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Neste: Margins for Renewable Products under pressure

NESTEResearch28.07.2023, 09.15
Inderes
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Neste's Q2 results were well below our expectations and the near-term outlook in Renewable Products, which was also affected by the challenges in Singapore, brought our estimates down significantly for the rest of the year. We also scaled up our medium-term projections for the sales margin of Renewable Products in the light of the change in Sweden's blending mandate and threats to supply growth. However, we expect the segment's earnings growth to remain buoyant as production capacity increases.

Neste produces transport fuel and renewable fuels. Today, the largest operations and extraction are held in the Nordic market, where the company is active in the entire value chain, from extraction to delivery to port depots. In addition, the opportunity is given for direct sales where customers can pick up fuel at selected stations. The largest market is in the Nordic region, and the company is headquartered in Espoo, Finland.

Read more on company page

Key Estimate Figures27.07.2023

202223e24e
Revenue25,707.421,205.523,630.0
growth-%69.7 %-17.5 %11.4 %
EBIT (adj.)2,898.02,135.42,311.7
EBIT-% (adj.)11.3 %10.1 %9.8 %
EPS (adj.)3.022.352.37
Dividend1.521.101.15
Dividend %3.5 %3.5 %3.6 %
P/E (adj.)14.313.413.3
EV/EBITDA11.311.38.1

Forum discussions

https://www.argusmedia.com/en/news-and-insights/latest-market-news/2892000-co-processing-saf-faces-technical-cost-policy-hurdles The article...
yesterday
by Sinuhe
10
Does the article say whether diesel (and kerosene) is also coming out of there like before?
yesterday
by Sinuhe
6
FPRI researcher RALee85 cites a Bloomberg article (paywall) on X regarding the situation of Russian refineries following the Ukrainian attacks...
10/24/2026, 11:58 AM
16
Neste’s most significant European competitor, Eni, released its results today. The Bio segment’s EBITDA rose by 30% from the previous quarter...
10/23/2026, 1:37 PM
by Homeros
50
Pete is kicking off the pre-party in the form of a preview report for Neste’s Q3 results, which will be published next week on Thursday Earnings...
10/21/2026, 9:09 PM
by Sijoittaja-alokas
22
VARA’s consensus target price rose to 37 euros. vara-services.com/neste/
10/20/2026, 7:53 AM
by bottom-ditching
20
Some sort of correction has occurred as the HVO vs. diesel price spread is now narrowing closer to $1,000 per tonne, after hovering around a...
10/19/2026, 11:05 AM
6