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The real question is: how big are their profits/profit margins for the new market? Edit: and here is the money quote: > The company acknowledged that its fast
by oblio 4y ago
The real question is: how big are their profits/profit margins for the new market?
Edit: and here is the money quote:
> The company acknowledged that its fast-growing clean-energy business - including its solar, EV-charging and wind ventures - continues to lose money. BP does not expect profits from those businesses until at least 2025.
https://www.reuters.com/business/sustainable-business/bp-gambles-big-fast-transition-oil-renewables-2021-09-20/ https://www.reuters.com/business/sustainable-business/bp-gam...
- nine_k 4y agoInvestment is like that. First you spend on acquiring stuff, like building a large wind farm in the ocean. Then it starts to bring money, and eventually pays for itself. All the time while you are building the wind farm, you are spending more than the installation makes (it makes nothing), so you are losing money.
- oblio 4y agoInvestment is like that. But you're missing the obvious. BP is late to the party. There's no guarantee they'll make it against their new competitors. Which are probably already profitable. BP doesn't have any moat in the new domain, while their competitors probably have one or are more advanced in building it.