Stock Exchange Release
Neste Oil Corporation
29 July 2010 at 9 am (EET)
Neste Oil’s interim report for January – June 2010
- Major turnaround at Porvoo resulted in a second-quarter comparable operating profit of EUR 5 million (Q2/2009: 47 million)
Second quarter in brief:
• Comparable operating profit declined to EUR 5 million (Q2/2009: 47 million) due to a scheduled six-week maintenance turnaround at the Porvoo refinery
• IFRS operating profit of EUR -63 million (Q2/2009: 118 million), impacted by a EUR 58 million capital loss resulting from the dismantling of the Neste Oil Pension Fund
• Total refining margin of USD 7.35/bbl (Q2/2009: 7.87)
• Net cash from operations of EUR 243 million (Q2/2009: 223 million)
• Investments totaled EUR 374 million (Q2/2009: 210 million)
President & CEO Matti Lievonen:
“We carried out the largest turnaround in our history at the Porvoo refinery during April and May. It naturally had a negative impact on our profitability during the second quarter. Looking ahead, I’m confident that the turnaround will secure smooth runs for Porvoo for the next five years.
Our refining margin looks likely to increase from current levels towards the end of the year, as the turnaround has been completed and economic growth is expected to continue, having a positive impact on demand for diesel in particular. This will benefit our Oil Products business, which is likely to have a stronger second half. The high level of inventories in many markets will limit the extent of this benefit, however.
Our capital projects in Singapore and Rotterdam are proceeding according to plan, and we expect the new Singapore renewable diesel plant to start production in the fourth quarter. We are excited to bring more of this high-quality renewable diesel to market, particularly as many of our employees, including myself, have been using 100% NExBTL renewable diesel in their cars since the early summer and have experienced the low emissions, high performance, and other excellent properties this fuel offers first hand.”
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 second quarter results will be held today, 29 July 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 July 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 1946718. 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 1946718#.
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