Renewable Fuels bring EUR 31m in Q2 op profit for Neste Oil

Aug 8, 2014 - Finland's Neste Oil Corp (HEL:NES1V) said Tuesday its Renewable Fuels division has booked a comparable operating profit of EUR 31 million (USD 41.5m) in the second quarter of 2014, down from EUR 33 million the previous year.

The renewable products' reference margin was significantly lower than a year ago, which resulted in a EUR-42-million negative impact, the company explained. This, however, was compensated by a stronger additional margin, which brought a positive impact of EUR 19 million. The unit’s comparable operating profits were also influenced by pending US biofuel regulations and narrow European price differentials between FAME biodiesel and palm oil.

Comparable earnings before interest, tax, depreciation and amortisation (EBITDA) fell to EUR 54 million from EUR 58 million in the second quarter of 2013. However, it grew by EUR 15 million when compared to the first quarter of 2014.

The renewable fuels segment's revenue for the reporting period increased to EUR 603 million from EUR 535 million. Sales volumes totaled 561,000 tonnes, registering a 36% jump.

Neste Oil's group comparable operating profit in the second quarter fell to EUR 85 million from EUR 88 million a year earlier. It said it still expects operating profits in 2014 to come around to EUR 450 million, plus-minus 10%.

(EUR 1.0 = USD 1.337)

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