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Haselsh1
31-01-2009, 14:19
How many of you have just read the report on the yearly profits of Shell...??? Now a while ago, the cost of fuel oil went through the roof and as usual, we got clobbered at the petrol pumps as if to tell us that we all have to pay for this commodity. We then find out that Shell have made the biggest ever profit by a corporate company. That profit was around 23 billion. Now we're talking profit here not turnover.

Of course I appreciate that every person that is in business is usually in business to make money. I am, and I am. I also know that such businesses have shareholders to accomodate. If the business doesn't perform, the shareholders withdraw their investments. What I find particularly difficult to swallow is being held responsible for the use and therefore rarity of petrol. If this reserve is so rare, how can this company make such a massive clear profit...??? I'll tell you. Exploitation of the likes of you and me.

Filterlab
02-02-2009, 11:34
I think you'll find that most of their profit is not down to petrol sales, and even if it is the price they sell it at and the price we buy it at is very different, but only through taxation. Also is that profit pre- or post tax?

Haselsh1
02-02-2009, 12:34
Of course, profit is made by margins, the higher the margin the higher the profit. HiFi and consumer electronics margins are 2.5 times. So, if you see a fab plasma screen at 1500 pounds, the shop has paid around 750 pounds with VAT which they can claim back of course. That effectively means that you have given the shop owmer a clear 750 pounds of your hard earned cash just because he has the shop and the overheads.

I have no idea whether the Shell profit is pretax or not but I do know that it is the biggest ever profit by a corporate company in history. And, that comes just after all of the petrol price hikes. Draw your own conclusions.

Filterlab
03-02-2009, 13:06
It is rather a lot of money given their main product line, but that's oil for you - if people want it, they'll pay for it. :)

I wish I sold oil.