Monday 6 August 2012

Month 3 Profit Report


Its time for the Month 3 Profit Report. It's been a difficult month, but let's first start with some numbers from today's snapshot.



Summary:
The profits for the 3rd month come in at 2b and represents an increase in the value of FCV of 1.64% from the previous month, or 54% since the project began.

Discussion: 
This past months profits have been pushed to almost nil by the technetium nerf and I apologize on behalf of FCV for this poor performance. As some of you will know, this past month tech went from 200,000 isk/pu to 80,000 isk/pu. Given that I run some rather large reaction chains, I tend to have around 100-150,000 units of tech stockpiled at any one time. That meant in a matter of days the value of that stockpile went from 30b to around 13b. In addition, reaction products dived and sold for under production cost. All in all, bit of a nightmare. I did what I could to mitigate losses, even traded the tech panic selling to claw back some ISK, but after the dust settled, I estimate my final losses from the nerf were around 20bill, and that is a conservative estimate. Also, to add salt to the wound, some griefer corp is maintaining a constant wardec against my alt corp hoping for a payout. Not an issue, but makes logistics annoying!

On the good news front, T1 and T2 manufacturing had another strong month. On the back of their sales, FCV still managed to claw a profit for the month. A small one, but at least a profit nonetheless! Sales turnover is slower this month because of summer holiday, but margins remain good.

Outlook: 
While it has been a painful month, the worst is over. Prices have stabilised and hopefully August sees less turmoil in the tech market. I hope that despite the slower rate of sales in the summer months, FCV can return to double digit billion profits next month.

Other notes:
- 500mill was donated to the Fearless ATX tournament fund, as they are dudes. They even named their vulture after me :)
- As I had spare liquidity, I invested 12b of FCV cash into buying a T2 bpo that I wanted. That 12b will remain apart of FCV assets.

Previous Profit Reports:

To clarify:
- 'Cash' section represents liquid ISK that is held in the corp wallet at the moment of the snapshot.
- 'Market Orders' represents the ISK value of all current buy/sell orders
- 'In Build' represents the build cost value of all items currently being manufactured
- 'Assets' represents the value of build materials (minerals, components) as well as the value of the tower reaction chain (i.e. the towers/silos etc) and their inputs


If you have any questions, feel free to comment on this blog or post in the FHC thread.

o/ cheebs

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