Kosmos Energy reported a Q2 2025 net loss of $88 million and adjusted net loss of $93 million, but achieved operational milestones such as the successful commencement of commercial operations for the Gimi floating LNG vessel at the Greater Tortue Ahmeyim project. The company generated $127 million in cash flow from operations and $45 million in free cash flow, and revised its full-year capital expenditure guidance down to $350 million.
Kosmos Energy Ltd. (KOS) reported its Q2 2025 earnings, revealing a larger-than-expected loss with an EPS of -$0.19, compared to the forecasted -$0.05. Revenue also fell short of expectations, coming in at $393.5 million against a forecast of $414.63 million. Following these results, Kosmos Energy’s stock dropped 2.56% in pre-market trading, closing at $1.88.
The company achieved significant milestones, including the start of commercial operations for the Gimi floating LNG vessel at the Greater Tortue Ahmeyim project. Despite this, the company reported a net loss of $88 million and an adjusted net loss of $93 million. The company generated $127 million in cash flow from operations and $45 million in free cash flow.
Kosmos Energy reduced its full-year CapEx guidance from $400 million to $350 million. The company's performance in Q2 2025 was marked by increased production, primarily due to the GTA project coming online. The reduced CapEx guidance indicates a strategic shift to optimize resources amidst fluctuating oil prices.
Following the earnings announcement, Kosmos Energy’s stock fell by 2.56% in pre-market trading, closing at $1.88. This decline reflects investor disappointment with the earnings miss. The stock remains near its 52-week low of $1.385, indicating ongoing market challenges.
Looking ahead, Kosmos Energy maintains a CapEx envelope of $350 million for 2025-2026. The company is targeting the GTA Phase One Plus expansion and exploring domestic gas sales in Senegal and Mauritania. Despite the current quarter’s shortfall, projections for future quarters show a gradual improvement in EPS and revenue.
References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-kosmos-energy-q2-2025-reveals-eps-miss-stock-falls-93CH-4168373
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