtpa) by the fourth quarter of 2025.
CEO Andrew G. Inglis emphasized the company’s three core priorities: boosting production, cutting costs, and strengthening the balance sheet. “With production rising, costs falling and balance sheet resilience improving, we look forward to delivering long-term value for our shareholders,” Inglis stated.
Financial and Operational Summary
Kosmos reported an adjusted net loss of $93 million for the quarter. However, the company maintained a healthy financial position with $45 million in free cash flow and $127 million in operating cash flow. Capital expenditures for the quarter were $86 million, and management has revised its full-year capital expenditure guidance down from $400 million to approximately $350 million, reflecting enhanced spending discipline.
Project Developments and Outlook
- West Africa: The GTA project is on track to reach full operational capacity by Q4 2025. In Ghana, a new well (J-72) at the Jubilee field successfully came online with a gross output of 10,000 bopd. Further development at the Jubilee and TEN fields is planned for 2026.
- Gulf of Mexico: The Winterfell-4 well is scheduled to begin production later in the third quarter. Kosmos is also making progress on the Tiberius and Gettysburg developments in collaboration with partners Oxy and Shell.
- Equatorial Guinea: Production was impacted by subsea pump failures, with a return to normal output anticipated later in 2025.
Kosmos is managing market volatility through its hedging strategy, with approximately 5 million barrels of its 2025 production and 7 million barrels of its 2026 production hedged at favorable price floors.
The company’s full-year production guidance has been adjusted to between 65,000 and 70,000 boepd. Management expects a strong rebound in the second half of the year as additional wells in Ghana come online and GTA approaches full capacity. Future growth opportunities, including potential reserve upgrades in Ghana and exploration prospects in the Gulf of Mexico, position the company for long-term value creation.
