Neste Oil's Interim Report for January-March 2014 - Seite 2

Oil Retail continued its solid performance, with good margins in all markets. The segment generated a comparable operating profit of EUR 15 million, an improvement of EUR 4 million on the EUR 11 million booked in the first quarter of 2013.

First-quarter refining margins and renewable fuels margins were softer than previously expected. We have revised our guidance and now expect the Group's full-year comparable operating profit to be EUR 450 million +/- 10% in 2014. Previously the full-year operating profit was expected to be at the level of EUR 500 million. Neste Oil's reference refining margin is assumed to average USD 4.0/bbl during the year compared to the previous estimate of USD 4.5/bbl. We will also continue our performance improvement actions to defend good profitability in 2014."

The Group's first-quarter 2014 results

Neste Oil's revenue in the first quarter totaled EUR 3,654 million (EUR 4,258 million). This decline resulted from lower sales in Oil Products due to a planned maintenance outage on production line 4 at Porvoo, and the sale of the retail business in Poland. The Group's comparable operating profit came in at EUR 55 million. Comparable operating profit for the corresponding period in 2013 was EUR 135 million. Oil Products' result was negatively impacted by reference refining margins, which were clearly lower than in the first quarter of 2013, as well as the planned maintenance outage at Porvoo. Renewable Fuels' result was lower due to markedly less favorable markets, particularly in the US, and higher palm oil prices. Oil Retail's performance continued to be strong and was better than that during the corresponding period in 2013. Oil Retail's result was positively impacted by lower fixed costs due to the disposal of non-core businesses in Poland and Sweden. The Others segment posted a slightly smaller loss than in the first quarter of 2013.

Oil Products' first-quarter comparable operating profit was EUR 33 million (111 million), Renewable Fuels' EUR 15 million (26 million), and Oil Retail's EUR 15 million (11 million). The comparable operating profit of the Others segment totaled EUR -10 million (-12 million).

The Group's IFRS operating profit was EUR 55 million (86 million), which was impacted by inventory gains totaling EUR 3 million (losses of 35 million) and changes in the fair value of open oil derivatives totaling EUR -5 million (-14 million). Pre-tax profit was EUR 38 million (65 million), profit for the period EUR 31 million (47 million), and earnings per share EUR 0.12 (0.18).