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Image courtesy of Kosmos Energy.

Kosmos Energy reported a fourth quarter loss on Tuesday on lower oil revenues.

Kosmos Energy reported a net loss of $56.7 million, or a loss of $0.15 per diluted share, for the fourth quarter compared to net income of $24 million in the same period last year.

When adjusted for certain items that impact the comparability of results, the company generated an adjusted net loss of $5.6 million for the fourth quarter of 2016.

Fourth quarter 2016 oil revenues were $156 million, down from $122 million in the year-ago period.

Fourth quarter oil sales rose to 3 million barrels of oil in 2016, up from 2.8 million barrels in 2015.

Kosmos said that fourth quarter 2016 oil revenues exclude $41 million of derivative settlements.

Realized oil revenues, including the impact of the company’s hedging program, were $66.63 per barrel of oil sold in the fourth quarter of 2016 compared to $67.85 per barrel of oil sold in the year-ago quarter.

At the end of the quarter, the Kosmos was in a net underlift position of 400,000 barrels of oil.

Production expense for the fourth quarter was $44 million, or $14.75 per barrel, compared to $30 million, or $10.50 per barrel, in the fourth quarter of 2015.

Kosmos said the increase in total production expense was primarily attributable to selling its initial cargo from TEN, that included one-time startup costs associated with field commissioning.

The company said the increase on a per barrel basis was the result of higher expenses from the TEN field and the additional operating costs related to the Jubilee turret bearing issue.

Exploration expenses totaled $76 million for the fourth quarter, compared to $24 million in the same period of 2015.

During the quarter, Kosmos booked $44 million of costs associated with the stacking of the Atwood Achiever as well as $31 million in seismic and geologic and geophysical costs primarily related to Mauritania and Senegal.

Depletion and depreciation expense for the quarter was $74 million, or $25.08 per barrel, up from $15.98 per barrel in the fourth quarter of 2015.

Kosmos said the decline was “primarily attributable to realizing the first TEN lifting,” that has a higher depletion rate than Jubilee and drove the blended rate higher.

General and administrative expenses declined 8 percent year-over-year were $28 million during the fourth quarter.

Full-year general and administrative expenses were down 36 percent from 2015 thanks to cost management and reduced equity-based compensation expense.

Kosmos said fourth quarter results included a mark-to-market loss of $14 million related to the company’s oil derivative contracts.

As of the end of December, the company’s hedging position had a total mark-to-market value of $2 million.

Total capital expenditures in the fourth quarter were $88 million.

Full year capital expenditures totaled $645 million, in-line with company forecasts.

Kosmos finished the fourth quarter 2016 with $1.2 billion of liquidity and $1.1 billion of net debt.

The company’s proved net reserves at the end of 2016 were 77 million barrels of oil equivalent.

Kosmos add that its previously announced $175 million net capex budget for 2017 is unchanged, and represents more than a 75 percent reduction from its 2015 net capex.