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Hess Gross Margin %

: 72.45% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Hess's Gross Profit for the three months ended in Jun. 2022 was $2,141 Mil. Hess's Revenue for the three months ended in Jun. 2022 was $2,955 Mil. Therefore, Hess's Gross Margin % for the quarter that ended in Jun. 2022 was 72.45%.


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

HES' s Gross Margin % Range Over the Past 10 Years
Min: -31.96   Med: 36.72   Max: 67.49
Current: 67.49


During the past 13 years, the highest Gross Margin % of Hess was 67.49%. The lowest was -31.96%. And the median was 36.72%.

HES's Gross Margin % is ranked better than
85.88% of 928 companies
in the Oil & Gas industry
Industry Median: 27.51 vs HES: 67.49

Hess had a gross margin of 72.45% for the quarter that ended in Jun. 2022 => Durable competitive advantage

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


Hess Gross Margin % Historical Data

The historical data trend for Hess'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.

Hess Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.68 49.58 45.45 26.81 60.81

Hess Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 52.88 58.84 65.89 69.26 72.45

Competitive Comparison

For the Oil & Gas E&P subindustry, Hess'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.

   

Hess Gross Margin % Distribution

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

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



Hess Gross Margin % Calculation

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

Hess's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=4544 / 7473
=(Revenue - Cost of Goods Sold) / Revenue
=(7473 - 2929) / 7473
=60.81 %

Hess's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=2141 / 2955
=(Revenue - Cost of Goods Sold) / Revenue
=(2955 - 814) / 2955
=72.45 %

* 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.


Hess  (NYSE:HES) 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

Hess had a gross margin of 72.45% for the quarter that ended in Jun. 2022 => 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.


Hess Gross Margin % Related Terms

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


Hess Business Description

Hess logo
Address
1185 Avenue of the Americas, New York, NY, USA, 10036
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2021, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 315 thousand barrels of oil equivalent per day in 2021, at a ratio of 69% oil and natural gas liquids and 31% natural gas.
Executives
Glatch Lisa director EVOQUA WATER TECHNOLOGIES CORP. 210 SIXTH AVENUE PITTSBURGH PA 15222
Mcguire Raymond J director 5 GIRALDA FARMS MADISON NJ 07940
Lipschultz Marc S director C/O KOHLBERG KRAVIS ROBERTS & CO 9 WEST 57TH ST NEW YORK NY 10019
Ovelmen Karyn F. director STATIONSPLEIN 45 ROTTERDAM P7 3013AK
Schoonman Geurt G officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Duato Joaquin director ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Lynch Richard D. officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Coleman Leonard S Jr director C/O ELECTRONIC ARTS INC. 209 REDWOOD SHORES PARKWAY REDWOOD CITY, CA 94065
Slentz Andrew P officer: Senior Vice President 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Lowery-yilmaz Barbara J officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Truelove Brian D. officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Goodwillie Eugene W. Jr. 10 percent owner HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Checki Terrence J. director HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Fishman Eric S. officer: Vice President and Treasurer HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Mcmanus David director 5205 N O'CONNOR BLVD SUITE 200 IRVING TX 75039

Hess Headlines

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