Neste reports €5.97bn revenue in Q3

Neste Group posted revenue of €5.9bn in the third quarter (3Q), down 9% year-on-year due to lower market and sales prices despite higher volumes.

Segment-wise breakdown showed revenue earned from sales of renewable products (renewable diesel and sustainable aviation fuel) also declined by 8.5% year-on-year to €2.2bn from €2.4bn during the same period last year.

However, Neste’s comparable EBITDA from all segments clocked in at €1bn during the 3Q. Of this, the renewable products’ contribution stood at €545m, up 40% year-on-year from €389m mainly due to a higher sales margin and volume.

“Neste posted strong results in the Q3 of 2023 and our comparable EBITDA reached EUR €1.bn,” said Neste president and CEO, Matti Lehmus.

“The improvement in the [EBITDA] result versus the corresponding period last year was driven by renewable products, which increased its result by approximately 40%, despite the delayed ramp-up of the new production line in Singapore.”

Sales margin from renewable products reached $912/ton compared to $732/ton in the third quarter driven by improved net impact from the market, lower production costs and hedges year-over-year.

The company said that sales volumes in renewable diesel and sustainable aviation fuel (SAF) during the third quarter was 860,000 tons.

Production of renewable products at the company’s new expansion in Singapore are expected to restart in November which were which were shut down in September for additional repairs and inspections.

Meanwhile, the company said that construction activities are progressing at the Martinez Renewables fuels facility. Pretreatment capabilities are increasing through the second half of 2023, and the facility is expected to have a nameplate capacity of 730m gallons per year by the end of 2023.

While sharing the outlook, the company said that its renewable products’ production in 4Q of 2023 will be lower due to scheduled maintenance shutdowns of refineries in Rotterdam as well as Singapore.