Neste releases interim report for January-September 2017

Renewable fuel producer Neste has released its interim report for the period January to September 2017. The results show that the Finnish company is set for a positive year, despite uncertainties hitting the European renewable fuels industry.

“Neste's strong performance continued in the third quarter, and we are on track to deliver a very successful year 2017. 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,” said Matti Lievonen, president and CEO of Neste.

The company’s Oil Products segment posted a comparable operating profit of €158 million, compared to €120 million in the third quarter of 2016. The company’s Porvoo refinery operated at a 97% utilisation rate. 

“Renewable Products recorded a comparable operating profit of €171 million, compared to €124 million in the third quarter of 2016. The segment was able to reach an excellent result through higher sales volumes and very successful margin management. The reference margin was over 10% higher than in the third quarter of 2016, and also the additional margin exceeded last year's high level,” Lievonen continued.

“The share of European sales volumes was 73%, while the share of North American sales was 27%. Operational performance was high as the renewable diesel production facilities operated at 99% utilisation rate. The share of waste and residue feedstock was 77% of total renewable inputs.”

Looking forward, the fourth quarter of 2017 is also looking positive for Neste’s Renewable Products segment.

“The Renewable Products' additional margin is expected to stay at a good level during the fourth quarter. Sales volumes of the 100% renewable diesel delivered to end-users are expected to grow from 15% in 2016 and we target to reach 25% of the total sales volumes in 2017,” Lievonen revealed. 

“The vegetable oil market is expected to remain volatile, and Neste aims to expand the use of lower-quality waste and residue feedstock. Utilisation rates of our renewable diesel facilities are expected to be high, except for a two-week shutdown of the Singapore refinery due to a hydrogen supplier's planned maintenance outage in November. The biopropane unit at the Rotterdam refinery is getting ready for the first product deliveries.”