Neste Oil's Interim Report for January-March 2015

Neste Oil Corporation
Interim Report
24 April 2015 at 9 am. (EET)

Neste Oil's Interim Report for January-March 2015

Excellent start for the year as a result of strong refining market and good internal performance

First quarter in brief:

·Comparable operating profit totaled EUR 215 million (Q1/2014: EUR 50 million)
·Total refining margin was USD 11.66/bbl (Q1/2014: USD 8.44/bbl)
· Renewable Products' comparable sales margin was USD 205/ton (Q1/2014: USD 182/ton)
· Net cash from operations totaled EUR -185 million (Q1/2014: EUR -178 million)
· Return on average capital employed (ROACE) was 12.6% (2014: 10.1%)
· Full-year 2015 guidance revised upwards on 21 April

President & CEO Matti Lievonen:

"The year has started positively in a very favorable refining margin environment. We are also pleased with the internal performance in all our business areas. Neste Oil recorded a strong comparable operating profit of EUR 215 million during the first quarter, compared to the EUR 50 million during the corresponding period last year.

Oil Products generated a high comparable operating profit of EUR 156 million, compared to EUR 32 million in the first quarter of 2014. Neste Oil's reference margin strengthened during the first quarter, and averaged USD 7.5/bbl. Reference margin ended USD 4.1/bbl higher than in the corresponding period last year. Gasoline margins were particularly strong, supported by weak crude oil market, good demand, contango storage building, strikes and refinery outages in the US. Our Porvoo refinery operated at a high utilization rate, and preparations for the major turnaround proceeded according to plan.

Renewable Products recorded a comparable operating profit of EUR 42 million, compared to EUR 12 million in the first quarter of 2014. Renewable Products' reference margin remained clearly below the levels seen during the corresponding period last year. We were able to maintain our additional margin at a good level by successful margin management and feedstock flexibility. Weaker euro also had a positive effect on our result. Our sales volume increased by 5% from the first quarter of 2014. After successful debottlenecking in 2014, we have increased our renewable diesel nameplate production capacity from 2.0 million to 2.4 million tons per year, which has also lead to lower production costs.