Puzzled by Profits

jj_43

The financial industry was making huge profits before the financial crash. Simply events are out of control. 

Section62

jj_43 said:

The financial industry was making huge profits before the financial crash.

The events that led up to the 2008 crash are nothing like the current situation with energy

jj_43 said:

Simply events are out of control. 

Scaremongering.

sienew

jj_43 said:

And your solutions are?

We are only 40% self sufficient in our energy. We need to increase output in the North Sea, or Shale if your a fan. We need to reduce demand. Once we become self sufficient, decouple from international markets, turn off the interconnections, direct any profits into a wealth fund.

 

"we" don't produce any of our energy, private companies do. We don't own them or have any control over them.

jj_43

sienew said:

jj_43 said:

And your solutions are?

We are only 40% self sufficient in our energy. We need to increase output in the North Sea, or Shale if your a fan. We need to reduce demand. Once we become self sufficient, decouple from international markets, turn off the interconnections, direct any profits into a wealth fund.

 

"we" don't produce any of our energy, private companies do. We don't own them or have any control over them.

"we" meaning the UK. Self sufficiency and decoupling from international markets will reduce energy prices. However to control that you probably do need nationalisation.

Xbigman

jj_43 said:

Xbigman said:

British Gas homecare made most of BG's profits. BG's retail energy division appears to have made a loss. 

And Shells average over charge of customers that needed correcting is about £10.


Darren 

Not correct. BG homecare profits fell 88% from £60m to £7, retail energy profits fell to £98m from £172m.
source: Interim results for the period ended 30 June 2022

Homecare went through a major restructuring and wrote off a lot of costs. They are more profitable than they look. 

BP claims to be profitable but wrote off 25bn due to leaving Russia and thus are loss making.

The difference? BG wanted to appear less profitable than they were, BP wanted to appear more profitable than they were.
All perfectly legal as long as its reported in the applicable format.


Darren

jj_43

What BG/BP are doing seem to be the same to me. BP invested significant sums in a high risk region and ultimately that strategy failed, they should have invested in the UK. Investment yields in Russia are high for a reason, as they reflect the political risk.

Homecare incurred significant direct costs due to changes in their operating model, such as greater reliance on gas contractors than direct employees, poor service levels, due to a failure in its management reorganising the business. 

sienew

jj_43 said:

sienew said:

jj_43 said:

And your solutions are?

We are only 40% self sufficient in our energy. We need to increase output in the North Sea, or Shale if your a fan. We need to reduce demand. Once we become self sufficient, decouple from international markets, turn off the interconnections, direct any profits into a wealth fund.

 

"we" don't produce any of our energy, private companies do. We don't own them or have any control over them.

"we" meaning the UK. Self sufficiency and decoupling from international markets will reduce energy prices. However to control that you probably do need nationalisation.

"the UK" don't produce any energy. Companies do. The UK doesn't own any energy. It's produced by private companies on private land. Unless you are suggesting we ban exports and make laws to control the price which would completely crash investment and potentially even stop production altogether.

macman

[Deleted User] said:

jj_43 said:

Xbigman said:

British Gas homecare made most of BG's profits. BG's retail energy division appears to have made a loss. 

And Shells average over charge of customers that needed correcting is about £10.


Darren 

Not correct. BG homecare profits fell 88% from £60m to £7, retail energy profits fell to £98m from £172m.
source: Interim results for the period ended 30 June 2022

£55 million in domestic retail profit - split that between the 7.26 million retail customers and you get how much per customer?  About £7.50 each.  Rolling in cash.

Yes, it's obscene, isn't it? Windfall tax them now!

macman

I suspect that any energy company stooges on here are vastly outnumbered by the conspiracy theorists...
If this whole situation is a fiendish plot by producers, distributors and suppliers acting in tandem to defraud the British public, then can you explain why it's only happened this year? Energy privatisation happened back in 1990: why has it taken nearly a third of a century for them to start the lucrative extortion process?
And how exactly do you know that 'some here are shareholders', unless they say they are? 

littleteapot

I think it was dead from the start. I doubt there are many, if any, plants on this or related forums. It just shows how many people have fallen for the 'poor suppliers at mercy of the wholesale prices set by their greedy parent exploration/production companies' spiel.

People forget that the decoupling of the retail/supply entities from exploration/production entities was deliberatley done for the very reason of protecting the production entities from government regulation and/or taxation in many jurisdictions.