Neste reports record quarterly renewable diesel sales

By Erin Voegele | August 08, 2017

Neste has released financial results for the second quarter of 2017, reporting record-high sales volumes of renewable fuels. The company sold 674,000 tons of renewable diesel during the three-month period.

During the second quarter, the company’s renewable products division recorded a comparable operating profit of EUR 101 million ($118.61 million), compared to EUR 119 million during the same period of last year. According to Neste, the segment was able to keep its result at a good level with the support of higher sales volumes and a more favorable market despite the expiration of the blenders tax credit in the U.S.

During the second quarter, 68 percent of renewable diesel sales volumes were allocated to Europe, with 32 percent to North America. Neste’s renewable diesel production facilities operated at a 96 percent utilization rate during the quarter. The company also noted feedstock optimization continued and the share of waste and residue feedstock was as high as 81 percent of total renewable inputs.

The reference margin for the renewable products division is expected to be higher in 2017 than the average level for 2016. Sales volumes of renewable diesel are expected to grow 15 percent this year when compared to last year, and account for approximately 25 percent of Neste’s total sales volumes in 2017. In addition, the company said utilization rates for its renewable diesel plants is expected to remain high for the remainder of the year. Neste also indicated the company is currently evaluating the feasibility of investing in new renewables production capacity. Options under review include locations in the U.S. and Singapore.

Overall, Neste reported comparable operating profit of EUR 236 million for the quarter, down from EUR 282 million. Operating profit totaled EUR 264 million, down from EUR 280 million. Renewable products comparable sales margin was $270 per ton, down from $405 per ton.