Economic|Interim reports
Neste’s second quarter turnover was 7,039 million euros. A year ago, the turnover was more than half smaller.
Oil refiner Neste’s second quarter result exceeded the high expectations the market had set for it.
Neste’s profit before taxes was 750 million euros. At the same time a year ago, the result was 465 million euros. The market expected the result to be around 677 million euros, so the realized result clearly exceeded both expectations and last year’s result.
Last year, Neste’s second quarter result was weakened mainly by the planned major shutdown of the Porvoo refinery.
Liquid the turnover for the second quarter was EUR 7,039 million. A year ago, the turnover was 3,022 million euros. The market expected Neste’s turnover to remain around EUR 6,000 million.
According to the company, the increase in turnover was due to the increase in market and selling prices and the increase in sales volumes. The increase in sales volumes increased turnover by approximately 2.4 billion and the increase in prices by approximately 1.4 billion euros.
The increase in prices is mainly due to Russia’s attack on Ukraine. The war has increased the price of oil products and natural gas in Europe. As a result of the war, the energy market has been exceptionally unstable.
Liquid EBITDA fell to a record 1,085 million euros. Last year, EBITDA was 377 million. EBITDA tells how much money the company has left over after the company’s operating expenses have been deducted from the turnover. It therefore describes the company’s actual business results before depreciation, financing items and taxes.
The comparable EBITDA of the department responsible for Neste’s petroleum products rose from 8 million euros in the second quarter of last year to 529 million euros, boosted by the rise in prices. The increase was mainly due to the improvement of the processing market. Last year, the major shutdown of the Porvoo refinery essentially weakened the result of the oil products segment.
The Renewable Products segment also significantly improved its result from last year. The segment’s comparable EBITDA for the second quarter was 538 million euros, compared to 341 million last year.
The segment’s comparable gross profit averaged $865 per ton. That’s a new quarterly record.
“The market situation for waste and residual raw materials continued to be tight as expected, but our sales margin was supported by an exceptionally strong diesel market, good sales performance and more favorable raw material prices at the end of the quarter,” says Neste’s CEO Matti Lehmus in the bulletin.
The market was convinced of Neste’s result. The company’s share price rose almost 9 percent 15 minutes after the stock market opened.
The news is updated.
Correction 28 July 2022 10:28: The news initially stated that the comparable EBITDA of Neste’s petroleum products segment would have risen from 60 million euros to 667 million euros. The figures in question describe figures from January to June.
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