Fuel company In this has struggled throughout the year with weak margins, and its third-quarter results again fell short of the same period last year.
Neste’s comparable EBITDA for July–September remained at EUR 293 million, compared to EUR 1,047.0 million in the comparison period. by Vara Research the consensus forecast collected by 19 analysts had predicted 347.5 million euros.
Neste’s turnover in the third quarter was EUR 5,624.0 million. Analysts expected turnover to remain on average EUR 5,084.5 million, while it was EUR 5,973.0 million in July–September last year.
Neste’s July–September result before taxes fell to 26.0 million euros from 618.0 million euros in the same period last year. Comparable earnings per share were EUR 0.03, compared to EUR 0.70 in the comparison period.
It is still raining in renewables
Neste’s earnings this year have been weighed down by weak margins in both renewables and oil products. The background is the weakened demand for both renewable and oil-based fuels, along with the economic situation, and the accompanying fall in sales prices.
July–September to Neste the comparable sales margin of renewable products remained at USD 341.0 per ton, while it was USD 912.0 per barrel in the comparison period last year. Analysts expected the comparable sales margin to have fallen to an average of $360.1 per ton.
Regarding renewables, the comparable EBITDA remained at 106.0 million euros from 545.0 million euros in the comparison period. EBITDA from renewables did not reach the analysts’ consensus forecast of 136.0 million euros.
For the third quarter, Neste’s petroleum product refining margin was $10.60 per barrel, compared to $26.89 per barrel in the comparison period. Analysts on average were expecting a margin of $12.00.
The comparable EBITDA of oil products fell to 141.0 million euros from 472.0 million euros in the comparison period, while the analysts’ consensus was 167.6 million euros.
Instructions unchanged
Neste kept this batch of instructions unchanged. The guidelines were last updated for renewables in September.
Neste expects the total sales volume of renewables to increase this year from last year and rise to approximately 3.9 million tons (+/- 5%). It expects renewable jet fuel sales volume to reach 0.35-0.55 million tonnes, with a full-year average comparable sales margin for renewables of $360-480 per tonne.
Regarding petroleum products, Neste advises that the total sales volume of petroleum products will be lower this year than last year due to the major shutdown of the Porvoo refinery in the second quarter.
The company expects the total refining margin of petroleum products for the whole of 2024 to be lower than in 2023.
Source: www.arvopaperi.fi
