Neste Oil reports increased sales volume for renewable diesel

By Erin Voegele | February 09, 2015

Neste Oil has released financial results for 2014, reporting comparable operating profit of €583 million ($669.09 million), including comparable operating profit of €254 million during the fourth quarter.

The renewable projects comparable sales margin was $278 per ton in 2014, up from $328 per ton the prior year. Renewable products comparable operating profit for the fourth quarter was €141 million, up from €94 million during the same quarter of 2013, including €89 million from the U.S. blenders tax credit.

“Renewable products' reference margin remained significantly below the levels seen in 2013,” said Matti Lievonen, president and CEO of Neste Oil, in a statement. “We were able to grow our additional margin via feedstock flexibility and improvement actions in supply chain. Our sales volume increased by 9 percent from the previous year. A significantly higher share, 73 percent of the volume, was allocated to the European market in 2014. The volume allocation reflected the margin situation and continued regulatory uncertainty in the U.S. Decision to reintroduce the U.S. blender's tax credit for the year 2014 was confirmed in late December. It had an almost €EUR 90 million positive impact on the segments' comparable operating profit.  The use of waste- and residue-based feedstock was successfully expanded and averaged 62 percent of total renewable inputs in 2014. Renewable products recorded a full-year comparable operating profit of €EUR 239 million compared to €273 million in 2013.”

Neste Oil operates three renewable diesel plants that produce its proprietary NEXBTL diesel. It’s facility in Porvoo, Finland, includes two production units, each with a capacity of 190,000 tons per year. One was commissioned in 2007, the other in 2009. The company also operates an 800,000-ton-per-year renewable diesel refinery in Singapore. That facility was commissioned in 2010. Finally, the company operates an 800,000-ton-per-year plant in Rotterdam, Netherlands, that was commissioned in 2011.