Disciplined, selective investment policy
Our Group capital expenditure (CAPEX) 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 Downstream the modernization of Rijeka refinery in Downstream and the Thermal Power Plant revamp in Bratislava refinery were the main projects.
Exploration & Production CAPEX with more focus on Kurdistan Region of Iraq and Russia
Upstream CAPEX 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 CAPEX on its activity in Kurdistan Region of Iraq. Within development main focus turned to Russia from Syria, however, Hungarian spending increased as well.
Downstream CAPEX down by 10% after finishing Phase I upgrade in Rijeka
Downstream CAPEX 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 Plant 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.
CAPEX much lower
Total CAPEX of the Gas and Power segment was HUF 18.3 showing noteworthy drop from HUF 80bn CAPEX spent in 2010 when the Hungarian-Croatian cross border pipeline was implemented.
Corporate & Other segment CAPEX 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.