Shell Profits...£13.12bn
Discussion
You are correct on both those assumptions. ALL the oil companies are making big money because the price of oil is artificially high, as production is restricted to ensure this. This can't come as any real surprise.
I saw on the TV that this news is already being received with the rather prdictable "I fink it's disgustin!" man in the street comment. My answer: go and buy oil company shares. They are publicly traded and you too can make money out of the oil industry.
hendry said:
I saw on the TV that this news is already being received with the rather prdictable "I fink it's disgustin!" man in the street comment. My answer: go and buy oil company shares. They are publicly traded and you too can make money out of the oil industry.
Exactly. Profit is a good thing. Just remember that HM Govt benefits immensely from this - maybe around 40% so it is protecting you from higher income taxes.
hendry said:
You are correct on both those assumptions. ALL the oil companies are making big money because the price of oil is artificially high, as production is restricted to ensure this. This can't come as any real surprise.
Not true, we are awash with oil at the moment, there is far too much of the stuff on the market. And this over production is going to come back to bite us. The reason the oil price is so high is that someone (quite a few people actually) is betting on the oil futures market to make one hell of a killing. This all started when computers were introduced on to the market along with automatic trading of oil futures, about 2 years ago. The oil price will collapse, but when is anyones guess.
So what about the profit's made, they are a company supposed to make profits. Should we increase the tax on the succesfull now? 
You also have to remember that these profit's are based on approx (going on last years figures) between £140-£150billion turnover, turnover for this year is likely to be bigger.
>> Edited by FourWheelDrift on Thursday 2nd February 10:27
You also have to remember that these profit's are based on approx (going on last years figures) between £140-£150billion turnover, turnover for this year is likely to be bigger.
>> Edited by FourWheelDrift on Thursday 2nd February 10:27
jonnyb said:
Not true, we are awash with oil at the moment, there is far too much of the stuff on the market. And this over production is going to come back to bite us. The reason the oil price is so high is that someone (quite a few people actually) is betting on the oil futures market to make one hell of a killing. This all started when computers were introduced on to the market along with automatic trading of oil futures, about 2 years ago. The oil price will collapse, but when is anyones guess.
Hmm, not sure over-production equals high pricing, but then the oil market doesn't play to normal economic rules does it? After all, nowhere else are there cartels which artificially influence market conditions (legally anyway), and there are not many other industries that have the seat of production constantly on the verge of war. It's a dodgy industry with fortunes to be made for those with kevlar balls.
Either way, I don't despise the oil companies anything for achieving 10% return on investment, nor for having to deal with Arabs and Russians, nor for making hay while the black sun shines...
Good luck to them.
I think it's inspiring to see this kind of profitability but when you consider their expertise, investments, overhead and risk it's well deserved.
If only the UK allowed the endeavours of it's grafting subjects more scope to benefit from the fruits of their undoubtedly well deserved labours, we would all feel far, far richer.
You only have to witness the relatively enormous material benefit of transatlantic colonial existence to confirm the extent of our own exploitation at the hands of an eternally parasitic condition perpetuated by vile, state theft.
Taxation is implicity evil.
I think it's inspiring to see this kind of profitability but when you consider their expertise, investments, overhead and risk it's well deserved.
If only the UK allowed the endeavours of it's grafting subjects more scope to benefit from the fruits of their undoubtedly well deserved labours, we would all feel far, far richer.
You only have to witness the relatively enormous material benefit of transatlantic colonial existence to confirm the extent of our own exploitation at the hands of an eternally parasitic condition perpetuated by vile, state theft.
Taxation is implicity evil.
chassis 33 said:I'd be interested to know how this is made up, am assuming most profit isn't made from UK consumers.
While granted, petrol is only a small part of an oil company's product portfolio, and we're taxed to buggery on fuel....but £13.12 billion!!!
Its good that this country has some companies that can make money overseas, helps make up for all the imported cars and electronics goods! Company profit gets taxed and reduces the burden a bit on the people.
derestrictor said:
Taxation is implicity evil.
got my tax bill on tuesday. felt physicaly sick at the time and have been fuc4ing angry ever since. parasitic scum
oh yeah and these guys make their profits abroad and bring lots back home so good on em.
>> Edited by francisb on Thursday 2nd February 10:45
marki said:
A Friends of the Earth spokeslentle on Sky News
"They should be taxed and that tax put to research alternative fuel"
All the oil co's already spend a lot of money on alternative fuel.
One of my clients is BP & they are investing lots into it too so they are not left behind. These companies are energy producers so it's in their interests to look into alternatives as resources and/or the market changes.
derestrictor said:
Good luck to them.
I think it's inspiring to see this kind of profitability but when you consider their expertise, investments, overhead and risk it's well deserved.
Indeed; whenever oil company profits are announced you get the usual suspects bleating about how they should use them to reduce petrol prices (usually in the tabloids) it is mindless rubbish.
Profits are a return on the capital employed, the rate required depending on the risk. Compare these profits to the level of investment needed and the risk these oil companies are taking and they are not at all remarkable.
RichardD said:
While granted, petrol is only a small part of an oil company's product portfolio, and we're taxed to buggery on fuel....but £13.12 billion!!!
Its good that this country has some companies that can make money overseas, helps make up for all the imported cars and electronics goods! Company profit gets taxed and reduces the burden a bit on the people.
Typically approx 1/3 of that profit will be from trading with the other oil co's.
Jaglover said:
I'd be interested to know how this is made up, am assuming most profit isn't made from UK consumers.
If you break it down between extraction, refining and retailing, profits from the last activity make up a very small proportion of the total.
Yes. I saw some industry figures a while ago and the profit contribution of UK public was very low %
I work at Stanlow for Shell and I was thinking, cheap Optimax, yea right, the prices there are topping the 102p per litre.
I then asked the security guys where the Optimax tanks were and could I fit a tap..? surprisingly enough they never told me
I did ask a top guy there when Vmax or whatever its called is coming out here in the UK and he said its not in the foreseeable future as its expensive to make and the prices over here would be astronomical (or he could just be lying to me which I hope he is).
So that's that then. Until the tax drops don't expect to see the magic 100 RON from Shell here.
Claire
I then asked the security guys where the Optimax tanks were and could I fit a tap..? surprisingly enough they never told me
I did ask a top guy there when Vmax or whatever its called is coming out here in the UK and he said its not in the foreseeable future as its expensive to make and the prices over here would be astronomical (or he could just be lying to me which I hope he is).
So that's that then. Until the tax drops don't expect to see the magic 100 RON from Shell here.
Claire
Gaffer said:
I work at Stanlow for Shell and I was thinking, cheap Optimax, yea right, the prices there are topping the 102p per litre.
I then asked the security guys where the Optimax tanks were and could I fit a tap..? surprisingly enough they never told me
The Stanlow services are some of the most expensive in the world...must be, even the LPG is expensive!!! Always confuses me how the service station closest to the refinery/depot has the most expensive fuel, I mean transport costs must be soooooo low!
Regards
Iain
So an oil company makes £13Bn profit ... yeah great.... and I mean great - we NEED this type of company listed on OUR stock exchange and paying corporation tax to OUR government and helping OUR stockmarket and OUR pension funds.... blah blah - you get the picture....
Its good for our economy and our long-term stability to have this type of company here. As mentioned, but often overlooked, is the fact that petrol retail contributes almost NOTHING to the bottom line of the company. Its other areas and at the moment the price of oil is high - therefore high profits.
However, it wont last forever. What they need to do is re-invest the money into the long-term growth of the company and that may or may not be in alternative fuels or different production facilities. This year they make a profit, next year it might not....
Its good for our economy and our long-term stability to have this type of company here. As mentioned, but often overlooked, is the fact that petrol retail contributes almost NOTHING to the bottom line of the company. Its other areas and at the moment the price of oil is high - therefore high profits.
However, it wont last forever. What they need to do is re-invest the money into the long-term growth of the company and that may or may not be in alternative fuels or different production facilities. This year they make a profit, next year it might not....
Nothing wrong with £13bn profit ..... what matters is the ROCE (return on capital employed ) ( rather than absolute profit )- not excessive for a Co. with the mkt cap. of Shell.
the margins at the pumps are virtually nil after tax is taken off.
If Oil Co.'s were unprofitable there would be massive job losses , drop in share price ( and hence in the value of your pension ), and less money for Gordon Brown ..... so we'd be taxed elsewhere.
profitable companies are good for us !
the margins at the pumps are virtually nil after tax is taken off.
If Oil Co.'s were unprofitable there would be massive job losses , drop in share price ( and hence in the value of your pension ), and less money for Gordon Brown ..... so we'd be taxed elsewhere.
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