Frontera Resources (LSE:FRR) Gross Margin % : -42.60% (As of Jun. 2018)

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What is Frontera Resources Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Frontera Resources's Gross Profit for the six months ended in Jun. 2018 was £-0.59 Mil. Frontera Resources's Revenue for the six months ended in Jun. 2018 was £1.38 Mil. Therefore, Frontera Resources's Gross Margin % for the quarter that ended in Jun. 2018 was -42.60%.

The historical rank and industry rank for Frontera Resources's Gross Margin % or its related term are showing as below:

LSE:FRR' s Gross Margin % Range Over the Past 10 Years
Min: -173.37 Med: 23.89 Max: 43.37
Current: -96.96

During the past 13 years, the highest Gross Margin % of Frontera Resources was 43.37%. The lowest was -173.37%. And the median was 23.89%.

LSE:FRR's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 28 vs LSE:FRR: -96.96

Frontera Resources had a gross margin of -42.60% for the quarter that ended in Jun. 2018 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Frontera Resources was 0.00% per year.

Frontera Resources Gross Margin % Historical Data

The historical data trend for Frontera Resources's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Frontera Resources Gross Margin % Chart

Frontera Resources Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Gross Margin %

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23.96

23.90

-82.58

-148.38

-173.34

Frontera Resources Semi-Annual Data
	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18
Gross Margin %	Get a 7-Day Free Trial														-45.59	-340.41	-162.88	-187.78	-42.60

Competitive Comparison of Frontera Resources's Gross Margin %

For the Oil & Gas E&P subindustry, Frontera Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Frontera Resources's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Frontera Resources's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Frontera Resources's Gross Margin % falls into.

Frontera Resources Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Frontera Resources's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )	=	Gross Profit (A: Dec. 2017 )	/	Revenue (A: Dec. 2017 )
	=	-3.3	/	1.928
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.928 - 5.27)	/	1.928
	=	-173.34 %

Frontera Resources's Gross Margin for the quarter that ended in Jun. 2018 is calculated as

Gross Margin % (Q: Jun. 2018 )	=	Gross Profit (Q: Jun. 2018 )	/	Revenue (Q: Jun. 2018 )
	=	-0.6	/	1.378
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.378 - 1.965)	/	1.378
	=	-42.60 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frontera Resources (LSE:FRR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Frontera Resources had a gross margin of -42.60% for the quarter that ended in Jun. 2018 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Frontera Resources Gross Margin % Related Terms

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Frontera Resources (LSE:FRR) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

3040 Post Oak Boulevard, Suite 1100, Houston, TX, USA, 77056

Website

http://www.fronteraresources.com

Frontera Resources Corp is an international oil and gas exploration and production company. The company, along with its subsidiaries is principally engaged in the development of oil and gas projects. The company develops reserves in known hydrocarbon-bearing basins in the Republic of Georgia. Frontera's current focus is targeted on exploiting a Greater Black Sea initiative, regionally building from its core operations in the country of Georgia.

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