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Old 17 January 2014, 01:40 PM
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Fantom
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Default Profit warning!

http://www.bbc.co.uk/news/business-25773409

"Our focus will be on improving Shell's financial results, achieving better capital efficiency and on continuing to strengthen our operational performance and project delivery."

Jesus........how can $16.8bn not be enough!
Old 17 January 2014, 02:39 PM
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warrenm2
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Originally Posted by Fantom
Jesus........how can $16.8bn not be enough!
*SIGH* Because if you have invested $900bn in the business and are only making $16.8 profit, its a rubbish rate of return and you would invest elsewhere. Doesn't anyone understand the first thing about economics anymore?
Old 17 January 2014, 04:11 PM
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David Lock
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But warning issued before I filled up last night..........

dl
Old 17 January 2014, 04:17 PM
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neil-h
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Originally Posted by warrenm2
*SIGH* Because if you have invested $900bn in the business and are only making $16.8 profit, its a rubbish rate of return and you would invest elsewhere. Doesn't anyone understand the first thing about economics anymore?
Nope. I have to agree that there does seem to be a universal feeling that all business should operate at it's break even point and that making a profit is evil.
Old 17 January 2014, 04:26 PM
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Chip
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Originally Posted by warrenm2
*SIGH* Because if you have invested $900bn in the business and are only making $16.8 profit, its a rubbish rate of return and you would invest elsewhere. Doesn't anyone understand the first thing about economics anymore?
They obviously don't. Hardly a big profit percentage wise is it.
Old 17 January 2014, 05:32 PM
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They may have invested a lot of money but they've been making large profits for a number of years right? Something like $29Bn last year
Old 17 January 2014, 06:20 PM
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warrenm2
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Originally Posted by Fantom
They may have invested a lot of money but they've been making large profits for a number of years right? Something like $29Bn last year
So what? You still don't get it do you? Investment money makes a return. You can either stick it in a bank for a low safe return, or invest in a business for a riskier but hopefully better return. You invest it where you get the best returns for the risk and the time frame you are interested in. Of course Shell made a profit, a) if they didn't they would go out of business b) if they produce poor returns, investment funds are sucked out and go elsewhere where they make more money.

If I understand correctly you are suggesting that they make too much profit? According to whom and by what measure? Are you suggesting that profit should be capped?

Last edited by warrenm2; 17 January 2014 at 06:21 PM. Reason: typo
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