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Beach Energy (Beach Energy) Gross Margin %

: 27.32% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Beach Energy's Gross Profit for the six months ended in Dec. 2023 was $172 Mil. Beach Energy's Revenue for the six months ended in Dec. 2023 was $631 Mil. Therefore, Beach Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 27.32%.

Warning Sign:

Beach Energy Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


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

BCHEY' s Gross Margin % Range Over the Past 10 Years
Min: 24.16   Med: 37.12   Max: 64.16
Current: 30.96


During the past 13 years, the highest Gross Margin % of Beach Energy was 64.16%. The lowest was 24.16%. And the median was 37.12%.

BCHEY's Gross Margin % is ranked better than
54.33% of 924 companies
in the Oil & Gas industry
Industry Median: 27.905 vs BCHEY: 30.96

Beach Energy had a gross margin of 27.32% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Beach Energy was -1.90% per year.


Beach Energy Gross Margin % Historical Data

The historical data trend for Beach Energy'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 36.75 [6] => 37.05 [7] => 37.18 [8] => 43.51 [9] => 35.20 )
Beach Energy Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.75 37.05 37.18 43.51 35.20

Beach Energy Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 38.67 47.41 35.16 35.23 27.32

Competitive Comparison

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


Beach Energy Gross Margin % Distribution

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

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



Beach Energy Gross Margin % Calculation

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

Beach Energy's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=381.9 / 1085.168
=(Revenue - Cost of Goods Sold) / Revenue
=(1085.168 - 703.222) / 1085.168
=35.20 %

Beach Energy's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=172.3 / 630.522
=(Revenue - Cost of Goods Sold) / Revenue
=(630.522 - 458.233) / 630.522
=27.32 %

* 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.


Beach Energy  (OTCPK:BCHEY) 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

Beach Energy had a gross margin of 27.32% for the quarter that ended in Dec. 2023 => Competition eroding margins


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.


Beach Energy Gross Margin % Related Terms

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


Beach Energy (Beach Energy) Business Description

Traded in Other Exchanges
Address
80 Flinders Street, Level 8, Adelaide, SA, AUS, 5000
Beach produces oil, gas, and gas liquids from numerous joint ventures in the onshore Cooper and Eromanga basins. Beach merged with Cooper Basin joint-venture partner Drillsearch Energy Limited in March 2016, which increased equity production to about 10 million barrels of oil equivalent. This more than doubled to over 20 million barrels of oil equivalent following the successful purchase of Lattice from Origin Energy in 2018. The average field life is 10 years based on forecast production and 255 mmboe of proven and probable reserves. We credit life of around 15 years, assuming substantial conversion of 2C contingent resources into reserve category with drilling. Shale gas resources are blue-sky.

Beach Energy (Beach Energy) Headlines

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