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FGSZ CAPEX doubles in 2010

FGSZ Foldgazszallito, the gas delivery unit of Hungarian oil and gas company MOL, spent HUF 74.5 billion on expenditures in 2010, more than double the HUF 31.7 billion in 2009, a report prepared for MOL's annual general meeting shows.

The capital expenditures include spending on a 290km gas pipeline between Hungary and Croatia. The length of the pipeline on the Hungarian side is 205km. The line is to start operating in mid-2011.

FGSZ had operating profit of HUF 43.8 billion in 2010, up 9% from the same period a year earlier.

Revenue from domestic deliveries edged up 1% to HUF 66.7 billion. A price freeze in the second half of the year caused FGSZ about HUF 10 billion in lost revenue, the report noted.

FGSZ's return on assets for domestic deliveries was under the 8.78% recognised by the regulatory authority in 2010. This year, FGSZ's weighted average yield is expected to be around 6.5%.

FGSZ's revenue from transit deliveries was HUF 17.5 billion in 2010, little changed from 2009. Transit delivery volume, however, climbed 24%.