No of course they're not profiteering
28 October 2008, 01:46 PM
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Why don't all the people who moan about BP's profits send off a job application to them and share their success?
Will you have a major outbreak of Schadenfreude when their Q4 profits are halved from the recent oil price collapse? What would you do if the price of your product surged? Sell it for more money or say "no no i couldn't possibly"? Well then, BP are doing what anybody else in their position would do!
Will you have a major outbreak of Schadenfreude when their Q4 profits are halved from the recent oil price collapse? What would you do if the price of your product surged? Sell it for more money or say "no no i couldn't possibly"? Well then, BP are doing what anybody else in their position would do!
28 October 2008, 01:48 PM
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Wouldn't be surprised if a barrel of oil is under $30 by xmas. I read somewhere that the hikes in June/July were just to 'test' the market so they could see where the breaking point was. 
Little did they know that it would actually help 'break' the entire world economy!
Little did they know that it would actually help 'break' the entire world economy!
28 October 2008, 01:50 PM
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Why don't all the people who moan about BP's profits send off a job application to them and share their success?
Will you have a major outbreak of Schadenfreude when their Q4 profits are halved from the recent oil price collapse? What would you do if the price of your product surged? Sell it for more money or say "no no i couldn't possibly"? Well then, BP are doing what anybody else in their position would do!
Will you have a major outbreak of Schadenfreude when their Q4 profits are halved from the recent oil price collapse? What would you do if the price of your product surged? Sell it for more money or say "no no i couldn't possibly"? Well then, BP are doing what anybody else in their position would do!
I know business is business but that amount of profit is just crazy.I'd like to see their nett % profit compared to turnover. I bet you it is a wee bit more than 15%.
28 October 2008, 01:53 PM
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Why don't all the people who moan about BP's profits send off a job application to them and share their success?
Will you have a major outbreak of Schadenfreude when their Q4 profits are halved from the recent oil price collapse? What would you do if the price of your product surged? Sell it for more money or say "no no i couldn't possibly"? Well then, BP are doing what anybody else in their position would do!
Will you have a major outbreak of Schadenfreude when their Q4 profits are halved from the recent oil price collapse? What would you do if the price of your product surged? Sell it for more money or say "no no i couldn't possibly"? Well then, BP are doing what anybody else in their position would do!
Of course I understand that they will make more money when the price is higher, my problem is with the rate they put the pump prices up to the rate they drop them when the price comes down and that currently the pump price does not reflect the oil price.
28 October 2008, 01:54 PM
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Funy isn't it, if I had posted about the government making more money through the VAT you'd have all been falling over yourselves to condemn them 
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28 October 2008, 01:59 PM
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fi fan, nope, i wouldn't say they are, but again, i'd challenge you, if you sell a product and your costs reduce, would you genuinely reduce your product price by the same amount at the same time? I defy anyone on here who is in business to hand-on-heart say that they would. It's human nature i'm afraid.
28 October 2008, 02:09 PM
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fi fan, nope, i wouldn't say they are, but again, i'd challenge you, if you sell a product and your costs reduce, would you genuinely reduce your product price by the same amount at the same time? I defy anyone on here who is in business to hand-on-heart say that they would. It's human nature i'm afraid.
Doesn't it entirely depend on the type of product you are selling? I.E. If you have any competition.
Obviously, the Oil cartels don't have to worry about that do they!
28 October 2008, 02:11 PM
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Yes of course, Chris, it depends a lot on the product, and the world oil cartel doesn't help. But that's the way it's evolved, like it or loathe it, and one of the prices we pay for choosing to live in a capitalist society. Them's the rules, as they say.
28 October 2008, 07:20 PM
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Telboy.
I think that the BP etc megaprofits annoy most people (except you of course - do you work for BP?) as it's a product that the world can't do without; making $Billions on the back of same seems a tad OTT. Charge a fair price & they may see their popularity increase however I'm not holding my breath in anticipation. When oil was last $70-80 a barrel we were paying miles less than £1 a litre
Quick to increase prices then slow to decrease + prices never seem to return to where they were back then either
TX.
I think that the BP etc megaprofits annoy most people (except you of course - do you work for BP?) as it's a product that the world can't do without; making $Billions on the back of same seems a tad OTT. Charge a fair price & they may see their popularity increase however I'm not holding my breath in anticipation. When oil was last $70-80 a barrel we were paying miles less than £1 a litre
Quick to increase prices then slow to decrease + prices never seem to return to where they were back then either
TX.
28 October 2008, 07:24 PM
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Good grief!
$10Bn Profit in a Quarter will certainly help keep them warm this winter.
TX.
BP chief executive Tony Hayward said that oil prices could decline further as the world enters a recession.
"I believe that BP is well-positioned to cope with such volatility," he said.
"I believe that BP is well-positioned to cope with such volatility," he said.
TX.
Last edited by Terminator X; 28 October 2008 at 07:27 PM.
28 October 2008, 07:30 PM
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28 October 2008, 09:48 PM
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FFS - what a load of nonsense being posted on here.
a) it's a massive global business - of course it's profits are big, it's enormous and therefore it's return on capital has to be commensurate with that
b) making record profits when the oil price is high is precisely why these businesses exist, and can take the risks and costs involved in finding the stuff in the first place
c) oil exploration is a very risky business - yields are hard to predict and there is high political risk
d) BP is spending more than £13bn this year in exploration, refining and shipping - suddenly the profit doesn't look so big, particularly as it's not sustainable (the oil price is dropping again). This business needs to make returns across the cycle to even survive. Shame our wondrous government didn't apply the reverse logic to help us all survive the credit crunch!
e) only about 4% of BP's sales are in the UK, with these contributing less than 2% of profits. i.e. petrol sales here are tiny for this business - terrific that a British company can reside and pay taxes here and make massive profits. what a great success story that most of our pension funds are almost certainly invested in, and getting dividends from.
A large profit number grabs headlines, but criticising it or (god forbid) suggest a windfall tax would ultimately send this business overseas, costing tax and jobs here in the UK.
Gordo
a) it's a massive global business - of course it's profits are big, it's enormous and therefore it's return on capital has to be commensurate with that
b) making record profits when the oil price is high is precisely why these businesses exist, and can take the risks and costs involved in finding the stuff in the first place
c) oil exploration is a very risky business - yields are hard to predict and there is high political risk
d) BP is spending more than £13bn this year in exploration, refining and shipping - suddenly the profit doesn't look so big, particularly as it's not sustainable (the oil price is dropping again). This business needs to make returns across the cycle to even survive. Shame our wondrous government didn't apply the reverse logic to help us all survive the credit crunch!
e) only about 4% of BP's sales are in the UK, with these contributing less than 2% of profits. i.e. petrol sales here are tiny for this business - terrific that a British company can reside and pay taxes here and make massive profits. what a great success story that most of our pension funds are almost certainly invested in, and getting dividends from.
A large profit number grabs headlines, but criticising it or (god forbid) suggest a windfall tax would ultimately send this business overseas, costing tax and jobs here in the UK.
Gordo
28 October 2008, 11:47 PM
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I drove past a BP near me yesterday that was charging 110.9 for normal unleaded.
Less than half a mile down the road the Shell place was 96.9 for the same stuff.
Greedy buggers.
The BP forecourt was empty, thankfully and I hope that place goes under. The other BP in town was 97.9.
Less than half a mile down the road the Shell place was 96.9 for the same stuff.
Greedy buggers.
The BP forecourt was empty, thankfully and I hope that place goes under. The other BP in town was 97.9.
28 October 2008, 11:53 PM
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Gordo.
BP make almost 21% gross profit. Despite what you say that's a lot for any company let alone one that turns over Billions a year ...
BP Company Financial Information
TX.
BP make almost 21% gross profit. Despite what you say that's a lot for any company let alone one that turns over Billions a year ...
BP Company Financial Information
TX.
29 October 2008, 06:28 PM
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Gordo.
BP make almost 21% gross profit. Despite what you say that's a lot for any company let alone one that turns over Billions a year ...
BP Company Financial Information
TX.
BP make almost 21% gross profit. Despite what you say that's a lot for any company let alone one that turns over Billions a year ...
BP Company Financial Information
TX.
Gross profit for this business is not that relevant as you don't know what their fixed costs are below that line and depreciation in particular will be huge for a business that has to constantly be investing in massive long term capex projects.
Gordo
29 October 2008, 06:45 PM
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29 October 2008, 08:11 PM
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fi fan, nope, i wouldn't say they are, but again, i'd challenge you, if you sell a product and your costs reduce, would you genuinely reduce your product price by the same amount at the same time? I defy anyone on here who is in business to hand-on-heart say that they would. It's human nature i'm afraid.
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