London, February 13, 2025, (Oilandgaspress) –––Actions initiated to respond to a challenging market environment and weak financial performance
Year 2024 in brief:
• Comparable EBITDA totaled EUR 1,252 (3,458) million
• EBITDA totaled EUR 1,005 (2,548) million
• Renewable Products’ sales 3,729 (3,382) kton
• Oil Products’ sales 10,147 (11,885) kton
• Cash flow before financing activities totaled EUR -313 (751) million
• Comparable return on average capital employed (comparable ROACE) was 2.5% (23.9%)
• Leverage ratio was 36.1% at the end of December (31 Dec 2023: 22.7%)
• Comparable earnings per share were EUR 0.17 (2.88)
• Earnings per share: -0.12 EUR (1.87)
• Board of Directors will propose a dividend of EUR 0.20 per share (1.20), totaling EUR 154 (922) million
Fourth quarter in brief:
• Comparable EBITDA totaled EUR 168 (797) million
• EBITDA totaled EUR 143 (672) million
• Renewable Products’ comparable sales margin was USD 242 (813)/ton
• Oil Products’ total refining margin was USD 11.8 (18.9)/bbl
• Cash flow before financing activities was EUR 504 (475) million
• Comparable earnings per share were EUR -0.13 (0.66)
Figures in parentheses refer to the corresponding period for 2023, unless otherwise stated. Neste’s revenue in the fourth quarter totaled EUR 5,568 (6,303) million. Revenue decrease is driven by lower market and sales prices, which had a negative impact of approximately EUR -0.9 billion. Sales volumes had a small negative impact on revenue, mainly due to Oil Products while Renewable Products’ sales volumes (especially SAF) increased year-over-year. An increase in trading volumes, mainly in Oil Products, positively impacted the revenue by approximately EUR 0.2 billion.
The Group’s comparable EBITDA was EUR 168 (797) million. Renewable Products’ comparable EBITDA was EUR 13 (433) million. Lower sales margin had a negative impact of approximately EUR -0.5 billion, while sales volume and fixed costs had a small positive impact on the result. Oil Products’ comparable EBITDA was EUR 153 (330) million, mainly as a result of a lower refining market and small decrease in sales volumes. Marketing & Services’ comparable EBITDA was EUR 22 (25) million. Others’ comparable EBITDA was EUR -18 (3) million. The Group’s fixed costs were EUR 1 million higher year-over-year.
The Group’s EBITDA was EUR 143 (672) million, which was affected by inventory valuation gains totaling EUR 63 (-255) million and changes in the fair value of open commodity and currency derivatives totaling EUR -83 (128) million. Profit before income taxes was EUR -160 (407) million and net profit EUR -135 (400) million. Comparable earnings per share were EUR -0.13 (0.66) and earnings per share EUR -0.18 (0.52).
The Group’s full-year 2024 results
Neste’s full-year 2024 revenue totaled EUR 20,635 (22,926) million. Revenue decreased mainly due to lower market and sales prices, which had a negative impact of approximately EUR -1.6 billion. Renewable Products’ sales volumes increased year-over-year, but group sales volumes had a negative impact of approximately EUR -1.4 billion in revenue mainly due to the Oil Products’ major turnaround in Porvoo in Q2/2024. The increasing trading volumes, mainly in Oil Products, had a positive impact on the revenue by approximately EUR 0.7 billion. The exchange rate effect was minimal for full-year results.
The Group’s comparable EBITDA was EUR 1,252 (3,458) million. Renewable Products’ comparable EBITDA was EUR 514 (1,906) million, mostly affected by the weak market environment. The sales margin had a negative impact of EUR 1,483 million while higher sales volume impacted the result positively. Oil Products’ full-year comparable EBITDA was EUR 633 (1,434) million, affected mostly by the Porvoo major turnaround and a lower total refining margin. Marketing & Services’ comparable EBITDA was EUR 101 (118) million. Others’ comparable EBITDA was EUR -1 (-2) million. The Group’s fixed costs were EUR 1,312 (1,329) million, EUR 16 million below last year.
The Group’s EBITDA was EUR 1,005 (2,548) million, which was affected by inventory valuation losses of EUR -359 (-827) million and changes in the fair value of open commodity and currency derivatives totaling EUR 84 (-98) million. Profit before income taxes was EUR -113 (1,596) million and net profit EUR -95 (1,436) million. Comparable earnings per share were EUR 0.17 (2.88) and earnings per share EUR -0.12 (1.87). Read More
