Neste released second quarter financial results on July 27, reporting robust demand for renewable diesel and relatively stable feedstock pricing. Sustainable aviation fuel (SAF) and renewable diesel sales were up 17 percent when compared to the second quarter of 2022.

Neste’s renewable products segment posted a comparable EBITDA of EUR 513 million in the second quarter, down from EUR 538 million during the same period of last year. The comparable sales margin for renewable products was $800 per ton, down from $841 per during the second quarter of 2022, which Neste said was supported by its global feedstock optimization, but also reflected costs related to the ramp up for the Singapore refinery and a higher volume of sales from its Martinez joint venture with a lower sales margin.

Renewable diesel and SAF sales volumes reached 946,000 tons during the quarter, up from 808,000 tons during the same period of 2022. Total renewable products sales volumes were at 957,000 tons, also up from last year. During the second quarter, approximately 60 percent of renewable products were sold into the European market, down from 71 percent during the second quarter of last year, while 40 percent were sold into the North American market, up from 29 percent last year.

Renewable diesel and SAF production had an average utilization rate of 107 percent nameplate capacity during the three-month period, up from 103 percent during the second quarter of 2022. The proportion of waste and residue feedstock was 96 percent, flat with the same period of last year.

Ramp-up of production at the Singapore refinery expansion progressed during the second quarter, but was delayed by an operational shutdown in June to repair equipment on the new production line. The Singapore ramp-up will continue during the remainder of 2023, Neste said, with SAF production in Singapore now expected to begin during the third quarter.

Moving into the third quarter, Neste expects renewable diesel and SAF sales volumes to be down when compared to the second quarter. The company said the expected sales volumes are impacted by continued repair work at the Singapore expansion. According to Neste, the sales volume impact from that repair work in the second and third quarter is expected to be approximately 230,000 tons for the second half of 2023. Sales volumes in the second half of the year are also expected to be impacted by a planned five-week maintenance shutdown of the existing Singapore production line. A four-week maintenance shutdown is also scheduled at the Rotterdam refinery during the fourth quarter.

A full copy of Neste’s second quarter report is available on the company’s website.