Neste Oil renewable fuels unit reports €10m Q4 operating loss

05 February 2009 09:31  [Source: ICIS news]

LONDON (ICIS news)--Neste Oil’s renewable fuels business reported a comparable operating loss of €10m ($12.8m) in the fourth quarter, down from a profit of €3m during the same period in 2007, the Finnish company said on Thursday.

“This was mainly due to the planned full-scale maintenance shutdown of the Porvoo plant,” Neste Oil added.

Sales for the quarter fell 26% to €20m from €27m.

The renewable fuels division’s full year comparable operating profit was €2m, up from a €13m loss in 2007, mainly due to the first NExBTL biodiesel plant being operational at Porvoo for part of the year.

Higher costs were related to growth projects and R&D.

At group level, Neste Oil reported a fourth quarter comparable operating profit of €103m, up from €84m during the same period last year. For the full year, comparable operating profits fell 3.8% to €602m.

“The oil market witnessed an unprecedented fall in prices in the second half of 2008. This resulted in exceptional inventory losses,” said president and CEO Matti Lievonen.

“Our total refining margin increased significantly in 2008, and is clear evidence that, as a refiner focused on diesel and other middle distillates, we were better-placed than most refiners,” he added.

Lievonen said that going forward, the company would need to focus on reducing costs and improving efficiency to safeguard profits and cash flow.

($1 = €0.78)

To discuss issues facing the chemical industry go to ICIS connect


By: Hilde Ovrebekk
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index