How does a company make such a huge profit on something that we are told we don't have?
2006-06-22 14:18:42 · 9 answers · asked by -Tequila17 6 in Politics & Government ➔ Politics
Thank you jm, I agree, 7.5 is not out of line but can you break down, by product, the profit. I don't begrudge anyone the right to make a profit, my problem is making such a huge profit on something we currently need. But I also understand that BP, British Petroleum, has other sources of revenue, such as the deli. By the way, one of my children earns their living with BP.
2006-06-22 14:32:43 · update #1
What you don't state is that they had a total revenue of 265.44B, meaning their net profit margin was about 7.5%
I don't think that's out of line.
Income Statement
Revenue (ttm):265.44B
Revenue Per Share (ttm):76.22
Qtrly Revenue Growth (yoy):-14.90%
Gross Profit (ttm):35.80B
EBITDA (ttm):42.37B
Net Income Avl to Common (ttm):19.99B
Diluted EPS (ttm):5.39
Qtrly Earnings Growth (yoy):-8.20%
2006-06-22 14:24:19 · answer #1 · answered by obviously_you'renotagolfer 5 · 0⤊ 0⤋
Supply and demand. as something gets more scarce the price of it goes up. That is a little simplistic for oil since there is a group in the middle east called OPEC that regulates how much oil it will sell and that way they can regulate the prices. This could come back to bite them too though, if they hold back too much oil for too long we will get fed up with expensive gas and look for other methods, sort of like what people are doing now with riding motorcycles more and driving hybrids to save gas. I think that there is more of a shortage in oil than anyone says and in just a few years we will have to find an entirely different fuel (ethanol, Hydrogen, etc.) when that happens the big oil companies will either change also or go out of business, don't plan on them making 19Billion $ then.
PS: jm what world do you live in that a 7.5% profit margin is in line with expectations?? All I know is hospitals and even the best hospitals barely make 5% margin and that is really the best, so 7.5% is still really high.
2006-06-22 21:27:02 · answer #2 · answered by curious luther 2 · 0⤊ 0⤋
Crude oil is probably not the only asset BP has control over which would add to their bottom line. Also, as you may have noticed, the price of crude oil is rising by the barrell every day. It's not like we don't have oil, whether or not they can legal drill for it is another story (such as the debate over Alaskan drilling rights), it's all about supply and demand. We demand it so they supply it, making a nice little profit on the way.
2006-06-22 21:29:33 · answer #3 · answered by chriswtj 2 · 0⤊ 0⤋
I'm not surprised. The prices these days are way higher than 2 or 3 summers ago. Those huge profit margins in return drive up their net profits globally. Let's hope inflation is not going to happen too fast and too sudden which may affect the our costs of living.
2006-06-22 21:27:28 · answer #4 · answered by dlee1a 2 · 0⤊ 0⤋
Prbably GW's fault, somehow. BP stands for "British" Petroleum , I believe?
Refiners buy crude from all over the world. Petrol companies buy the finished product. The British , who don't have oil, sell gasoline at BP stations all over the US.
2006-06-22 21:25:50 · answer #5 · answered by Anonymous · 0⤊ 0⤋
My dear, Exxon Mobil made 36 Billion so they'er all making it!!!!
2006-06-22 21:38:06 · answer #6 · answered by veteranpainter 4 · 0⤊ 0⤋
Add them all together and its hundreds of Billions. Its SUPPLY AND DEMAND.... b u l l s h i t . THEY ARE CROOKS ....I could stop it and you could too but the American motorist won't help. So good enough.
2006-06-22 21:24:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋
They charge an arm and a leg and everyone still pays for it! That's how!
2006-06-22 21:22:49 · answer #8 · answered by tom8o 3 · 0⤊ 0⤋
Huh? We are told we don't have BP oil/gas? Sorry, but thanks for the points.
2006-06-22 21:23:18 · answer #9 · answered by johngjordan 3 · 0⤊ 0⤋