Learnings from the Earnings – Who’s Up? Who’s Down?

Neste

The Top Line. Comparable operating profit totaled EUR 1,422 million (EUR 1,101 million). Operating profit totaled EUR 1,025 million (EUR 1,171 million). Cash flow before financing activities totaled EUR 870 million (EUR 628 million). Dividend proposed to be increased by 34% to EUR 2.28 per share.

The Big Highlights. Oil Products’ performance was impacted by a less supportive margin environment and a weaker US dollar compared to 2017, but Neste’s renewables exceeded expectations. Renewable Products posted an outstanding full-year comparable operating profit of EUR 983 million (561 million). Their comparable sales margin was significantly higher than in 2017, and had a positive impact of EUR 512 million on the comparable operating profit. Additionally, the retroactive US Blender’s Tax Credit decided for the full year 2017 had a positive impact of EUR 140 million on the comparable operating profit in the first quarter.

President and CEO Peter Vanacker said, “Neste had a very strong year in 2018. We posted a record-high comparable operating profit of EUR 1,422 million, compared to EUR 1,101 million in 2017. Renewable Products exceeded the previous year’s high performance as a result of a favorable market and successful sales margin optimization. We also took an important step in implementation of the renewables growth strategy, when the final investment decision on the Singapore production capacity expansion was taken in December.

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