Talos Energy (TALO)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	126,727	48,913	317,481	494,660	384,387	460,059	192,403	-130,629	-184,623	-636,058	-699,219	-763,946	-430,030	-93,519	60,830	351,602	22,598	368,071	307,083	131,410
Revenue (ttm)	US$ in thousands	1,457,886	1,415,128	1,409,121	1,560,996	1,651,980	1,692,734	1,606,515	1,391,198	1,244,540	1,037,296	881,524	666,630	587,486	645,015	738,735	936,671	927,620	953,044	1,007,055	924,151
Pretax margin		8.69%	3.46%	22.53%	31.69%	23.27%	27.18%	11.98%	-9.39%	-14.83%	-61.32%	-79.32%	-114.60%	-73.20%	-14.50%	8.23%	37.54%	2.44%	38.62%	30.49%	14.22%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $126,727K ÷ $1,457,886K
= 8.69%

The pretax margin of Talos Energy Inc has shown variations over the past eight quarters. In Q1 2022, the company reported a negative pretax margin of -9.39%, indicating that expenses exceeded revenues before accounting for taxes. Subsequently, there was a significant improvement in Q2 2022, with a pretax margin of 11.99%, although still below the industry average. This positive trend continued in Q3 2022 and Q4 2022, with pretax margins of 27.20% and 23.27%, respectively.

In the following quarters of 2023, there was a noticeable decline in the pretax margin. Q1 2023 saw a substantial decrease to 31.69%, demonstrating a sharp decrease in profitability. This was followed by a further decline in Q2 2023 to 22.53% and Q3 2023 to 3.46%. Finally, Q4 2023 saw a slight recovery to 8.69%, although still lower than the margins reported in the previous year.

Overall, the pretax margin of Talos Energy Inc has shown volatility and fluctuation in recent quarters, indicating potential challenges in controlling costs and maintaining consistent profitability levels. Further analysis of the company's financial performance and cost management strategies may be necessary to address these fluctuations and improve overall profitability.