Financial Analysis of Beach Energy Limited and Senex Energy Limited

HC2091 Business Finance
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Contents
Introduction......................................................................................................................................3
Company’s Overview......................................................................................................................4
Content.............................................................................................................................................5
Recommendation:..........................................................................................................................13
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15
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Introduction
This report deals with the evaluation of the two companies’ performances and the operations by
analysing their financial accounts. For this analysis the secondary information has been taken
from the annual report of both the companies so that the technical issues of the organization can
be highlighted. The ratios which are calculated to evaluate the financial performance are the
liquidity ratios, short term solvency ratios, asset utilization ratio, profitability ratios and the
market value ratios. The short term ratios are calculated so as to evaluate the short term liquidity
of the organization. These financial ratios can be used by the investors to take investment related
decisions. These ratios will examine the strength and the weaknesses of Beach Energy Limited
and Senex Energy Limited. The various ratios calculated will provide the understanding about
the liquidity, efficiency and the profit condition of the organization so that financial position can
be examined in the competitive market.
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Company’s Overview
The Senex Energy Limited is the oil and gas production as well as the exploration independent
company in Australia. The Senex aims at providing valuable Australian east coast gas and oil
resources. Its mission is to deliver the outcomes which are profitable by attracting and retaining
the people who are talented in particular sector. The company announced the revenue of $70.4
million in 2012. According to the survey of 2013 there were 150 numbers of employees working
in the organization for providing valuable services to the customers. The company was founded
on 15 August 1984 and has the headquarters in Queensland Australia.
Beach Energy Limited was founded in 1961 and got listed in ASX in 1962. It is also the oil and
gas production and exploration company which focuses on delivering sustainable growth in
terms of shareholders value. The strategy of the organization is to build the contemporary gas
business in basins of east coast and to maintain the financial strength. The company also
provides various values such as of safety, creativity and respect so that the employees can get
motivated and the helps in increasing the values of the organization. It basically focuses on the
copper basins which are resource rich with the gross acres of about 69,000 km square.
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