Neste's Interim Report for January-June 2015

Neste Corporation
Interim Report
5 August 2015 at 9 am. (EET)

Neste's Interim Report for January-June 2015

Continuing strong refining market enabled good result despite the scheduled major turnaround at the Porvoo refinery

Second quarter in brief:

• Comparable operating profit totaled EUR 78 million (Q2/2014: EUR 86 million)
• Negative impact of the Porvoo refinery turnaround on comparable operating profit was EUR 130 million
• Total refining margin was USD 10.83/bbl (Q2/2014: USD 8.33/bbl)
• Renewable Products' comparable sales margin was USD 210/ton (Q2/2014: USD 200/ton)
• Net cash from operations totaled EUR 227 million (Q2/2014: EUR 219 million)

January-June in brief:

• Comparable operating profit totaled EUR 293 million (1-6/2014: EUR 136 million)
• Return on average capital employed (ROACE) was 12.5% over the last 12 months (2014: 10.1%)
• Leverage ratio was 40.3% as of the end of June (31.12.2014: 37.9%)
• Comparable earnings per share: EUR 0.80 (1-6/2014: EUR 0.30)

President & CEO Matti Lievonen:

"The second quarter was characterized by a strong refining margin environment, and the major turnaround at our Porvoo refinery. Neste recorded a comparable operating profit of EUR 78 million during the second quarter, compared to the EUR 86 million during the corresponding period last year. As announced on 16 June, the turnaround had a negative impact of approximately EUR 130 million on comparable operating profit.

Oil Products generated a comparable operating profit of EUR 14 million (EUR 33 million) during the second quarter. Neste's reference margin averaged USD 8.7/bbl, which was more than double that in the same period last year. Gasoline margins continued particularly high, supported by global demand growth and the summer driving season. The maintenance turnaround implemented during the second quarter was the largest in the history of the Porvoo refinery. It has now been successfully completed and will help ensure the refinery's performance and safety for the next five years.