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Shell sets new profit record
Topic Started: Jan 31 2008, 09:18 AM (340 Views)
timmadigan
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Chief Engineer
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Looking at the numbers in detail (being an accountant and such...)

Revenue grew by 12% year-over-year and 41% 4Q06-4Q07

Cost of Goods Sold increased comparibly - 13% and 44%

Gross Margin - Revenue - the Direct Cost of producing them increased 6% & 27%, respectively - good but not great, compared to growth in revenue -- costs increased faster than revenue grew.

Overall GM% dropped from 17% to 15% Quarter-to-quarter and from 17.5% to 16.6%, year-over-year -- another not-so-great sign.

What happed was that period-over-period G&A/basic operating costs held steady and there was a gain in profits from equity investments period-over-period, which offset this.

What's also missing is what their reserves look like? Did they rob Peter to pay Paul? Are they going to take a future hit to either replenish their reserve tanks or did they jack-up pumping to run their numbers and are going to take the hits either in expense (replenish the tanks) or lower future output/lower revenue?

We also see a large jump in both their outstanding AR (money owed to them) and AP (money they owe). Both increased by over 20%, which is not good since revenue/expenses didn't increase accordingly.
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timmadigan
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One other thing - even with the increase in revenue, Cash Flow from Operating Activities (pre-tax) stayed flat year-over-year.
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SaveOurSilverstone
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timmadigan,Jan 31 2008
06:19 PM
Looking at the numbers in detail (being an accountant and such...)

Revenue grew by 12% year-over-year and 41% 4Q06-4Q07

Cost of Goods Sold increased comparibly - 13% and 44%

Gross Margin - Revenue - the Direct Cost of producing them increased 6% & 27%, respectively - good but not great, compared to growth in revenue -- costs increased faster than revenue grew.

Overall GM% dropped from 17% to 15% Quarter-to-quarter and from 17.5% to 16.6%, year-over-year -- another not-so-great sign.

What happed was that period-over-period G&A/basic operating costs held steady and there was a gain in profits from equity investments period-over-period, which offset this.

What's also missing is what their reserves look like? Did they rob Peter to pay Paul? Are they going to take a future hit to either replenish their reserve tanks or did they jack-up pumping to run their numbers and are going to take the hits either in expense (replenish the tanks) or lower future output/lower revenue?

We also see a large jump in both their outstanding AR (money owed to them) and AP (money they owe). Both increased by over 20%, which is not good since revenue/expenses didn't increase accordingly.

i was going to say that..... :D
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