Neste's Interim Report for January-June 2016

Neste Corporation
Interim Report
28 July 2016 at 9 am. (EET)

Neste's Interim Report for January-June 2016

Strong performance continued - high operating profit and cash flow

Second quarter in brief:

• Comparable operating profit totaled EUR 282 million (Q2/2015: EUR 78 million) 
• IFRS operating profit totaled EUR 280 million (Q2/2015: 63 million)
• Oil Products' total refining margin was USD 11.19/bbl (Q2/2015: USD 10.83/bbl)
• Renewable Products' comparable sales margin was USD 405/ton (Q2/2015: USD 210/ton)
• Cash flow before financing activities was EUR 346 million (Q2/2015: EUR 14 million)

January-June in brief:

• Comparable operating profit totaled EUR 457 million (1-6/2015: EUR 293 million) 
• IFRS operating profit totaled EUR 534 million (1-6/2015: EUR 296 million)
• Cash flow before financing activities was EUR 420 million (1-6/2015: EUR -69 million)
• Return on average capital employed (ROACE) was 19.1% over the last 12 months (2015: 16.3%)
• Leverage ratio was 25.2% at the end of June (31.12.2015: 29.4%)
• Comparable earnings per share: EUR 1.41 (1-6/2015: EUR 0.80)
• Earnings per share: EUR 1.67 (1-6/2015: EUR 0.87)

President & CEO Matti Lievonen:

"Neste's strong performance continued as we were able to improve our result by successful own actions, which were reflected in high additional margins. The reference margin in Oil Products was below last year's level, but almost at par in Renewable Products. Neste recorded a comparable operating profit of EUR 282 million during the second quarter, compared to EUR 78 million last year, which was impacted by a scheduled major turnaround at the Porvoo refinery.

Oil Products generated a comparable operating profit of EUR 149 million (EUR 14 million) during the second quarter. Reference margin averaged USD 5.6/bbl, which was USD 3.1/bbl lower than in the same period last year. Although gasoline margins softened during the quarter, gasoline continued as the strongest part of the barrel. Diesel margins recovered during the quarter as refiners shifted to maximize gasoline production. Good operational performance and favorable sales structure enabled maintaining high additional margin at USD 5.6/bbl.