Neste reports strong Q2 financial results for renewable diesel
Source: Neste Corp.
July 30, 2019
BY Erin Voegele
Neste Corp. released financial results July 25 for the first half of 2019, reporting increased earnings for its renewable products segment, a new quarterly sales record for renewable products, and a high utilization rate of its renewable diesel capacity.
According to Neste, its renewable products division reported comparable operating profit of €286 million ($318.76 million) for the second quarter of the year, up from €177 million during the same period of 2018. For the first half of the year, comparable operating profit for the renewable products division was €623 million, up from €473 million during the same period of last year.
The company said the renewable diesel market continued to be favorable during the second quarter. Feedstock prices, however, increased. Sales volumes reached 745,000 tons during the second quarter, a new quarterly record. The comparable sales margin averaged $568 per ton, up from $508 per ton last year. During the second quarter, 65 percent of volume were sold into European markets, with 35 percent into North American markets. Neste said its renewable diesel production facilities operated at a utilization rate of 105 percent during the second quarter, with the share of waste and residue feedstock at 77 percent.
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Moving into the third quarter, sales volumes and utilization rates for the company’s renewable products are expected to remain high. A catalyst change at the Rotterdam renewable products refinery is scheduled to take place in the fourth quarter.
Overall, Neste reported €367 million in operating profit for the second quarter, up from €277 million during the same quarter of 2018. Operating profit was €358 million, up from €172 million during the second quarter of last year.
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