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Neste’s half-year profits buoyed by strong renewable diesel market

Neste
Neste's Singapore refinery. Credit: Neste
Finnish renewable diesel producer Neste has reported strong results for the first half of 2019, boosted by record sales in its renewable products division.

The company’s comparable operating profit totalled €746 million in the first six months of the year, up from €670 million in H1 2018.

Renewable products posted a comparable operating profit of €286 million for the second quarter, an increase of over €110 million compared to Q2 2018, due in part to a favourable market for renewable diesel.

Sales volumes in renewable products for the quarter were a record 745,000 tonnes, which was also supported by excellent operational performance at Neste’s renewable diesel refineries.

During the quarter, 65% of volumes produced were sold to the European markets, with the remaining 35% to North America.

Neste added that its renewable diesel production facilities operated at a very high average utilisation rate of 105%, based on a nominal capacity of 2.9 million tonnes per year.

“We are making good progress in our strategy execution,” said president and CEO Peter Vanacker. “The Singapore renewable production capacity expansion is proceeding as planned. The first commercial deliveries of renewable jet fuel and renewable polymers have taken place, and we expect sales volumes in these markets to slowly ramp up.”
Neste's Singapore refinery. Credit: Neste