I'm a shareholder in these companies, so I just made a loss.
I've got this thing called a pension fund, invested in the stock market. So the Govt has just taken money out of my pension fund to give back in my energy bills.
They've also lost control of inflation which is also affecting those funds.
I'm not impressed.
Andy
And you unable to comprehend a simple calculation. As usual when you lose an argument you resort to abuse.
Then you didn't understand the linked article where the cost existing stock added to the gross profit.
Sold stock can be quantified at any point of the year. Stock takes are usually taken at the end of a company financial year for tax reasons, in much the same way many companies do their best to reduce stock at the end of their fiscal year.
I'm not the pig ignorant clown here.
Then tell the gross profit, and tell us if it includes the retained stock.
A loss? or just a smaller return?
If the share price drops due to the company paying a smaller dividend, a shareholder will see the value of his investment fall even though he may still see a return, albeit smaller. So if he were to sell his shares he may make a loss depending on what he paid for them originally. If he doesn't sell, his loss is only theoretical.
In broad terms, and I emphasise 'broad', share prices and dividends vary according to the average market rate of interest payable on investments. For example, if company A pays a small dividend, but company B pays a higher one, investors will sell shares in A and buy them in B. The price of company A's shares will fall as more come onto the market, and the price of company B's shares will rise as they are snapped up by investors, until the percentage return on the money invested roughly equals out. It's not quite that simple, as the company's future prospects also come into play. The effect is most obviously seen in government fixed-interest stocks.
Really? The supplier I was transferred to when the original went broke is Shell Energy.
Not in a failed chemist's mind, no. In an accountant mind, certainly.
You must be the thickest person on the planet, a disgrace to Australia, a failed chemist who can't add up.
This is the accounts for BP shareholders. I should know as I follow the company:
OK, but that is not the case for the other companies and even for Shell Energy - "The company does not generate electricity, instead purchasing it from international markets. Originally known as First Utility, the company had a relationship with Shell, where it acted as an intermediary to purchase wholesale energy on the global market." So it is run as a separate company, buying its supplies at market prices. It may be owned by the same group that own Shell as a whole, but it appears to run as a stand-alone company.
Indeed. I understand finance matters. I was querying whether or not an actual loss had been made.
What is an 'actual loss' - unless you sell the shares even the IR doesn't say that a profit or loss has been made. If your house, which you are not intending to sell, drops 30% in value, have you 'made a loss?'
So explain why wholesale prices were on the up long before Russia invaded Ukraine, and sanctions started?
Gas and oil prices were being affected by post-Covid demand rising faster than supply.
In the simple sense I have made a loss. The shares are worth less than they would have been.
Whether they are worth more or less than I paid for them - which was some years go for most of them - I'm not sure.
Andy
Shell and BP slashed their dividends in Early 2020 after oil prices collapsed which combined with a slump in demand dropped the BP share price from nearly £6 to about £2, While Shell dropped from just over £20 to about £9 at one point.
When you sell for less than you paid.
(....)
No, the market has moved but you have not made an actual loss untill you sell.
But until you sell you don't know if you have made a profit or a loss.
So your original comment was hypothetical as you don't know you have made a loss.
That's right it says inventory gains or losses. You pay tax on stock the once, only a moron would think you keep paying Corporation tax on the same stock value year in year out.
It takes time for production to ramp up and down.
Putin knew he could only wage this war when the prices were on the up, where demand outstrips supply.
Even he understands market supply and demand.
Share value also takes into account company valuation, not just dividend.
Given the oil reserves would have dropped in value it's not surprising the share value dropped, as well as the dividend.
I read an article that said US wells were pumping up oil at a loss during parts of the epidemic, such was the imbalance between supply and demand.
That's OK, then. Get a decent accountant to conceal profits and/or turn them into losses.
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