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Neste Oil Oyj : Neste Oil's Interim Report for January-March 2013



      Neste Oil Oyj : Neste Oil's Interim Report for January-March 2013

Neste Oil Corporation
Stock Exchange Release
24 April 2013 at 9 a.m. (EET)

Neste Oil's Interim Report for January-March 2013

· Strong first-quarter comparable operating profit of EUR 135 million
(Q1/2012: EUR 79 million)
· Renewable Fuels recorded a clearly positive comparable operating profit of
EUR 26 million (Q1/2012: EUR -2 million)
First quarter in brief:
· Comparable operating profit was EUR 135 million (Q1/2012: EUR 79 million)
· IFRS operating profit was EUR 86 million (Q1/2012: EUR 191 million)
· Total refining margin was USD 11.54/bbl (Q1/2012: USD 8.95/bbl)
· Net cash from operations was EUR -105 million (Q1/2012: EUR -353 million)
· Investments totaled EUR 34 million (Q1/2012: EUR 48 million)
· Leverage ratio was 44.0% (Q1/2012: 49.4%)

President & CEO Matti Lievonen:
"Neste Oil had a good start to the year and recorded a strong result during
the first quarter. The Group's comparable operating profit was EUR 135
million.

Oil Products had a solid first quarter, thanks to reasonably high refining
margins and good operational performance. Refining margins were driven by
strong diesel margins; unseasonably high gasoline margins also made a
contribution, especially in February and March. Overall, we are pleased with
Oil Products' first-quarter comparable operating profit of EUR 111 million.

Renewable Fuels made very good progress and for the first time recorded a
clearly positive comparable operating profit of EUR 26 million. We were able
to expand our customer base further and sales allocations were also
successful. Price differentials between different vegetable oils remained
favorable during the quarter.

Despite ongoing economic uncertainties, which have been reflected in the oil
and renewable fuel markets, our guidance remains unchanged. We expect the
Group's full-year comparable operating profit and that of Renewable Fuels to
improve from the levels seen in 2012, and be positive at Renewable Fuels."

The Group's first-quarter 2013 results
Neste Oil's revenue totaled EUR 4,258 million in the first quarter compared to
EUR 4,454 million during the same period in 2012. This decrease resulted
mainly from lower average crude oil prices. The Group's comparable operating
profit came in at EUR 135 million. Comparable operating profit for the
corresponding period in 2012 was EUR 79 million. Oil Products' result was
positively impacted by higher refining margins and good productivity.
Renewable Fuels recorded a clearly positive comparable operating profit for
the first time. Both Oil Retail and the Others segment posted a slightly lower
result than in the first quarter of 2012.

Oil Products' first-quarter comparable operating profit was EUR 111 million
(77 million), Renewable Fuels' EUR 26 million (-2 million), and Oil Retail's
EUR 11 million (15 million). The comparable operating profit of the Others
segment totaled EUR -12 million (-7 million); associated companies and joint
ventures accounted for EUR -6 million (-6 million) of this figure.

The Group's IFRS operating profit was EUR 86 million (191 million), which was
impacted by inventory losses totaling EUR 35 million (gains of 64 million) and
changes in the fair value of open oil derivatives totaling EUR -14 million (3
million). It should also be noted that the result during the corresponding
period last year was positively impacted by a one-time capital gain of EUR 45
million. Pre-tax profit was EUR 65 million (169 million), profit for the
period EUR 47 million (123 million), and earnings per share EUR 0.18 (0.48).

Given the capital-intensive nature of its business, Neste Oil uses return on
average capital employed after tax (ROACE) as its primary financial target.
ROACE figures are based on comparable results. As of the end of March, the
rolling twelve-month ROACE was 5.9% (2012 financial year: 5.0%).

Outlook
Uncertainties in the global economy have been reflected in the oil, renewable
fuel, and renewable feedstock markets, and this volatility is expected to
continue. Global oil demand is generally forecasted to grow moderately in
2013, but new refining capacity is likely to put pressure on simple
refineries. Complex refiners such as Neste Oil are expected to remain the most
competitive. Diesel is projected to be the strongest part of the barrel going
forward, and gasoline margins are expected to develop seasonally. The base oil
market is likely to remain under pressure, due to sluggish demand in the
automotive industry. Vegetable oil price differentials are currently wider
than the historical average, and depend on crop outlooks, weather phenomena,
and variations in demand for different types of feedstock. Oil retail markets
are expected to remain competitive.

Diesel production line 4 at the Porvoo refinery is currently being shut down
for maintenance for up to eight weeks. The shutdown will include a four-week
regulatory pressure vessel inspection. Gasoline production at the Porvoo
refinery was reduced by a three-week unplanned maintenance outage in April.

In Renewable Fuels, the focus will continue to be on sales, feedstock, and
production optimization. The segment's full-year comparable operating profit
is expected to improve from that seen in 2012 and be positive.

The Group's full-year comparable operating profit is expected to improve
compared to 2012, assuming that Neste Oil's reference refining margin remains
at the average level of approx. USD 5/bbl typical of the last few years and
that Renewable Fuels' result develops as expected.

Further information:
Matti Lievonen, President & CEO, tel. +358 10 458 11
Matti Piri, Acting CFO, tel. +358 10 458 4960
Investor Relations, tel. +358 10 458 5292

News conference and conference call
A press conference in Finnish on the first-quarter results will be held today,
24 April 2013, at 11:30 a.m. EET at the company's headquarters at Keilaranta
21, Espoo. www.nesteoil.com will feature English versions of the presentation
materials. A conference call in English for investors and analysts will be
held on 24 April 2013 at 3 p.m. Finland / 1 p.m. London / 8 a.m. New York. The
call-in numbers are as follows: Finland: +358 (0) 9 2310 1543, Europe: +44 (0)
20 7136 2056, US: +1 646 254 3360, using access code 9388642. The conference
call can be followed at the company's web site. An instant replay of the call
will be available until 1 May 2013 at +358 (0) 9 2310 1650 for Finland at +44
(0) 20 3427 0598 for Europe and +1 347 366 9565 for the US, using access code
9388642#.

 

Neste Oil's Interim Report Q1 2013

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This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Neste Oil Oyj via Thomson Reuters ONE
HUG#1695636
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