NESTE OIL TO CHANGE ITS SEGMENT REPORTING AS OF 1 JANUARY 2008
Neste Oil will change its segment reporting as of 1 January 2008, and report on the performance of all five of its divisions separately from then on. The company has consisted of Oil Refining, Biodiesel, Specialty Products, Oil Retail, and Shipping since 16 October 2007. The operations of Research and Technology and Neste Jacobs will be reported under Other, which includes Group administration and shared services functions, as part of the new reporting structure.
Biodiesel is responsible for Neste Oil's proprietary second-generation NExBTL Renewable Diesel. The first plant producing NExBTL was completed earlier this year at Porvoo, and a second one is under construction alongside the first. Neste Oil has set itself the target of becoming the world's leading producer of renewable diesel.
Specialty Products, previously part of Oil Refining, is responsible for the production and sale of base oils and gasoline components, and for Neste Oil's stake in Nynäs Petroleum, a specialist producer of bitumen and naphthenic specialty oils. Specialty Products is an established business with annual sales ranging between EUR 500 million and 700 million and net assets of around 400 million euros. Specialty Products currently clearly exceeds the Group's profitability target of 15% return on average capital employed after tax.
Neste Oil Corporation is a refining and marketing company, with a focus on advanced, clean traffic fuels and a strategy aimed at growing the company's oil refining operations and premium-quality renewable diesel production. Neste Oil's refineries are located in Porvoo and Naantali in Finland, and have a total refining capacity of approx. 250,000 bbl/d. The company employs around 4,700 people. Neste Oil is listed on the Helsinki Stock Exchange (symbol: NES1V). For further information, see www.nesteoil.com.