Investors

How to calculate Renewable Products margin

Reference margin

70% (Europe's share of sales volume) x (FAME-CPO)* +

30% (North America's share of sales volume) x (SME-CPO + LCFS x 2)*

+ Additional margin** Updated after each quarter
- Variable production costs Guidance, USD 110/ton
- Fixed costs Quarterly reports, approx. MEUR 160/year
- Depreciations Quarterly reports, approx. MEUR 120/year
= EBIT estimate  

 

*FAME = Fatty Acid Methyl Ester biodiesel RED seasonal 

CPO = Crude Palm Oil Bursa Malaysia 3rd month + USD 70/ton freight to ARA (Amsterdam-Rotterdam-Antwerp)
SME = US Gulf Coast Soy Methyl Ester biodiesel mid-price
LCFS = California Low Carbon Fuel Standard Credit price

 ** Additional margin includes other result drivers such as product density escalation and energy content as pricing elements, quality premium, side-product revenue, hedging, maintenance shutdowns, logistics costs, and actual feedstock mix.

 

 

Renewable Products' EBIT calculation

  Q1/17 Q2/17 Q3/17 Q4/17 2017
Sales volume, kton 543 674 637 713 2,567
Reference margin USD/ton 271 278 290 321 291
Additional margin, USD/ton 125 101 256 254 184
Variable production costs, USD/ ton 110 110 110 110 110
Comparable sales margin, USD/ ton 286 270 435 464 365
Comparable sales margin, MEUR 146 165 236 281 828
Fixed costs, MEUR 40 37 39 44 159
Depreciations, MEUR 26 28 27 28 110
Comparable EBIT, MEUR 80 101 171 209 561