Neste Corp. on July 25 released second quarter results, reporting that operational performance at the company’s facilities was solid during the three-month period despite a very challenging market environment for renewables. 

 According to Neste President and CEO Matti Lehmus, Neste’s renewable products segment reported comparable EBITDA of EUR 152 million for the quarter, down from EUR 513 million during the same period of last year. EBITDA was impacted by lower comparable sales margins, which fell from $800 per ton during the second quarter of 2023 to $382 per ton during the second quarter of 2024. The share of waste and residue inputs for the quarter was 88%, down from 96% during the second quarter of 2023.

Renewable sales volumes for the second quarter were at 955,000 tons, down only slightly from 957,000 tons during the same three-month period of last year. Lehmus said sales volumes were impacted by the preparation for the upcoming maintenance shutdowns at the company’s refineries in both Rotterdam and Singapore. 

During the second quarter, approximately 49% of the volumes were sold to the European Market, and 51% to the North American market, compared to 60% and 40%, respectively, during the same period of 2023.

Lehmus also noted that Neste continued its efforts to grow its sustainable aviation fuel (SAF) business during the quarter and expects its SAF sales to grow clearly in the third and fourth quarters of this year. 

According to data released by Neste, the company produced 1.045 million metric tons of renewable products during the second quarter, including 858,000 metric tons of diesel, 164,000 metric tons of SAF and 24,000 metric tons of other products. The utilization rate was 81%. During the same period of last year, total production was at 982,000 metric tons, including 905,000 metric tons of renewable diesel, 52,000 metric tons of SAF, and 63,000 metric tons of other products. The utilization rate was at 107% during the second quarter of 2023.

For the full year 2024, Neste expects total sales volumes for the renewable projects segment to increase when compared to last year, reaching approximately 4.4 million metric tons. SAF is expected to account for 500,000 to 700,000 metric tons of that volume. The full year average comparable sales margin is currently expected to be in the range of $480 to $580 per ton.

The report also briefly addresses operations at the Martinez Renewable Fuels biorefinery, which is a joint venture between Neste and Marathon Petroleum Corp. The biorefinery was impacted by a fire in late 2023 and has been operating at slightly below 50% capacity during the first half of 2024. According to Neste, the facility is expected to reach 75% capacity during the third quarter and be operating at 100% capacity by the end of the year.