Neste Oil holds Capital Markets Day in Porvoo and Helsinki - corporate strategy and financial targets remain unchanged, new information on cost structure and NExBTL renewable diesel profitability
Neste Oil is hosting a Capital Markets Day today, September 29, in Porvoo and Helsinki. Participants will be given an overview of the company's operations, prospects, and capital projects. A tour of the Porvoo refinery in the morning will cover areas such as R&D, refinery operations, and refining prospects. Production Line 4, Porvoo's new diesel unit, is now operating normally following the completion, slightly ahead of schedule, of repairs after a fire at the beginning of August.
The afternoon program will cover topical issues such as the profitability of Neste Oil's key growth business, renewable fuels, and the company's cost structure and capital investments.
The main message of the Capital Markets Day is that Neste Oil remains fully committed to its clean traffic fuel strategy. Its financial targets also remain unchanged: a ROACE of at least 15% annually, a leverage ratio of 25-50%, and dividend policy, which calls for a payout equivalent to at least a third of comparable net profit.
Renewable fuels
Neste Oil is continuing to move ahead with its two largest capital projects, in Singapore and Rotterdam. The company presents its profitability model for NExBTL renewable diesel, which is based on annual average costs of the two plants at Porvoo and those in Singapore and Rotterdam when all are operational and running normally. Using these cost assumptions and actual end-product and raw material prices, the margin on NExBTL renewable diesel after fixed costs would have been approximately USD 225/t for the twelve months from July 2008 to June 2009.
Investments
The company expects its investments to account for around EUR 890 million of expenditure this year and around EUR 920 million in 2010. The figure for 2010 includes a scheduled major maintenance turnaround at the Porvoo refinery. Investment expenditure is expected to be some EUR 350 million in 2011.
Costs
Neste Oil projects that its fixed costs will be approx. EUR 630 million in 2009. Fixed costs in 2008 totaled EUR 679 million, of which Oil Products accounted for EUR 417 million, Renewable Fuels EUR 38 million, Oil Retail EUR 135 million, and Others EUR 89 million.
Capital Markets Day presentations also covered production costs at the company's refineries. These totaled EUR 445 million, or USD 5.9/bbl, in 2008. Costs during the first quarter of 2009 were EUR 84 million or USD 4.1/bbl, and EUR 105 million or USD 5.5/bbl during the second quarter.
All presentation material in English will be available at www.nesteoil.com at around 9.00 am EET.
People not present at the event will be able to follow the afternoon program from 1.00 pm EET by logging on to http://qsb.webcast.fi/n/nesteoil/nesteoil_2009_0929_cmd/.
Neste Oil Corporation
Hanna Maula
Director, Corporation Communications
Director, Corporation Communications
Further information: Juha Rouhiainen, Director, Investor Relations, tel. +358 (0)50 458 5132
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company is the world's leading supplier of renewable diesel. Neste Oil's refineries are located in Porvoo and Naantali in Finland and have a combined crude oil refining capacity of approx. 260,000 bbl/d. The company had net sales of EUR 15 billion in 2008 and employs around 5,300 people. Neste Oil's share is listed on NASDAQ OMX Helsinki.
Neste Oil is included in the Dow Jones Sustainability World Index and the Ethibel Pioneer Investment Register. The company has also been awarded 'Best in Class' recognition for its social accountability by Storebrand and is included in Innovest's Global 100 list of the world's most sustainable corporations. For further information, see www.nesteoil.com.
Neste Oil is included in the Dow Jones Sustainability World Index and the Ethibel Pioneer Investment Register. The company has also been awarded 'Best in Class' recognition for its social accountability by Storebrand and is included in Innovest's Global 100 list of the world's most sustainable corporations. For further information, see www.nesteoil.com.