History   

Capital expenditure
€ million

Jan – Sep
2008

Jan – Sep 2007

+/–
€ million

Jan – Dec
2007

1

Including intangible assets.

Capital expenditure on property, plant and equipment1

 

 

 

 

RWE Power

1,009

772

237

1,127

RWE Dea

431

354

77

505

RWE Supply & Trading

1

–1

3

RWE Energy

579

448

131

1,147

RWE npower

302

379

–77

587

Water Division

430

–430

635

Other, consolidation

204

29

175

61

Total

2,525

2,413

112

4,065

Capital expenditure on financial assets

 

 

 

 

RWE Power

1

1

67

RWE Dea

RWE Supply & Trading

293

293

1

RWE Energy

100

47

53

55

RWE npower

Water Division

9

Other, consolidation

507

31

476

30

Total

901

79

822

162

Total capital expenditure

3,426

2,492

934

4,227

The RWE Group spent € 3,426 million in capital in the first three quarters of 2008. American Water is no longer included in this figure. The € 2,492 million recorded in the same period last year, which still included the US water utility, was exceeded by 37 %. This is predominantly allocable to capital expenditure on financial assets, which at € 901 million was far above the low figure (€ 79 million) achieved in the corresponding period in 2007. The single-largest item was RWE Supply & Trading’s acquisition of a 50 % interest in Excelerate Energy, a US-based company that specializes in the transportation of liquefied natural gas. This transaction was completed at the end of May. Moreover, RWE Innogy undertook new growth projects, namely the acquisition of wind power plant operator Iberian Renovables Corporación (formerly “Urvasco Energía”) and the establishment of a joint venture with Fri-El Green Power for the development of wind and biomass projects in Italy. Our capital spending on property, plant and equipment totalled € 2,525 million and was thus 5 % up year on year. Excluding American Water, it was 27 % higher. Forty percent of the funds were spent by RWE Power. The division’s major investment project is the construction of a 2,100-MW dual-block lignite-fired power plant in Neurath, Germany. Furthermore, RWE Power is building an 875-MW combined-cycle gas turbine power station in Lingen and a 1,530-MW hard coal twin-unit power plant in Hamm (both of which are located in Germany). RWE Dea has stepped up its capital expenditure on the exploration of gas reserves in North Africa. RWE npower’s biggest project is the construction of a 1,650-MW combined-cycle gas turbine power plant in Staythorpe, UK. RWE Energy earmarked most of the capital it spent on property, plant and equipment for measures to maintain and improve grid infrastructure. Capital expenditure on property, plant and equipment by RWE Innogy, which is in its startup phase, was still rather low (€ 143 million). Most of it was used to increase our wind-based power generation capacity.


 

Please tell us,
what you like about our online report