alt Hacker NewsI think that’s a glib dismissal without any analysis of the financials that motivate the investment being profitable in the first place.
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0_____0 • last Wednesday at 4:14 AM
You're not crazy. I think sometimes software people forget that perfectly happy industries sometimes have single digit operating margin.
cududa • last Wednesday at 3:50 AM
Are you doing a Jordan Peterson bit? The one where someone asks him "Do you believe in" and he says "Well what is the meaning of do, and what do you mean by you? And what is believe?"
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This is exactly it. Especially for the UK offshore projects where sites were auctioned off: All bidders knew that a competitive bid had to aim for an ROI only slightly above market rates, given that risk was very low. This means that 1 percent on production will easily turn into 10 or 20 percent on profit.
Source: worked on CAPEX and yield estimates for major player operating in this sector for a decade.