Capital Expenditure (CAPEX)
CAPEX in 2019 amounted to EUR 4,916 mn (2018: EUR 3,676 mn), mainly driven by the acquisitions of a 15% stake in the ADNOC Refining business as well as the Sapura Upstream business in Malaysia.
Upstream CAPEX decreased to EUR 2,070 mn (2018: EUR 3,075 mn), mainly as major acquisitions in New Zealand and Abu Dhabi took place in 2018, partially offset by an increase in CAPEX due to the acquisition in Malaysia in 2019. Moreover, the Upstream Business Segment invested mainly in field redevelopments, drilling and work-over activities in Romania as well as in field developments in Abu Dhabi and Norway.
Downstream CAPEX increased to EUR 2,774 mn (2018: EUR 576 mn), of which EUR 2,687 mn are attributable to Downstream Oil (2018: EUR 506 mn) and EUR 87 mn to Downstream Gas (2018: EUR 70 mn), mainly related to the acquisition of the ADNOC Refining business.
In the Corporate and Other segment, CAPEX amounted to EUR 72 mn (2018: EUR 25 mn).
In EUR mn |
|
|
|
||
|
2019 |
2018 |
∆ |
||
|---|---|---|---|---|---|
|
|||||
Upstream |
2,070 |
3,075 |
(33)% |
||
Downstream |
2,774 |
576 |
n.m. |
||
thereof Downstream Oil |
2,687 |
506 |
n.m. |
||
thereof Downstream Gas |
87 |
70 |
25% |
||
Corporate and Other |
72 |
25 |
191% |
||
Total capital expenditure |
4,916 |
3,676 |
34% |
||
+/– Changes in the consolidated Group and other adjustments |
(10) |
(86) |
88% |
||
– Investments in financial assets and acquisition of non-controlling interest |
(2,155) |
(4) |
n.m. |
||
Additions according to statement of non-current assets (intangible and tangible assets) |
2,751 |
3,585 |
(23)% |
||
+/– Non-cash changes |
(594) |
(393) |
(51)% |
||
Cash outflow due to investments in intangible assets and property, plant and equipment |
2,158 |
3,193 |
(32)% |
||
+ Cash outflow due to investments, loans and other financial assets |
2,265 |
305 |
n.m. |
||
+ Acquisitions of subsidiaries and businesses net of cash acquired |
460 |
357 |
29% |
||
Investments as shown in the cash flow statement |
4,883 |
3,855 |
27% |
||
The reconciliation of total capital expenditures to additions according to the statement of non-current intangible and tangible assets (for details, see Note 14 – Intangible assets – and Note 15 – Property, plant and equipment) mainly relates to additions, which by definition are not considered to be capital expenditures, as well as investments in financial assets and changes in the consolidated Group.
The difference between the additions shown in the statement of non-current assets and the investments reported in the cash flow statement partially arise from additions to intangible and tangible assets that did not affect investing cash flows during the period (including accrued liabilities arising from investments, new right of use assets, decommissioning and capitalized borrowing costs). In addition, cash outflows due to investments in financial assets as well as the acquisition of subsidiaries and businesses are included in the overall investments shown in the cash flow statement.