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Reach Energy Bhd (XKLS:5256) Gross Margin % : 88.04% (As of Dec. 2024)


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What is Reach Energy Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Reach Energy Bhd's Gross Profit for the three months ended in Dec. 2024 was RM42.8 Mil. Reach Energy Bhd's Revenue for the three months ended in Dec. 2024 was RM48.6 Mil. Therefore, Reach Energy Bhd's Gross Margin % for the quarter that ended in Dec. 2024 was 88.04%.


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

XKLS:5256' s Gross Margin % Range Over the Past 10 Years
Min: -16.4   Med: 34.2   Max: 59.08
Current: 57.44


During the past 10 years, the highest Gross Margin % of Reach Energy Bhd was 59.08%. The lowest was -16.40%. And the median was 34.20%.

XKLS:5256's Gross Margin % is ranked better than
82.77% of 894 companies
in the Oil & Gas industry
Industry Median: 28.53 vs XKLS:5256: 57.44

Reach Energy Bhd had a gross margin of 88.04% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Reach Energy Bhd was 0.00% per year.


Reach Energy Bhd Gross Margin % Historical Data

The historical data trend for Reach Energy Bhd'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.

Reach Energy Bhd Gross Margin % Chart

Reach Energy Bhd Annual Data
Trend Jul14 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.40 32.88 34.20 30.94 57.44

Reach Energy Bhd Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.65 54.40 53.52 36.72 88.04

Competitive Comparison of Reach Energy Bhd's Gross Margin %

For the Oil & Gas E&P subindustry, Reach Energy Bhd'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.


Reach Energy Bhd's Gross Margin % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Reach Energy Bhd's Gross Margin % falls into.


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Reach Energy Bhd Gross Margin % Calculation

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

Reach Energy Bhd's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=119.4 / 207.829
=(Revenue - Cost of Goods Sold) / Revenue
=(207.829 - 88.442) / 207.829
=57.44 %

Reach Energy Bhd's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=42.8 / 48.647
=(Revenue - Cost of Goods Sold) / Revenue
=(48.647 - 5.818) / 48.647
=88.04 %

* 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.

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.


Reach Energy Bhd  (XKLS:5256) 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

Reach Energy Bhd had a gross margin of 88.04% for the quarter that ended in Dec. 2024 => Durable 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.


Reach Energy Bhd Gross Margin % Related Terms

Thank you for viewing the detailed overview of Reach Energy Bhd's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Reach Energy Bhd Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Jalan Dutamas 1, D3-5-8, Block D3, Solaris Dutamas, Kuala Lumpur, SGR, MYS, 50480
Reach Energy Bhd is an oil and gas exploration and production company. It is engaged in the exploration, development and sale of crude oil and other petroleum products in the Republic of Kazakhstan, which also happens to be their single reportable segment. The company earns a majority of the revenue from exploration, development, production and sales of oil and other petroleum products in the Republic of Kazakhstan.

Reach Energy Bhd Headlines

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