Stock Exchange Release
Neste Oil Corporation
29 of April 2010 at 9.00 am EET
Neste Oil's Interim Report for January – March 2010
- Comparable operating profit of EUR 88 million (Q1/2009: 56 million), including an insurance compensation
payment of EUR 47 million
First quarter in brief:
- Comparable operating profit of EUR 88 million (Q1/2009: 56 million), including a EUR 47 million in the form of non-recurring insurance compensation received for a fire at the Porvoo refinery in April 2008
- IFRS operating profit of EUR 97 million (Q1/2009: 95 million)
- Total refining margin of USD 7.83/bbl (Q1/2009: 9.44)
- Net cash from operations was strong at EUR 374 million (Q1/2009: 17 million)
- Investments totaled EUR 190 million (Q1/2009: 174 million)
- Major six-week maintenance shutdown began at the Porvoo refinery at the end of March
President & CEO Matti Lievonen:
“The rapid improvement in refining margins seen in February and March, compared to the end of 2009, was a positive surprise to us, and the benefits can be seen in our operating profit and cash flow for the first quarter. Margins have declined somewhat from the highs seen in March, as the industry’s peak maintenance period has now passed. Due to high inventory levels, coupled with new refining capacity coming on stream, we expect the recovery of refining margins to be a gradual one. Complex refiners, such as Neste Oil, look set to benefit from wider heavy-light crude price differentials on the back of higher oil prices and increasing supply.
The on-going maintenance turnaround at our Porvoo refinery, the most extensive one in the site’s history, has progressed on schedule, and I’m confident that the refinery will be back in production in mid-May as planned. The next important milestone for us will be achieving the mechanical completion of our new renewable diesel plant in Singapore this summer and starting production there in the fourth quarter. Our good progress to date means that we are well set to deliver on our promises throughout 2010.”
Further information:
Matti Lievonen, President & CEO, tel. +358 10 458 11
Ilkka Salonen, CFO, tel. +358 10 458 4490
Investor Relations, tel. +358 10 458 5132
News conference and conference call
A press conference in Finnish on the first quarter results will be held today, 29 April 2010, at 11:30 am EET at the company’s headquarters, 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 29 April 2010 at 3:00 pm Finland / 1:00 pm London / 8:00 am New York. The call-in numbers are as follows: Europe: +44 (0)20 3140 8286, US: +1 718 354 1152, using access code 1670348. The conference call can be followed at company’s website. An instant replay of the call will be available for one week at +44 (0)20 7111 1244 for Europe and +1 347 366 9565 for the US, using access code 1670348. |
