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Beach Energy (ASX:BPT) Operating Margin % : 24.87% (As of Dec. 2023)


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What is Beach Energy Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Beach Energy's Operating Income for the six months ended in Dec. 2023 was A$234 Mil. Beach Energy's Revenue for the six months ended in Dec. 2023 was A$942 Mil. Therefore, Beach Energy's Operating Margin % for the quarter that ended in Dec. 2023 was 24.87%.

Good Sign:

Beach Energy Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

ASX:BPT' s Operating Margin % Range Over the Past 10 Years
Min: -32.22   Med: 27.43   Max: 39.79
Current: 28.47


ASX:BPT's Operating Margin % is ranked better than
78.77% of 975 companies
in the Oil & Gas industry
Industry Median: 7.96 vs ASX:BPT: 28.47

Beach Energy's 5-Year Average Operating Margin % Growth Rate was 3.10% per year.

Beach Energy's Operating Income for the six months ended in Dec. 2023 was A$234 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$496 Mil.


Beach Energy Operating Margin % Historical Data

The historical data trend for Beach Energy's Operating 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.

Beach Energy Operating Margin % Chart

Beach Energy Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.56 33.48 25.96 39.79 32.79

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
Operating 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 36.78 42.21 32.88 32.70 24.87

Competitive Comparison of Beach Energy's Operating Margin %

For the Oil & Gas E&P subindustry, Beach Energy's Operating Margin %, along with its competitors' market caps and Operating 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's Operating Margin % Distribution in the Oil & Gas Industry

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

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



Beach Energy Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=530.2 / 1616.9
=32.79 %

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

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=234.3 / 942
=24.87 %

* 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.


Beach Energy  (ASX:BPT) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Beach Energy Operating Margin % Related Terms

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Beach Energy (ASX:BPT) 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.