Neste Oil's Financial Statements for 2014

Neste Oil Corporation
Financial Statements Release
4 February 2015 at 9.00 a.m. (EET)


Neste Oil's Financial Statements for 2014


Strong full-year comparable operating profit as a result of a record fourth quarter

2014 in brief:

• Comparable operating profit totaled EUR 583 million (2013: EUR 596 million)
• Total refining margin was USD 9.83/bbl (2013: USD 9.60/bbl)
• Renewable Products' comparable sales margin was USD 278/ton (2013: USD 328/ton)
• Net cash from operations totaled EUR 248 million (2013: EUR 839 million)
• Return on average capital employed (ROACE) was 10.1% (2013: 11.7%)
• Leverage ratio was 37.9% as of the end of December (31.12.2013: 30.0%)
• Comparable earnings per share was EUR 1.60 (2013: EUR 1.89)
• The Board of Directors will propose a dividend of EUR 0.65 per share (2013: 0.65), totaling
  EUR 166 million (2013: EUR 167 million).

       
Fourth quarter in brief:

• Comparable operating profit totaled EUR 254 million (Q4/2013: EUR 163 million)
• Total refining margin was USD 11.43/bbl (Q4/2013: USD 9.53/bbl)
• Renewable Products' comparable operating profit was EUR 141 million (Q4/2013: EUR 94 million), including EUR 89 million from US Blender's Tax Credit 2014
• Net cash from operations was EUR 351 million (Q4/2013: EUR 629 million)

President & CEO Matti Lievonen:

"Neste Oil generated a strong comparable result in 2014 despite of the market volatility and operational incidents at the Porvoo refinery. The 50% decline in crude oil price during the second half of the year caused significant inventory valuation losses, and impacted our cash flow. However, we were able to improve our internal performance by lowering costs, which resulted in more than EUR 50 million improvement, as promised in April. We achieved a full-year comparable operating profit of EUR 583 million (596 million) in 2014.

Oil Products' reference refining margin was volatile, but strengthened against expectations during the second half of the year, and averaged USD 4.7/bbl in 2014. European demand for petroleum products remained soft, and additional refining capacity was brought on-line in the Middle East and Asia. Also diesel imports from the US to Europe grew especially during the summer. Productivity at the Porvoo refinery was negatively impacted by an unscheduled production outage in production line 4 in the spring and a damaged hydrogen unit in August. Supported by various improvement actions, Oil Products segment recorded a comparable operating profit of EUR 285 million compared to EUR 275 million in 2013.