Neste posts record profit

Neste, one of Europe’s biggest producers of biofuels, reported stronger profits for 2017 and expects the additional margin for renewable products to stay at a “good” level in 2018.

In an earnings statement this week, the Finland-based oil and biofuels refiner said it had posted an all-time high operating profit of EUR 1.101 billion compared with EUR 983 million for the equivalent period in 2016.

Neste said its renewables products division turned in full-year operating profit of EUR561 million in 2017 (compared with EUR 469 million in 2016), which it said “was a great achievement without the US Blender's Tax Credit.”

This week US Congress approved the tax credit retroactively for the year 2017, which will increase the returns on the company's exports of biofuels to the US.

The Finnish refiner said sales volumes were almost 2.6 million tonnes last year, a new annual record and up 16% on 2016.

It added in its statement: “As planned, the share of 100% renewable diesel delivered to end-users increased from 15% in 2016 to 25% of total volumes in full-year 2017.”

Neste said sales volumes of the 100% renewable diesel delivered to end-users are planned to grow towards our 50% target in 2020.

It added that the vegetable oil market is expected to remain volatile, and that the company would continue to expand the use of lower-quality waste and residue feedstock.

“Utilization rates of our renewable diesel facilities are expected to be high, except for the planned maintenance shutdowns,” the company said.

The Espoo-based company this week also appointed a new CEO, Peter Vanacker, to take over in November from Matti Lievonen, who has been CEO since 2008.