Oil giant posts 148 per cent increase in profits, totalling nearly £6.4bn
28 October 2008

Oil giant BP has announced another record rise in profits. The company made nearly $10bn (£6.4bn) between July and September, an increase of 148 per cent compared to the same period last year.

BP’s chief executive, Tony Hayward, acknowledged that high oil prices had helped to boost results, but also claimed that more efficient refining and cost-cutting were partially responsible.

The company’s downstream operations, including its petrol sales business, reported a 70 per cent increase in profits.

BP and other major oil companies have faced heavy criticism from UK consumers for not passing on quickly enough the falls in the price of crude oil.

The price of petrol and diesel has been falling on British forecourts over the last two weeks, but industry analysts have warned that the price is likely to rise again in the run-up to Christmas.

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28 October 2008

Ah, so it's the cost-cutting that's helped boost the takings to £6,500,000,000 for three months trading... must be the decision to switch to two-ply bogroll in the employee toilet!


What's that expression again? Oh, yes - blatant profiteering.

28 October 2008

This is just completely and utterly shocking. If they're all up to their eyeballs in profit, why do us motorists have to suffer? If they don't drop prices, I simply won't go to BP for my fuel. It's just appalling, and with all these manufacturers announcing production cuts and all sorts. Half the reason for that is people laying off buying cars and putting fuel in - because the credit crunch and fuel prices are virtually the only thing on the news these days - and a lot of it is worrying people unnecessarily. They never highlight anything positive. It just seems to encourage people to stop buying everything! Anyway, that's my thoughts. We need lower fuel prices though. Especially diesel - drop the current 10-15p difference between petrol and diesel!!

"The creative adult is the child who survived."

28 October 2008

[quote ESP deactivated]What's that expression again? Oh, yes - blatant profiteering[/quote]

I think you've just confirmed what 'BP' stands for.

28 October 2008

yep typical. but was anyone really thinking any different? with the ridiculous prices on the forcourts? nope. not me. i'm even surprised one bit. if you ask them they'll tell you they're in business to make profit and thats exactly what they've done by kicking us where it hurts most. am i also the only one think the 15-18p difference between petrol and diesel is going to negate the all the benefits that we're supposed to be getting from diesel? i've got a diesel company car and it does very good miles to the gallon but if i was buying with my own money, i certainly won't be going for anything remotely diesel.

28 October 2008

Let's make things a little clearer, the cost of petrol at the pump is high because of the government. Around 70% is tax, all except for the VAT is taken at the refinery. Before the extra tax (not VAT) is added, fuel is some of the cheapest in Europe. Once the extra tax is added, it becomes some of the most expensive in the world. If you have a problem with fuel prices, then attack the government and not the oil companies.

Oil companies have made big money because of speculators, but now the price of oil has collapsed, those profits will also start to collapse. Threats of a windfall tax will make the oil companies move offshore costing the treasury billions of pounds in lost taxes each year, not a good move.

28 October 2008

[quote Brooklands]If you have a problem with fuel prices, then attack the government and not the oil companies.[/quote] .........and in the background you can see Gordon Brown wringing his hands and telling us that his Government "is doing its best to make things better" but that there is nothing he "can directly do to lower fuel prices" whilst his colleagues keep telling us he was the greatest Chancellor this nation ever had. [quote Brooklands]but now the price of oil has collapsed, those profits will also start to collapse. Threats of a windfall tax will make the oil companies move offshore costing the treasury billions of pounds in lost taxes each year[/quote] BP are in business to make profit, if we really want lower prices we have to persuade OPEC to increas production and take less money themselves - not likely when they have the western world at their mercy.

Enjoying a Fabia VRs - affordable performance

28 October 2008

[quote ordinary bloke]

...BP are in business to make profit, if we really want lower prices we have to persuade OPEC to increas production and take less money themselves - not likely when they have the western world at their mercy.[/quote]

Well, one could that OPEC are also in the business to make profit, so why should they be willing to reduce their income any more than BP?

Also, I don't quite buy this "OPEC have the Western world at their mercy" idea. Sometimes things are titled in OPEC's favour, other times in West's. This is a bi-lateral relationship. Just as West needs their oil, the OPEC countries need West's money. They also need West's (as well as far East's) products and technology. Take the obvious example: Dubai. Who do you suppose has been raking it in up in building up that place? The UK and US companies in the main, as well as a few other European ones, that's who.

28 October 2008

I'm just thinking through the whole price, supply & demand thing... BP have a limited capacity to refine oil into various products. They have costs to find/get or buy their raw materials. That cost rises, so they have to increase their selling price, otherwise there will come a point they don't make money. However, raise it too much and less will be brought, leaving an excess. Conversely, don't raise the price enough and everyone will be beating a path to buy it. There's no point selling the months supply in a day, but they want to sell that months supply in the month. Thus, BP must raise their price in line with everyone else, or they'll have a problem.

I believe that diesel now costs significantly more per litre than petrol is in some regard due to increased demand from motorists. As they have become more popular (lower CO2 tax, better economy, able performance), more buyers have brought diesel engined transport rather than petrol. So the demand for petrol is lower, but for diesel it's higher. With my 15k annual milage last year I decided to get a diesel engined car, when prices were the same. Even now it's still cheaper per mile with my diesel car than it ever was with the similar size/performance petrol car I had before - becasue I go 40% further per volume of fuel. It's not the case for everyone who's joined on the diesel bandwagon, so hopefully in the not too distant future there will be a return to petrol for some people.

28 October 2008

Some of this rubbish just shows how ignorant people can be of the world around them.

Look at the results more closely and you will see that almost 90% of the profits came from the Exploration Division whilst 10% came from Refining & Marketing which is the bit where the fuel stations (and refineries) sit. Conclusion the profits have been driven by the price of a barrel of oil i.e. a commodity product subject to world demand which drives the price - look what has happened to the price of crude since the global recession kicked in. Oil is traded on global markets and the price cannot be controlled by one company or even the oil majors together.

Having heard another moronic trade union leader on TV going on about the need to enforce windfall taxes etc. consider this. How much tax do you think BP has paid on this profit? If the profits and hence taxes decline where do you think the government will come for the tax shortfall - yes, Joe Public, one way or another. Also consider that bp shares make up to 10% of the nations pension funds and so their well being has a direct impact on anybody with, or working towards, a pension (and the taxes towards state pensions)

Yes, by all means boycott BP if it makes you feel good and buy your fuel from Esso (USA) , Shell ( 50% Dutch) or Texaco (USA) and contribute to their profits and hence US pensions etc. The phrase 'cutting one's nose off to spite one's face' comes to mind

So come on, wake up, smell the roses and just think a little more about what this means to the UK

of course, it's probably those people who are complaining loudest who were stupid enough to vote the current tax-grabbing clowns that inhabit Parliament into office.

Rant over - time for a blood pressure pill :-))))

28 October 2008

I agree, i had 05 plate MINI Cooper and due to a slightly heavy right foot struggled to get more than 30MPG, on a long run even driving carefully i wouldn't get much past 35MPG.

now with the Diesel i am getting 42 over all (worst case, normally average 44-45) and 50-53 on a long run, thus the diesel is still cheaper to run than the MINI.

Also from a personal point of view i couldnt afford the insurance on a 125i and certainly not a 135i (though i would have loved one!) so the 123d made sense, as the tax and insurance is considerably less. but performance (relitive to the 125 is pretty much the same)

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