Hess Corporation (HES)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 4,354,000 | 4,111,000 | 4,064,000 | 3,282,000 | 2,471,000 | 2,795,000 | 2,866,000 | 3,583,000 | 3,681,000 | 3,240,000 | 2,680,000 | 1,733,000 | 1,490,000 | 967,000 | 461,000 | 54,000 | -2,850,000 | -2,959,000 | -2,821,000 | -2,383,000 |
| Revenue (ttm) | US$ in thousands | 12,843,000 | 12,713,000 | 12,322,000 | 11,409,000 | 10,511,000 | 10,434,000 | 10,756,000 | 11,422,000 | 11,324,000 | 10,627,000 | 9,264,000 | 7,888,000 | 7,473,000 | 6,557,000 | 5,957,000 | 5,211,000 | 4,667,000 | 5,029,000 | 5,450,000 | 6,277,000 |
| Pretax margin | 33.90% | 32.34% | 32.98% | 28.77% | 23.51% | 26.79% | 26.65% | 31.37% | 32.51% | 30.49% | 28.93% | 21.97% | 19.94% | 14.75% | 7.74% | 1.04% | -61.07% | -58.84% | -51.76% | -37.96% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,354,000K ÷ $12,843,000K
= 33.90%
Hess Corporation's pretax margin, a key profitability metric, has shown a fluctuating trend over the quarters. Starting with negative margins in early 2020, the company faced significant challenges, indicating operational inefficiencies and possibly adverse economic conditions. However, a notable turnaround commenced in the first quarter of 2021, with a positive pretax margin of 1.04%, signaling improved cost management or increased revenue generation.
The positive trajectory continued throughout 2021 and into 2022, with pretax margins steadily increasing, reaching a peak of 33.90% by the end of December 2024. This upward trend suggests enhanced operational efficiency, better cost control, or increased revenue relative to costs.
Despite some fluctuations in the following quarters, the company managed to maintain relatively high pretax margins above 25%, indicating overall sustained profitability. This performance may be attributed to successful strategic initiatives, effective cost management strategies, or favorable market conditions.
Overall, the pretax margin analysis demonstrates Hess Corporation's ability to improve profitability over time and suggests a positive outlook for the company's financial performance. However, continuous monitoring and analysis of this metric will be essential to ensure sustained profitability and operational excellence.
Peer comparison
Dec 31, 2024