Investing.com -- Shares of Kosmos Energy Ltd . (NYSE:KOS) soared 9% Thursday after the company, in partnership with BP (NYSE:BP) Plc, announced the achievement of first gas production at the Greater Tortue Ahmeyim (GTA) project.
The news comes as a welcome development for the energy firm, which had faced setbacks due to delays in the project's timeline.
The advancement towards first production of liquefied natural gas (LNG) is a critical step for Kosmos, with expectations set for the first LNG cargo to be shipped in the first quarter of 2025. Kosmos indicated in a press release that this milestone aligns with their projected timeline for revenue recognition from the GTA project, signaling a positive outlook for the company's financials.
The market's response reflects optimism following a period of underperformance for Kosmos, which was attributed to the repeated postponements in achieving first gas.
Jefferies analyst Mark Wilson, in a note dated Jan. 2, underscored the significance of this development, stating that achieving first gas production at the GTA project is "an important positive for KOS given the stock was the worst performer across our International E&P coverage in 2024 largely because of continued delays to this first gas timing.'"
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