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-   -   Profit warning! (https://www.scoobynet.com/non-scooby-related-4/995054-profit-warning.html)

Fantom 17 January 2014 01:40 PM

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!

warrenm2 17 January 2014 02:39 PM


Originally Posted by Fantom (Post 11326625)
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?

David Lock 17 January 2014 04:11 PM

But warning issued before I filled up last night..........

:) dl

neil-h 17 January 2014 04:17 PM


Originally Posted by warrenm2 (Post 11326669)
*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.

Chip 17 January 2014 04:26 PM


Originally Posted by warrenm2 (Post 11326669)
*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.

Fantom 17 January 2014 05:32 PM

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

warrenm2 17 January 2014 06:20 PM


Originally Posted by Fantom (Post 11326777)
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?


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