British Gas Profits go From £95 million to £571 million

#2
It's good to see a British Company doing so well for themselves. No doubt they also pay a considerable amount in business tax.

Congratulations to British Gas.

Maybe they should use the money to buy Northern Rock!
 
#3
I'll be sure to raise a glass to them, myself, then. Of course, I won't be able to afford both a glass and something to drink out it, seeing how energy bills are sending my cost of living sky-rocketing while my wages plod along in keeping with the official (i.e. bogus) rate of inflation.

Yet another example of why private businesses should not be allowed to run national utilities.
 
#4
So £476m in BG's profits is from domestic consumers bills?? No one would be short sighted enough to believe that would they?
 
#5
I don't give a shit where the massive increase in profit comes from. I still think it obscene that they can be raking it in to this phenomenal extent at the same time as they're squeezing my ability to benefit from my own bloody earnings 'til the pips squeak.

So Joe Public exists to guarantee an increased dividend to shareholders? No-one could be politically dogmatic enough to believe that would they?
 
#6
You all (especially the older persons amongst us) had a chance to by shares years ago,Remember Tell Sid adverts. I think at the time they were £1.50, NOW £11.50, WHO'S SORRY NOW.!!!!!!!!!

CTC
 
#7
British Gas average bill 2004 ~ £379 in 2008 ~ £568
£189 increase in 4 years, Energy prices are relative like everything else.

If they had made a massive loss and had to be bailed out by tax payers there would be complaints too wouldn't there?

The price of gas is not going to go down, Fact.
 
#8
TheBigUn said:
British Gas average bill 2004 ~ £379 in 2008 ~ £568
£189 increase in 4 years, Energy prices are relative like everything else.

If they had made a massive loss and had to be bailed out by tax payers there would be complaints too wouldn't there?

The price of gas is not going to go down, Fact.
Might I ask where You got Your figures from, especially in the view of this quote.

Since 2003, the average gas bill for British Gas customers has risen by 76.7% to £653, according to consumer group Energywatch.
I am especially interested in quote of average 2008 prices - given that the bills for the year are not due out for another 9 and a half months.
 
#9
That's just the problem, the price of gas goes up and down all the time. In the first 6mths of last year it actually dropped by 50%, but then went up again towards the back end of the year. Problem seems to be that BG and all the other power companies are very keen to pass on any increase instantly, but not quite as keen to pass on the reductions as quickly.
 
#10
Sven said:
TheBigUn said:
British Gas average bill 2004 ~ £379 in 2008 ~ £568
£189 increase in 4 years, Energy prices are relative like everything else.

If they had made a massive loss and had to be bailed out by tax payers there would be complaints too wouldn't there?

The price of gas is not going to go down, Fact.
Might I ask where You got Your figures from, especially in the view of this quote.

Since 2003, the average gas bill for British Gas customers has risen by 76.7% to £653, according to consumer group Energywatch.
I am especially interested in quote of average 2008 prices - given that the bills for the year are not due out for another 9 and a half months.
From your favourite Newspaper Sven..............

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/21/bcngas221.xml
 
#12
Sven,
What would speak volumes is if the despicable labour government you lovingly support used the huge amount of business tax that it makes from BG to subsidise pensioners fuel bills.

:D
 
#13
I'm neither supporting or attacking BG when I say that quoting the £500 million plus figure doesn't actually tell you anything .Unless you know what amount of investment that is based on. Most of the shares in BG are held by pension funds and private indivuals so the figure that should be broadcast is the return on investment. A 40% rise in profit isn't much if previous profits were low ((a 40% rise on a 2% profit is still only 2.8% return on capital ). When are the media going to treat the public with a little respect and tell us the facts?
 
#14
I'm neither supporting or attacking BG when I say that quoting the £500 million plus figure doesn't actually tell you anything .Unless you know what amount of investment that is based on. Most of the shares in BG are held by pension funds and private indivuals so the figure that should be broadcast is the return on investment. A 40% rise in profit isn't much if previous profits were low ((a 40% rise on a 2% profit is still only 2.8% return on capital ). When are the media going to treat the public with a little respect and tell us the facts?
 
#15
Nice to hear that a British company is making a profit, but maybe some reduced bills would now be appropriate, especially for the pensioners.
 
#16
smartascarrots said:
I'll be sure to raise a glass to them, myself, then. Of course, I won't be able to afford both a glass and something to drink out it, seeing how energy bills are sending my cost of living sky-rocketing while my wages plod along in keeping with the official (i.e. bogus) rate of inflation.

Yet another example of why private businesses should not be allowed to run national utilities.
 
#17
Right, to all the idjits out there who are incapable of doing any research on a company before commenting on how it makes 'sooo much money its disgusting etc etc'.

From the BBC article:

Quote
Centrica said two-thirds of the group's earnings were made in the first half of 2007, when wholesale gas prices were falling.
Unquote

The profits were made by hedging - they had previously sold the gas, either to customers on fixed price bills, or businesses on the same. Those fixed bills (like a fixed mortgage) gave customers surety of payment levels, with the risk that if the gas price fell, they would be paying more than the cost, but likewise if it rises, they would be winning. Same goes for big businesses.

As the gas price fell, BG made money from the difference in bought forward contracts, and the wholesale gas price ie they hedged the difference and made a higher profit margin.

They would also have privately hedged the gas price with their own investments, increasing their profits.

Had the price gone the other way, they would have lost the same amount.

So lets not get all poncy that they creamed the profit by increasing their prices to stiff everyone - every single gas company increased prices, as it was felt that there would be an increase in the gas wholesale cost.

You will also note that the BBC mention EDF Energy (French) and Npower (Owned by RWE, who are German). So, if you want a company to make money would you rather it the british one (paying tax in the UK) or one from another country?

Further:

quote
The news came as Centrica, British Gas' parent company, reported a 40% rise in operating profits to £1.95bn.
Unquote

Take two seconds to look at Centricas website and you will see they operate in a number of countries around the world, booking profits here for those operations - and pay tax on those profits in the UK.


It really annoys me when people complain about companies making too much money - it is such an ignorant comment!
 

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