Neste Oil Advances by Record in Helsinki on Outlook for Earnings

Neste Oil Oyj, Finland’s only oil refiner, jumped the most on record in Helsinki after beating analysts’ profit estimates and saying the full-year earnings will “clearly” be higher.

Neste Oil rose as much as 24 percent, the biggest intraday gain since it was spun off from Fortum Oyj in 2005, to 13.45 euros. Trading volumes were four times the three-month daily average. It reported second-quarter net income of 90 million euros ($119 million) after a loss a year before and an average 58.3 million-euro estimate of 10 analysts Bloomberg surveyed.

So-called comparable operating profit, excluding inventory changes and one-time items, doubled to 88 million euros.

“The group’s full-year comparable operating profit is expected to improve clearly compared to 2012,” it said in a statement. The gain will be led by renewable fuels, which will report annual earnings of more than 120 million euros, it said.

“We have been able to improve our profitability in renewables significantly,” Chief Executive Officer Matti Lievonen said in a Bloomberg TV interview today. The company’s renewable diesel is “based on our own technology. This is not the normal biodiesel -- it’s really renewable and that’s different. There is no competition in this quality of product.”

Neste is benefiting from increased demand for biodiesel. The European Union said in 2008 that at least 10 percent of land-transport energy must come from renewable sources from 2020. That’s part of a goal to more than double the total share of renewable energy in the EU to an average of 20 percent.

Neste Oil’s renewables unit had comparable operating profit of 33 million euros, compared with a loss a year earlier.

“The demand for biofuels looks very favorable,” Lievonen said at a press conference today.

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