Neste Oil's renewable fuels arm posts Q3 operating loss of €6m

29 October 2009 10:48  [Source: ICIS news]

LONDON (ICIS news)--Neste Oil's renewable fuels segment posted a third-quarter comparable operating loss of €6m ($8.8m) due to squeezed margins, the Finland-based refining and marketing company said on Thursday.

The comparable operating loss reported in the 2008 third quarter was €3m, Neste said, while the comparable operating loss in the 2009 second quarter was €7m.

The segment's third-quarter revenues were €59m, which was significantly higher than the €27m in revenues reported in the 2008 third quarter and up from the second quarter’s revenues of €38m.

The start-up of a second NExBTL renewable diesel plant at Porvoo, Finland, had a positive impact on sales volumes, but this was offset by lower margins and higher costs year on year,  Neste said.

At the group level, comparable operating profit for the quarter was down 79% year on year at €42m, which was largely due to a 56% year-on-year drop in refining margins, the company said.

Quarterly revenues were down 44% at €2.5bn due to lower oil prices, Neste said.

The reported net profit for the quarter was €74m, up from €34m that was recorded in the 2008 third quarter, it said.

($1 = €0.68)

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By: Nigel Davis
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