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

  Q3/17 Q4/17 2017 Q1/18 Q2/18 Q3/18
Sales volume, kton 637 713 2,567 550 589 547
Reference margin USD/ton 290 321 291 251 317 380
Additional margin, USD/ton 256 254 184 384 300 374
Variable production costs, USD/ ton 110 110 110 110 110 110
Comparable sales margin, USD/ ton 435 464 365 525 508 645
Comparable sales margin, MEUR 236 281 828 374 251 303
Fixed costs, MEUR 39 44 159 51 46 41
Depreciations, MEUR 27 28 110 28 32 34
Comparable EBIT, MEUR 171 209 561 296 177 228