Footnote on Ch 5 news (no other explanation) said that the rise in oil costs had pushed Shell's profits up to £9 million (or was it £9 billion).
Please explain.
Just wish it had said "Rising cost of living improves PhilW's bank balance"
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Yes Phil. 9 Billion. 1 million an hour apparently. I wonder possibly if most of the petrol cost was tax.
.....noooooooo - silly Adam.
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Adam
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Change "was" to "is" and also, apparently, the most profitable company in the UK. According to BBC GMR this morning anyway.
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Adam
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Shell merely collects the duty and VAT and then passes it onto Gordon. The £9B is what's left as profit after sending him their cheque.
Kevin...
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And just think of their corporation tax bill on those profits!! Also, this figure will probably be beaten by BP next week.
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Yeah but, - if their costs increase how does their profit increase? Unless of course they put up prices by more than costs - surely they wouldn't do that to us would they? Surely the government wouldn't allow them to exploit us like that - after all, what does the gov gain? Oh yeah, VAT, excise duty etc, etc. Oh, and increased price means we all use less so that cures global warming. I begin to see.
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Their costs only increase in their downstream divisions. So the Upstream lot takes the oil from the ground, and sells it to their own, and other companies refineries, thus making vast profits. The % they use in their own refineries does increase their costs, but is more than offset by the amount of crude they sell onto the market.
(There are a number of refiners who dont produce crude, for example Petroplus)
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Good luck to Shell, from one who remembers the days when it was the losses made by British companies which hit the headlines. And remember, if Shell started giving petrol away for free, it would still cost at least 60p a gallon. Calls from the left about "obscene profits" are a nice smokescreen over the true cost of fuel.
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Amazing figures..I heard on the radio the other day that Toyota was the second largest company in the world, and think they said the biggest was Walmart.
Can they be larger in turnover than Shell?.
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Well ExxonMobil certainly is, they are the largest oil company, I think I saw somewhere their profits were $25 Bn or about £13bn
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Or even 60p a litre. Long day.
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And despite record profits of £1m per hour, their shares still went down in value today.
Please explain.
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The extra profit due to high oil prices can be calculated by analysts, and will be factored into the share price long before year end profits are anounced.
If the anouncement is lower than the analysts guesses then the share price will fall.
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I read often, only post occasionally
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And despite record profits of £1m per hour, their shares still went down in value today. Please explain.
in simple terms it goes like this:
1. the profits were not as big as the city analysts had anticipated.
2. shell has once again declared that its estimated reserves are lower than the oft-reduced figures published last year. which means that there will be less "money which grows in oil-wells".
3. or maybe they think motorists will boycot shell, or maybe fewer people will buy optimax at the premium prices in future ?
as for the profits, it is good news for everyone.
1. if you have a company pension.
2. if you are a taxpayer or have a state pension - the extra amount contributed by shell will mean gordy brown will need to dream up fewer new ingeneous tax raising schemes.
3. all money goes round anyhow. even if you buy gold bullion or stash it away in a swiss bank account or buy 10 ferrari cars. it all still gets back in to circulation. the only new wealth created is that from newly mined oil.
4. shell needs to spend even more to seek replacements for its dwindling oil reserves.
happy motoring. enjoy. drive shell.
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