Neste reports positive quarterly results for renewables division

By Erin Voegele | November 02, 2017

Neste recently released third quarter financial results, reporting increased sales volumes and strong margins for the company’s Renewable Products division, which achieved a comparable sales margin of $435 per ton, up from $375 per ton during the same quarter of last year.

“Neste's strong performance continued in the third quarter, and we are on track to deliver a very successful year 2017,” said Matti Lievonen, president and CEO of Neste. “Oil Products' results were supported by a healthy refining margin environment and operational performance. Renewable Products was able to exceed last year's very good performance with higher sales volumes and strong additional margin, which we indicated in our Capital Markets Day communication in September. Marketing & Services continued to improve its profitability and delivered a strong quarterly operating profit. Neste recorded a comparable operating profit of EUR 350 million during the third quarter, compared to EUR 264 million in the corresponding period of 2016.”

The Renewable Products division reported a comparable operating profit of €171 million ($198.8 million), compared to €124 million during the third quarter of 2016. Neste said the segment was able to reach an excellent result through higher sales volumes and successful margin management. The reference margin was more than 10 percent higher than during the third quarter of last year, and the additional margin exceeded last year’s high level. The share of European sales volumes was 73 percent, while the share of North American sales was 27 percent. Renewable diesel production facilities operated at a 99 percent utilization rate during the quarter. The share of waste and residue feedstock accounted for 77 percent of total renewable inputs.

Neste produces renewable diesel at refineries in Porvoo, Rotterdam and Singapore. The facilities have a combined annual capacity of 2.6 million tons.

Overall, Neste reported third quarter comparable operating profit of €350 million, up from €264 million during the same period of last year. Operating profit reached €339million, up from €319 million.