Capital expenditure program
Disciplined, selective investment policy
Our Group capital expenditure (CAPEXCapital Expenditures) was HUF 275 bn (17% lower than previous year) in 2011, bellow our operating cash flow. The investments focused on growth type projects, like our exploration and developments in Kurdistan Region of Iraq and Russia. In DownstreamRefining and Marketing, Retail and Petrochemicals the modernization of Rijeka refinery in DownstreamRefining and Marketing, Retail and Petrochemicals and the Thermal Power PlantA thermal power station is a power plant in which the prime mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator (regional average net electric efficiency of existing thermal power plants is approximately 35%). revamp in Bratislava refinery were the main projects.
Exploration & Production CAPEXCapital Expenditures with more focus on Kurdistan Region of Iraq and Russia
UpstreamExploration and Production Segment. CAPEXCapital Expenditures decreased by 9% year-on-year, to HUF 111.8 bn, primary as a result of lower Syrian spending after finishing major development in 2010, and political upheaval in 2011. However, exploration costs remained practically flat as MOL allocated more CAPEXCapital Expenditures on its activity in Kurdistan Region of Iraq. Within development main focus turned to Russia from Syria, however, Hungarian spending increased as well.
DownstreamRefining and Marketing, Retail and Petrochemicals CAPEXCapital Expenditures down by 10% after finishing Phase I upgrade in Rijeka
DownstreamRefining and Marketing, Retail and Petrochemicals CAPEXCapital Expenditures was HUF 111 bn, down by 10% year-on-year after Phase I of Rijeka refinery upgrade finished in the first half of 2011. Our biggest project in 2011 was the Thermal Power PlantA thermal power station is a power plant in which the prime mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator (regional average net electric efficiency of existing thermal power plants is approximately 35%). investment in the Bratislava refinery. In Retail, MOL acquired 19 new filling stations from Slovenian TUS. In Petchem, the vast majority of projects were maintenance type.
CAPEXCapital Expenditures much lower
Total CAPEXCapital Expenditures of the Gas and Power segment was HUF 18.3 showing noteworthy drop from HUF 80bn CAPEXCapital Expenditures spent in 2010 when the Hungarian-Croatian cross border pipeline was implemented.
Corporate & Other segment CAPEXCapital Expenditures increased due to INA share purchase
Capital expenditures of the Corporate and Other segment was HUF 33.4 bn in 2010 versus HUF 6.9 bn in 2010.
MOL Group at a glance
Historical summary of financial information
Key group operating data
Management Discussion and Analysis
Integrated Risk Management Function
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