Neste reports profit declined in 2020

Finland's Neste Oil Corporation on Friday reported a decline in 2020 profits, noting the resilience of the renewable fuel market while the traditional oil market suffered setbacks, reported Xinhua.

The company's comparable operating profit declined in 2020 to 1,416 million euros from 1,962 million euros in 2019. Its comparable operating profit in the fourth quarter (Q4) totaled 380 million euros, down from 781 million euros in the previous year.

Renewable products posted a solid full-year comparable operating profit of 1,334 million euros, though less than the 1,599 million euros in 2019, according to the company.

Peter Vanacker, president and chief executive officer (CEO) of Neste noted in a media release that while oil products suffered from a historically weak refining market caused by the global decline, renewable fuels showed increased sales volumes and strong sales margins. Renewable diesel demand remained good during the COVID-19 pandemic, but its feedstock cost increased.

Neste is considering a new biorefinery either in Rotterdam, the Netherlands or in Porvoo, Finland. The location will be decided this spring. Vanacker said no investment decision has been taken yet, but the project is comparable to the company's biorefinery in Singapore.

A Finnish language business daily Kauppalehti said the new plant's annual production volume would be 1.3 million tons.

Neste said the launch of the Singapore renewables expansion had to be delayed until 2023, due to local restrictions in Singapore related to the COVID-19 pandemic.

Neste's Singapore refinery started its operations in 2010. It produces exclusively renewable products. Currently, Neste's Singapore Refinery has a production capacity of 1.3 million tons annually, mainly serving customers in Europe and North America.

Neste is an oil refining and marketing company located in Espoo, southern Finland. It has operations in 14 countries.