Neste Oil Corporation
Stock Exchange Release
29 August 2014 at 9 a.m. (EET)
Neste Oil expects to complete repairs on the damaged hydrogen unit at Porvoo by the end of October; guidance for 2014 revised
Neste Oil expects that repair work on the damaged hydrogen production unit at its Porvoo refinery will take until the end of October to be completed. The damage to the unit, one of two at the site, has resulted in reduced output and required the shutdown of Production Line 4, which produces diesel. The incident is projected to have an impact totaling approximately EUR 60 million on the company's comparable operating profit for 2014, comprising approx. EUR 50 million in lost output and approx. EUR 10 million in repair costs.
The Oil Products reference refining margin has been higher than expected so far during the third quarter, and market prospects for the next few months in particular have improved. This is expected to compensate the impact that the damaged hydrogen unit will have on the company's result by some EUR 30 million.
Neste Oil now expects its comparable operating profit for 2014 to come in at under EUR 400 million. The company previously forecast a comparable operating profit for 2014 of EUR 450 million +/- 10% and stated in early August that the figure was likely to be closer to the lower end of the guidance range.
Neste Oil reported the damage to the hydrogen unit on 18 August 2014.
Neste Oil Corporation
Senior Vice President, Communications and Marketing
Matti Lehmus, Executive Vice President, Oil Products, tel. + 358 (0) 10 458 4072
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. Neste Oil had net sales of EUR 17.5 billion in 2013 and employs around 5,000 people, and is listed on NASDAQ OMX Helsinki.
Neste Oil is included in the Dow Jones Sustainability World Index, and has featured in The Global 100 list of the world's most sustainable corporations for many years. Forest Footprint Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil & gas sector. Further information: www.nesteoil.com/