Bad news.. BP only made 5.6 billion....

[Dupont666]

[cs02rm0]

jshell said:

cs02rm0 said:

bob1179 said:

After all, do you realise how much it costs to explore, extract, refine then deliver your fuel to your local petrol station?

Peanuts relatively, surely? How else could they turn a profit in the billions, again, on a product that we pay 70% tax on?

You do realise that oil production is not solely to produce petrol for motorists?

Crude oil is used to produce:

plastics
fertilisers
pharmaceuticals
Heavy fuel oils
aviation fuels
chemicals
etc
etc
etfeckingc........

The profits do not come from bloody petrol!

Quite. Plenty more products out of largely the same overheads.

[Blue Meanie]

The amount of money that oil companies put up, and the assets they have out in the fields at risk is phenomenal. I wonder what sort of margin this profit actually gives them? I would hazard a guess at "not as much as you think".

[jshell]

cs02rm0 said:

jshell said:

cs02rm0 said:

bob1179 said:

After all, do you realise how much it costs to explore, extract, refine then deliver your fuel to your local petrol station?

Peanuts relatively, surely? How else could they turn a profit in the billions, again, on a product that we pay 70% tax on?

You do realise that oil production is not solely to produce petrol for motorists?

Crude oil is used to produce:

plastics
fertilisers
pharmaceuticals
Heavy fuel oils
aviation fuels
chemicals
etc
etc
etfeckingc........

The profits do not come from bloody petrol!

Quite. Plenty more products out of largely the same overheads.

Oh, and how could I forget: Gas! lots and lots of gas!

[davido140]

cs02rm0 said:

jshell said:

cs02rm0 said:

bob1179 said:

After all, do you realise how much it costs to explore, extract, refine then deliver your fuel to your local petrol station?

Peanuts relatively, surely? How else could they turn a profit in the billions, again, on a product that we pay 70% tax on?

You do realise that oil production is not solely to produce petrol for motorists?

Crude oil is used to produce:

plastics
fertilisers
pharmaceuticals
Heavy fuel oils
aviation fuels
chemicals
etc
etc
etfeckingc........

The profits do not come from bloody petrol!

Quite. Plenty more products out of largely the same overheads.

Vaseline.... they make all their money with Vaseline.

BP are big sponsors of Gay rights for this reason.

[jshell]

davido140 said:

cs02rm0 said:

jshell said:

cs02rm0 said:

bob1179 said:

After all, do you realise how much it costs to explore, extract, refine then deliver your fuel to your local petrol station?

Peanuts relatively, surely? How else could they turn a profit in the billions, again, on a product that we pay 70% tax on?

You do realise that oil production is not solely to produce petrol for motorists?

Crude oil is used to produce:

plastics
fertilisers
pharmaceuticals
Heavy fuel oils
aviation fuels
chemicals
etc
etc
etfeckingc........

The profits do not come from bloody petrol!

Quite. Plenty more products out of largely the same overheads.

Vaseline.... they make all their money with Vaseline.

BP are big sponsors of Gay rights for this reason.

Management policy, wasn't it?

[cs02rm0]

Can't believe you've forgotten renewables btw.

[Fittster]

Not done much good for the share price this morning.

[jshell]

Fittster said:

Not done much good for the share price this morning.

Never does. 26 years in the industry and I've completely givien up trying to predict OC share movements!

[Chris_w666]

thatone1967 said:

This really does p1ss me off....
Combination of the Oil Co's and Winky, we are being royal scr3w3d!

Have you calmed down yet?

[Bing o]

Chris_w666 said:

thatone1967 said:

This really does p1ss me off....
Combination of the Oil Co's and Winky, we are being royal scr3w3d!

Have you calmed down yet?

He may have calmed down, but I fear that he and several other posters on this thread will forever be stupid.

[thatone1967]

I am calm now.. It was early... and I was stressed.. I really do understand that it has more to do with tax than BP's profits... sorry...

I will get my coat....

I would love there to be some sort of real protest about fuel prices, but I do not think that there would be sufficient interest... (although I would gladly go!)

[thatone1967]

Bing o said:

He may have calmed down, but I fear that he and several other posters on this thread will forever be stupid.

Is there a need for that?

[limpsfield]

thatone1967 said:

Bing o said:

He may have calmed down, but I fear that he and several other posters on this thread will forever be stupid.

Is there a need for that?

I think there is. The thicko quotient on this website is going through the bloody roof.

[abz]

cs02rm0 said:

bob1179 said:

After all, do you realise how much it costs to explore, extract, refine then deliver your fuel to your local petrol station?

Peanuts relatively, surely? How else could they turn a profit in the billions, again, on a product that we pay 70% tax on?

that says it all really. before spouting off about this, maybe you should do a bit of research then come back with an informed view...

[Chris_w666]

Would a company like BP have several trading arms, one that extracts and ships the crude, one that does the distillation, and then various ones selling the fractions individually. Or is it one huge operation that does it all?

If they are taking each layer of crude and then refining it then that is a huge investment of money and research time, add the cost of running tankers, finding new oil, drilling, getting pipelines laid and secure, the profit (which I assume is quoted pre tax) Isn't as large as it seems, in financial terms it is a shed load of money but profit surely only is a true reflection of a companies sucess when viewed as a %age of annual turnover or a return on the running costs of the business.

[TrevorH]

From BP's press release.

Revenue 74.417 billion dollars
Gross profit 9.606
Finance costs .228
Tax 3.190
Profit 6.188

i.e. profit = 8.3% of turnover. It's not exactly excessive, is it?

[cs02rm0]

abz said:

cs02rm0 said:

bob1179 said:

After all, do you realise how much it costs to explore, extract, refine then deliver your fuel to your local petrol station?

Peanuts relatively, surely? How else could they turn a profit in the billions, again, on a product that we pay 70% tax on?

that says it all really. before spouting off about this, maybe you should do a bit of research then come back with an informed view...

I didn't express a view. I asked two questions. Before spouting off ...

[Chris_w666]

TrevorH said:

i.e. profit = 8.3% of turnover. It's not exactly excessive, is it?

I do wonder why the BBC couldn't see fit to print that figure. Impartial reporting my arse.

[off_again]

Given BP can get the stuff out of the ground, store it, ship it half way around the world, process it, deliver the fuel to the petrol stations AND STILL MAKE money is simply quite amazing! I think that they can make any money at all given the massive taxation they have to pay is quite astonishing. So hats off to BP for actually doing well.

Of course, the more profit they make, the more corporation tax they pay - so yet more money to the government coffers. But the important thing for me is that it gives BP flexibility to continue to invest in the way forward for them. Some of it is new exploration and some of it is new technologies and techniques. Either way, its all good and helps us all to make the best of what we currently have.

What the future holds is unclear, but its obvious to see that Oil companies will be around for a while longer and they are desperate to re-invent themselves as 'energy' companies and position themselves at the centre of energy for the future (even if they only spend a tiny fraction of what they make on research in these areas - its about profit to buy up the risky investments later that is the important bit).