Neste's Interim Report for January-March 2017 - Seite 3

Oil Products' first-quarter comparable operating profit was EUR 126 million (86 million), Renewable Products' EUR 80 million (80 million), and Marketing & Services' EUR 11 million (22 million). The comparable operating profit of the Others segment totaled EUR -17 million (-11 million); Nynas accounted for EUR -7 million (0 million) of this figure.

The Group's IFRS operating profit was EUR 271 million (254 million), which was impacted by inventory gains of EUR 42 million (48 million), and changes in the fair value of open commodity and currency derivatives were EUR 24 million (23 million). Profit before income taxes was EUR 236 million (229 million), and net profit EUR 201 million (214 million). Comparable earnings per share were EUR 0.56 (0.57), and earnings per share EUR 0.78 (0.83).

Outlook

Developments in the global economy have been reflected in the oil, renewable fuel, and renewable feedstock markets; and volatility in these markets is expected to continue.

Crude oil supply and demand are expected to become more balanced, which could end the growth trend in crude oil inventories. Global oil demand growth estimates for 2017 by recognized experts currently vary between 1.2 and 1.6 million bbl/d. In light of the expected refining capacity growth the global product supply and demand look relatively balanced.

Vegetable oil price differentials are expected to vary, depending on crop outlooks, weather phenomena, and variations in demand for different feedstocks. Market volatility in feedstock prices is expected to continue, which will have an impact on the Renewable Products segment's profitability.

Neste expects Oil Products' reference refining margin to be on average similar to that in 2016. Our Porvoo refinery is expected to run at a high utilization rate and to have normal planned unit maintenance, including a decoking maintenance at the Production Line 4 in the autumn. The new SDA unit is currently being started up. A major two-month turnaround at the Naantali unit is scheduled for the third quarter. We are targeting at least USD 5.5/bbl additional margin when the ongoing strategic investments in the Porvoo SDA unit and Naantali reconfiguration are completed.