The energy crisis

[jfman]

consumers get little or no relief from these very low prices.

I wonder if that trend holds for shareholder dividends.

[nomadking]

Originally Posted by jfman

I wonder if that trend holds for shareholder dividends.

Depends on which businesses you're talking about.
The buyers of the gas, who then sell it onto consumers, won't make a profit. As they are having to buy it at the higher price. The clue is in the thread title, "Energy companies collapse", ie they go bankrupt.

[Jaymoss]

Esso and Shell are singing and dancing all the way to the bank but are also hoping the Tories block the Windfall Tax vote today

[jfman]

Originally Posted by nomadking

The buyers of the gas, who then sell it onto consumers, won't make a profit.

Really? None of them are making profits?

[nomadking]

Originally Posted by jfman

Really? None of them are making profits?

None of them have gone bust?

---------- Post added at 17:09 ---------- Previous post was at 17:06 ----------

Originally Posted by Jaymoss

Esso and Shell are singing and dancing all the way to the bank but are also hoping the Tories block the Windfall Tax vote today

It's all the other producers that are "singing and dancing all the way to the bank". They are getting paid more and don't have to contend with UK tax and business regulations.

[Jaymoss]

Originally Posted by nomadking

None of them have gone bust?

---------- Post added at 17:09 ---------- Previous post was at 17:06 ----------


It's all the other producers that are "singing and dancing all the way to the bank". They are getting paid more and don't have to contend with UK tax and business regulations.

Shell, BP, Exxon Mobil and Chevron 1st quarter combined profits 22 Billion. Centrica (BG) also doing well

E.on also expecting a .5 Billion profit increase

[nomadking]

Originally Posted by Jaymoss

Shell, BP, Exxon Mobil and Chevron 1st quarter combined profits 22 Billion. Centrica (BG) also doing well

E.on also expecting a .5 Billion profit increase

So producers and/or non-UK companies, and not UK suppliers.

[jfman]

Originally Posted by nomadking

So producers and/or non-UK companies, and not UK suppliers.

Profit is profit. Plenty of it sucked from consumers due to inadequate regulation.

[1andrew1]

Energy retailers eg Octopus - those that buy in advance are ok, those that don't have been nationalised or placed into administration.

Energy wholesalers eg BP are making good profits from the surge in wholesale prices.

However, there is a degree of vertical integration so many do both eg Centrica/British Gas, Shell, EDF, E-on, Scottish Power, etc.

[Jaymoss]

Originally Posted by nomadking

So producers and/or non-UK companies, and not UK suppliers.

Shell made the most profit locally from their wells in the North Sea supplying Gas to the UK I believe and they are one of the companies who will be hit by the hopeful windfall tax

[nomadking]

Originally Posted by Jaymoss

Shell made the most profit locally from their wells in the North Sea supplying Gas to the UK I believe and they are one of the companies who will be hit by the hopeful windfall tax

Shell is a producer. Not their fault, buyers are having to pay high prices. Not their fault the UK and other countries(eg Germany) have introduced extra costs, rules, and restrictions, that have played a major part in creating the situation.

[Mr K]

Originally Posted by nomadking

Shell is a producer. Not their fault, buyers are having to pay high prices. Not their fault the UK and other countries(eg Germany) have introduced extra costs, rules, and restrictions, that have played a major part in creating the situation.

On the bright side my Shell dividends have been increasing nicely. Just as well my old man was a Tory and bequeathed shares to me

[Jaymoss]

Originally Posted by nomadking

Shell is a producer. Not their fault, buyers are having to pay high prices. Not their fault the UK and other countries(eg Germany) have introduced extra costs, rules, and restrictions, that have played a major part in creating the situation.

Of course it is their fault. Ultimately they are the ones(among others) charging the inflated prices because demand is high. They do not have to they just are. You just have to see their profits to see where the money is going

[1andrew1]

Originally Posted by nomadking

Shell is a producer. Not their fault, buyers are having to pay high prices. Not their fault the UK and other countries(eg Germany) have introduced extra costs, rules, and restrictions, that have played a major part in creating the situation.

Shell may have gained from the hike due in part to Ukraine but they have had to exit Russia.

Poor regulation has helped increase UK prices - allowing gas storage to be closed, allowing the highest profit margins of any sector including private equity!

Gas and electricity networks top UK profit margin rankings

Soaring energy bills and power blackouts raise calls for greater scrutiny of regional monopolies

UK gas and electricity distribution companies have higher profit margins than any other sector, prompting calls for intervention at a time of soaring energy bills and frequent electricity blackouts in parts of the country.

The regional infrastructure monopolies whose pylons and cables carry electricity from power stations to end users are achieving operating margins of 42.5 per cent, according to analysis by industry research provider IbisWorld, while gas distributors are earning 40.5 per cent.

The margins, which come before tax and financing costs are deducted, outstrip those in more than 400 other sectors including private equity at 32.5 per cent and commercial real estate at 33.4 per cent, according to IbisWorld.

High operating margins enabled the regional electricity networks to pay out £3.6bn in dividends to their owners between 2017 and 2021, with gas distribution networks distributing £2.4bn to theirs over the same period, according to a separate report by Common Wealth, a left-of-centre think-tank that has the Labour politician Ed Miliband on its board.

https://www.ft.com/content/aff47fb4-...a-ebd462f4142b

[tweetiepooh]

Originally Posted by Jaymoss

Esso and Shell are singing and dancing all the way to the bank but are also hoping the Tories block the Windfall Tax vote today

Interesting that in good times we want government to keep out of the way, keep tax low and so on. But when hard times hit they need to apply taxes and help out.
Surely we need to apply taxes during the good times to build up surplus and then we have something available to provide support when the hard times arrive.