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In 2004 and 2005, Duke can support current operations with a maintenance capital spending budget of $1.8 billion, he said.
The company generated $4.4bn of cash in the first half of the year, enough to cover the $2.2bn cost of the dividend plus $1.2bn of maintenance capital expenditure.
Cummings tweeted: "The school maintenance capital budget is subsidising it – so a bunch of roofs stay leaky to pay for it".
We also estimate that El Tesoro is making a loss, with estimated production costs (including depreciation and maintenance capital expenditure) of 214c/lb".
One of my CFOs once told me that the return on new capital investment is long term and the success rate has a high variance, while the return on "maintenance capital investments" required to keep existing production facilities running is short term and has a low variance.
About $330 million of operating cash flow goes to maintenance capital expenditures nondiscretionary spending.
Similar(47)
He likes the fact that the company's maintenance-capital expenditures, at 11% of operating income, run less than a third that of similar companies.
Annual recurrent costs of spare parts and maintenance of capital costs are estimated as 5% of the total capital cost.
And electricity from coal — which also includes fuel, maintenance and capital recovery costs — is expensive.
Clerical and other support staffing has been trimmed, as well as maintenance and capital projects.
The revenue increase was offset by extra spending on upgrades and maintenance, with capital spending up by £216m to £3.2bn.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com