Neste’s Q3 Outlook Brightens as Oil Products Margin Surges; Equipment Inspection Slows Singapore Refinery Expansion

Neste’s Q3 Outlook Brightens as Oil Products Margin Surges; Equipment Inspection Slows Singapore Refinery Expansion

(IN BRIEF) Neste, a leading energy company, has reported an improved outlook for its Oil Products segment’s margin in the third quarter of 2023. Despite the ongoing volatility in oil markets, margins for diesel and gasoline in Northwest Europe have seen a significant rise, positively impacting Neste’s refining margin forecast. The new outlook suggests that Neste’s third-quarter total refining margin will be notably higher than the second quarter’s USD 16.7 per barrel. However, the company has also faced challenges in its Singapore refinery expansion, as the ramp-up of renewable diesel and sustainable aviation fuel production was hindered by a recent shutdown for equipment inspection and repair. This setback is estimated to affect sales volume, primarily in the fourth quarter of 2023, with an impact of approximately 100,000 tons. Neste will provide further updates on its fourth-quarter sales volume in the upcoming third-quarter interim report.

(PRESS RELEASE) ESPOO, 13-Sep-2023 — /EuropaWire/ — While the oil markets have been volatile, Northwest European diesel and gasoline margins have during the third quarter increased to a high level, improving also the total refining margin outlook for Neste’s Oil Products in the third quarter.

New updated outlook: Neste’s Oil Products’ third-quarter total refining margin is expected to be significantly higher than in the second quarter of 2023 (USD 16.7/bbl).

Previous outlook: Neste Oil Products’ third-quarter total refining margin is expected to be slightly higher than in the second quarter of 2023 (USD 16.7/bbl).

Additional equipment inspection and repair works at the Singapore new line

Following the restart of the renewable diesel and sustainable aviation fuel (SAF) production at the Singapore refinery expansion in August, the ramp-up has been slowed down due to a recent shutdown at the new line for additional equipment inspection and repair works.

The sales volume impact of the ongoing inspection and repair works is estimated to be approximately 100,000 tons for the second half of 2023, mainly impacting the fourth-quarter sales.

Neste will update its fourth-quarter sales volume estimate for renewable diesel and SAF in its third-quarter interim report.

Neste Corporation

Susanna Sieppi
Vice President, Communications

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials.

As the world’s leading producer of sustainable aviation fuel and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, Neste helps its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.

The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2022, Neste’s revenue stood at EUR 25.7 billion. Read more: neste.com

Media Contact:

tel. +358 800 94025
media@neste.com

SOURCE: Neste Corporation