Biofuel supplier Neste reports strong second quarter

Renewable products continued to deliver strong profits reports Finnish Neste in it´s Q2 2016 report. /Lennart Ljungblom /2016-07-29

“Neste’s strong performance continued as we were able to improve our result by successful own actions, which were reflected in high additional margins. The reference margin in Oil Products was below last year’s level, but almost at par in Renewable Products. Neste recorded a comparable operating profit of EUR 282 million during the second quarter, compared to EUR 78 million last year, CEO Matti Lievonen stated in a press conference July 28.

He continued:

“Renewable Products recorded a comparable operating profit of EUR 119 million (EUR 54 million) during the second quarter. Renewable Products’ reference margin remained almost at the same level as in the corresponding period last year. We continued to be able to increase our additional margin significantly by successful margin management, sales allocation, and by capturing a high share of the US Blender’s Tax Credit. Feedstock optimization continued, and the share of waste and residue feedstocks reached 93% of total inputs during the second quarter. The major turnaround at the Rotterdam refinery has now been successfully completed and will help ensure the refinery’s performance and safety during the coming years. The turnaround had a EUR 35 million negative impact on the operating profit.”

The share increased by 9 percent on the Helsinki stock market after the report.

Neste produce two million ton renewable diesel in Porvo in Finland, Rotterdam in the Netherlands and in Singapore the largest producer och renewable diesel in the world with a yearluy production of 800 000 ton/y. The company also have around 1000 petrol stations in Finland, the Baltics and northwestern Russia. /Lennart Ljungblom /2016-07-29