How to calculate Renewable Products margin

Reference margin 70% of sales volume (EU) x (FAME-CPO)* + 30% of sales volume (North America) x (SME-CPO + LCFS x 2)*
+ Additional margin** Updated after each quarter
- Variable production costs*** Guidance, USD 110/ton
- Fixed costs Guidance, approx. MEUR 125/year
- Depreciations Quarterly reports, approx. MEUR 110/year
= EBIT estimate  

 

*FAME RED Seasonal = FAME 0 RED (April – September) / FAME -10 RED (October – March)
CPO = Crude Palm Oil Bursa Malaysia 3rd month + USD 70/ton freight to NWE
SME = Gulf Coast SME 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.

*** Guidance on variable production costs was updated from USD 130/t to USD 110/t in Q1/2017.

 

Renewable Products' EBIT calculation in 2016

  Q1/16 Q2/16 Q3/16 Q4/16 2016
Sales volume, kton 531 485 544 662 2,222
Reference margin, USD/ ton 149 168 209 278 207
Reference margin new, USD/ton 224 232 260 338 268
Additional margin, USD/ ton 270 366 296 187 272
Additional margin new, USD/ton 194 303 245 127 210
Variable production costs, USD/ ton 130 130 130 130 130
Comparable sales margin, USD/ ton 288 405 375 335 348
Comparable sales margin, MEUR 139 174 183 206 701
Fixed costs, MEUR 35 28 33 34 129
Depreciations, MEUR 24 29 26 31 110
Comparable EBIT, MEUR 80 119 124 146 469