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Neste Oyj Earnings Release 2024
3230_rns_2025-02-13_1da37573-aaee-4834-a216-6f772184472c.pdf
Earnings Release
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Neste Corporation
Financial statements release
2024
13 February 2025
NESTE
NESTE
Neste's Financial statements release for 2024
Actions initiated to respond to a challenging market environment and weak financial performance
Year 2024 in brief:
- Comparable EBITDA totaled EUR 1,252 (3,458) million
- EBITDA totaled EUR 1,005 (2,548) million
- Renewable Products' sales 3,729 (3,382) kton
- Oil Products' sales 10,147 (11,885) kton
- Cash flow before financing activities totaled EUR -313 (751) million
- Comparable return on average capital employed (comparable ROACE) was 2.5% (23.9%)
- Leverage ratio was 36.1% at the end of December (31 Dec 2023: 22.7%)
- Comparable earnings per share were EUR 0.17 (2.88)
- Earnings per share: -0.12 EUR (1.87)
- Board of Directors will propose a dividend of EUR 0.20 per share (1.20), totaling EUR 154 (922) million
Fourth quarter in brief:
- Comparable EBITDA totaled EUR 168 (797) million
- EBITDA totaled EUR 143 (672) million
- Renewable Products' comparable sales margin was USD 242 (813)/ton
- Oil Products' total refining margin was USD 11.8 (18.9)/bbl
- Cash flow before financing activities was EUR 504 (475) million
- Comparable earnings per share were EUR -0.13 (0.66)
Figures in parentheses refer to the corresponding period for 2023, unless otherwise stated.
President and CEO Heikki Malinen:
"The year 2024 was marked by geopolitical, economic and regulatory uncertainty. For Neste, the year was particularly challenging. We faced significant changes in the markets of both Renewable Products and Oil Products and several operational challenges at our refineries. Our 2024 full-year comparable EBITDA totaled EUR 1,252 (3,458) million. This level is not satisfactory, nor sustainable.
In Renewable Products, numerous new competitors and increased capacity entered the markets during 2024. While there are regional differences, this global overcapacity resulted in a decline in renewable fuel sales prices and intensified demand for waste and residue raw materials. In addition, the weakening fossil diesel price had a further negative impact on the Renewable Products' sales prices. Consequently, sales margins fell significantly below previous years' levels. Our full-year comparable sales margin was USD 377 (863)/ton and segment's comparable EBITDA EUR 514 (1,906) million. Our sales volume in Renewable Products was 3.7 (3.4) million tons, increasing in the second half of the year, but falling below the level we had planned in the beginning of the year. The share of waste and residue feedstocks remained high throughout the year and averaged 90% (92%) of our total renewable material inputs in 2024.
As we have communicated, our renewable refineries faced operational challenges in 2024. We have tackled these, but they had a negative impact on renewable diesel production and sales especially in the fourth quarter.
Neste Corporation – Financial statements release for 2024
NESTE
Renewable Products posted a comparable EBITDA of EUR 13 (433) million for the quarter and our comparable sales margin was USD 242 (813)/ton. On a positive note, sustainable aviation fuel (SAF) sales increased in the final quarter of 2024.
In Oil Products, the product margins normalized from the high levels of 2023 and the full-year total refining margin decreased to USD 14.1 (21.1)/bbl. Oil Products' full-year comparable EBITDA was EUR 633 (1,434) million, which was also affected by decreased sales volumes in the second quarter due to the Porvoo major turnaround. In the fourth quarter, comparable EBITDA was EUR 153 (330) million, reflecting similarly the more normalized market compared to last year. The total refining margin averaged USD 11.8 (18.9)/bbl and the average refinery utilization rate of the Porvoo refinery was 88% (92%) in the fourth quarter.
In 2024, we progressed with our strategic growth investment project in Rotterdam. However, due to the challenging contractor market, the scheduled start of commercial operations has been delayed from 2026 to 2027. At the same time, the investment cost is estimated to increase from EUR 1.9 billion to EUR 2.5 billion. We have taken action to ensure that from now on the project proceeds on-schedule and on-budget. We maintain strict capital discipline throughout the company and in the coming few years, our capital expenditure beyond the Rotterdam investment is expected to be on an annual level of approximately EUR 0.5 billion with focus on safety and reliability investments.
In Neste's current situation, it is obvious that a change of direction is needed. Shortly after I took over as a CEO, we launched a group-wide, comprehensive full potential analysis. This work has now been completed and we have today launched a performance improvement program. The goal is to enhance Neste's financial performance while securing our strong market position with better cost competitiveness in renewable fuels. There is no single silver bullet to improve our financial and operative performance. Instead, we need to take steps on many fronts and this work has already started. The planned efficiency measures have personnel impacts and are thus especially difficult for our employees, but at the same time necessary to ensure Neste's long-term competitiveness and success.
In line with changes in our operating environment and financial performance, we have updated our financial targets for 2025-2026 to reflect the actions required to respond to this. Firstly, we are targeting EUR 350 million EBITDA run rate improvement by the end of 2026 from our performance improvement program, of which EUR 250 million from operational costs. Secondly, we are committed to maintaining our investment grade credit rating and leverage below 40%.
As we look towards the future, the fundamental need to tackle climate change is stronger than ever as 2024 was characterized by record high temperatures globally. To reduce global CO₂ emissions, readily available solutions that can also decarbonize hard to abate sectors like aviation, are needed. Neste has a leading role in this: we have an established position in renewable diesel and we are also well positioned in SAF, thanks to our world-leading renewables platform and the needed competences in, for example, technology, pretreatment and feedstocks. Going forward, we plan to focus more clearly on fuels, the products that have been at the core of our company for decades.
All in all, 2024 was a tough year in many ways from market changes to trade policy developments. I would like to thank all our employees for their resilience and contribution in these challenging circumstances. In 2025, the renewables market continues to be challenging and we cannot expect a return to previous years' exceptional margin levels. Regulation continues to create uncertainties, e.g. in the US, and we need to fight for a level playing field, e.g. in the EU versus imports from China and US (SAF). However, I am confident that with a determined approach we can and we will reverse the current trend in our financial performance while maintaining our investment grade credit rating, fund the critical investments in running projects, and ensure Neste will be successful in the future.
Neste Corporation – Financial statements release for 2024
NESTE
The Board has today proposed a dividend payout of 0.20 euros (1.20) per share for the year 2024 to the Annual General Meeting."
Outlook
Market outlook for 2025
The uncertainty in the global economic outlook and geopolitical situation is expected to cause ongoing market volatility. The market in renewable fuels is expected to be oversupplied and therefore challenging in 2025. Possible changes in the regulatory framework especially in the US and Europe will have an impact on Neste's overall supply chain optimization. Changes in trade policy, such as tariffs in different forms, can also affect Neste's competitiveness.
Guidance for 2025
- Renewable Products' sales volumes in 2025 are expected to be higher than in 2024.
- Oil Products' sales volumes in 2025 are expected to be higher than in 2024.
Additional information
- There will be two scheduled maintenance turnarounds in 2025, a 5-week turnaround in Rotterdam in Q4 2025 and a 6-week turnaround starting in mid-December 2025 in Singapore. There are no planned turnarounds in Porvoo.
- The Group's comparable total fixed costs in 2025 are expected to be below 2024 level excluding one-off costs.
- The Group's full-year 2025 cash-out capital expenditure excluding M&A is estimated to be approximately EUR 1.1 - 1.3 billion.
Neste Corporation – Financial statements release for 2024
NESTE
Neste's Financial statements release, 1 January - 31 December 2024
The Financial statements release is unaudited.
Figures in parentheses refer to the corresponding period for 2023, unless otherwise stated.
Key Figures
EUR million (unless otherwise noted)
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Revenue | 5,568 | 6,303 | 5,624 | 20,635 | 22,926 |
| EBITDA | 143 | 672 | 301 | 1,005 | 2,548 |
| Comparable EBITDA* | 168 | 797 | 293 | 1,252 | 3,458 |
| Operating profit | -110 | 415 | 54 | 25 | 1,682 |
| Profit before income taxes | -160 | 407 | 26 | -113 | 1,596 |
| Net profit | -135 | 400 | 23 | -95 | 1,436 |
| Comparable net profit | -101 | 508 | 16 | 131 | 2,216 |
| Earnings per share, EUR | -0.18 | 0.52 | 0.03 | -0.12 | 1.87 |
| Comparable earnings per share, EUR | -0.13 | 0.66 | 0.02 | 0.17 | 2.88 |
| Cash-out investments | 321 | 417 | 488 | 1,566 | 1,621 |
| Net cash generated from operating activities | 911 | 690 | 292 | 1,183 | 2,279 |
| 31 Dec 2024 | 31 Dec 2023 | ||||
| --- | --- | --- | |||
| Total equity | 7,417 | 8,463 | |||
| Interest-bearing net debt | 4,192 | 2,488 | |||
| Capital employed | 12,564 | 12,532 | |||
| Comparable return on average capital employed after tax (Comparable ROACE), % | 2.5 | 23.9 | |||
| Equity per share, EUR | 9.65 | 11.02 | |||
| Leverage ratio, % | 36.1 | 22.7 |
- Comparable EBITDA is calculated by excluding inventory valuation gains/losses, unrealized changes in the fair value of open commodity and currency derivatives, capital gains/losses, and other adjustments from the reported EBITDA.
The Group's fourth-quarter 2024 results
Neste's revenue in the fourth quarter totaled EUR 5,568 (6,303) million. Revenue decrease is driven by lower market and sales prices, which had a negative impact of approximately EUR -0.9 billion. Sales volumes had a small negative impact on revenue, mainly due to Oil Products while Renewable Products' sales volumes (especially SAF) increased year-over-year. An increase in trading volumes, mainly in Oil Products, positively impacted the revenue by approximately EUR 0.2 billion.
The Group's comparable EBITDA was EUR 168 (797) million. Renewable Products' comparable EBITDA was EUR 13 (433) million. Lower sales margin had a negative impact of approximately EUR -0.5 billion, while sales volume and fixed costs had a small positive impact on the result. Oil Products' comparable EBITDA was
Neste Corporation – Financial statements release for 2024
NESTE
EUR 153 (330) million, mainly as a result of a lower refining market and small decrease in sales volumes. Marketing & Services' comparable EBITDA was EUR 22 (25) million. Others' comparable EBITDA was EUR -18 (3) million. The Group's fixed costs were EUR 1 million higher year-over-year.
The Group's EBITDA was EUR 143 (672) million, which was affected by inventory valuation gains totaling EUR 63 (-255) million and changes in the fair value of open commodity and currency derivatives totaling EUR -83 (128) million. Profit before income taxes was EUR -160 (407) million and net profit EUR -135 (400) million. Comparable earnings per share were EUR -0.13 (0.66) and earnings per share EUR -0.18 (0.52).
The Group's full-year 2024 results
Neste's full-year 2024 revenue totaled EUR 20,635 (22,926) million. Revenue decreased mainly due to lower market and sales prices, which had a negative impact of approximately EUR -1.6 billion. Renewable Products' sales volumes increased year-over-year, but group sales volumes had a negative impact of approximately EUR -1.4 billion in revenue mainly due to the Oil Products' major turnaround in Porvoo in Q2/2024. The increasing trading volumes, mainly in Oil Products, had a positive impact on the revenue by approximately EUR 0.7 billion. The exchange rate effect was minimal for full-year results.
The Group's comparable EBITDA was EUR 1,252 (3,458) million. Renewable Products' comparable EBITDA was EUR 514 (1,906) million, mostly affected by the weak market environment. The sales margin had a negative impact of EUR 1,483 million while higher sales volume impacted the result positively. Oil Products' full-year comparable EBITDA was EUR 633 (1,434) million, affected mostly by the Porvoo major turnaround and a lower total refining margin. Marketing & Services' comparable EBITDA was EUR 101 (118) million. Others' comparable EBITDA was EUR -1 (-2) million. The Group's fixed costs were EUR 1,312 (1,329) million, EUR 16 million below last year.
The Group's EBITDA was EUR 1,005 (2,548) million, which was affected by inventory valuation losses of EUR -359 (-827) million and changes in the fair value of open commodity and currency derivatives totaling EUR 84 (-98) million. Profit before income taxes was EUR -113 (1,596) million and net profit EUR -95 (1,436) million. Comparable earnings per share were EUR 0.17 (2.88) and earnings per share EUR -0.12 (1.87).
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| COMPARABLE EBITDA | 168 | 797 | 293 | 1,252 | 3,458 |
| - inventory valuation gains/losses | 63 | -255 | -176 | -359 | -827 |
| - changes in the fair value of open commodity and currency derivatives | -83 | 128 | 141 | 84 | -98 |
| - capital gains/losses | -4 | 0 | 0 | -2 | 7 |
| - other adjustments | -2 | 3 | 43 | 29 | 8 |
| EBITDA | 143 | 672 | 301 | 1,005 | 2,548 |
Variance analysis (comparison to corresponding period), MEUR
| 10-12 | 1-12 | |
|---|---|---|
| Group's comparable EBITDA, 2023 | 797 | 3,458 |
| Sales volumes | 10 | -130 |
| Sales margin | -636 | -2,028 |
| Currency exchange | 5 | -10 |
| Fixed costs | -1 | 16 |
| Others | -7 | -54 |
| Group's comparable EBITDA, 2024 | 168 | 1,252 |
Neste Corporation – Financial statements release for 2024
NESTE
Variance analysis by segment (comparison to corresponding period), MEUR
| 10-12 | 1-12 | |
|---|---|---|
| Group's comparable EBITDA, 2023 | 797 | 3,458 |
| Renewable Products | -420 | -1,392 |
| Oil Products | -177 | -800 |
| Marketing & Services | -2 | -17 |
| Others including eliminations | -30 | 5 |
| Group's comparable EBITDA, 2024 | 168 | 1,252 |
Financial targets
Neste's key financial targets in 2024 were comparable return on average capital employed after tax (Comparable ROACE) and leverage ratio. At the end of December, Comparable ROACE calculated over the last 12 months was below the target level (over 15%) at 2.5%, but leverage ratio remained within the target area (below 40%) at 36.1%.
| 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|
| Comparable return on average capital employed after tax (Comparable ROACE), % | 2.5 | 23.9 |
| Leverage ratio (net debt to capital), % | 36.1 | 22.7 |
Cash flow, investments and financing
The Group's net cash generated from operating activities totaled EUR 1,183 (2,279) million during 2024. The change compared to last year mainly resulted from decreased EBITDA while net working capital change released cash in 2024. Cash flow before financing activities was EUR -313 (751) million during 2024 and the Group's net working capital in days outstanding was 39.4 days (41.0 days) on a rolling 12-month basis at the end of the fourth quarter.
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| EBITDA | 143 | 672 | 301 | 1,005 | 2,548 |
| Capital gains/losses | 3 | 0 | 0 | 1 | 0 |
| Other adjustments | 58 | -225 | -178 | -150 | 108 |
| Change in net working capital | 709 | 495 | 143 | 454 | 21 |
| Finance cost, net | 0 | -38 | -51 | -122 | -91 |
| Income taxes paid | -2 | -213 | 77 | -5 | -307 |
| Net cash generated from operating activities | 911 | 690 | 292 | 1,183 | 2,279 |
| Capital expenditure | -320 | -416 | -487 | -1,563 | -1,607 |
| Other investing activities | -87 | 201 | 180 | 67 | 79 |
| Free cash flow (Cash flow before financing activities) | 504 | 475 | -16 | -313 | 751 |
Cash-out investments totaled EUR 1,566 (1,621) million and were EUR 1,552 (1,431) million excluding M&A in 2024. The Porvoo major turnaround is reflected in the increased maintenance investments that accounted for EUR 579 (305) million. Productivity and strategic investments totaled for EUR 987 (1,316) million. According to Neste's strategy, significant growth investments continued into Renewable Products where investments
Neste Corporation – Financial statements release for 2024
NESTE
amounted to EUR 1,012 (1,365) million. Oil Products' investments amounted to EUR 466 (208) million and Marketing & Services' investments totaled EUR 27 (16) million. Investments in Others were EUR 61 (32) million, consisting mainly of IT and business infrastructure upgrades.
Neste signed several bilateral green loan agreements in 2024, altogether EUR 550 million. IFRS 16 lease liabilities also increased by EUR 420 million.
Interest-bearing net debt was EUR 4,192 million at the end of December 2024, compared to EUR 2,488 million at the end of 2023. The average interest rate of borrowing at the end of December was 3.3% (3.6%) and the average maturity was 4.1 (5.1) years. At the end of the fourth quarter, the Net debt to EBITDA ratio was 4.2 (1.0) over the last 12 months. The leverage ratio was 36.1% (22.7%) at the end of December.
The Group's liquid funds and committed, unutilized credit facilities amounted to EUR 2,880 (3,480) million at the end of December. There are no financial covenants in the Group companies' existing loan agreements.
In accordance with its hedging policy, Neste hedges a large part of its net foreign currency exposure for the next 12 months, mainly by using forward contracts and currency options. The most important hedged currency is the US dollar. At the end of December, the Group's foreign currency hedging ratio was approximately 51% of the sales margin for the next 12 months.
US dollar exchange rate
| | 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 |
| --- | --- | --- | --- | --- | --- |
| EUR/USD, market rate | 1.07 | 1.08 | 1.10 | 1.08 | 1.08 |
| EUR/USD, effective rate* | 1.10 | 1.08 | 1.09 | 1.09 | 1.06 |
- The effective rate includes the impact of currency hedges.
Segment reviews
Neste's businesses are grouped into three reporting segments: Renewable Products, Oil Products and Marketing & Services.
Renewable Products
Key financials
| | 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 |
| --- | --- | --- | --- | --- | --- |
| Revenue, MEUR | 1,880 | 2,263 | 1,823 | 7,321 | 8,466 |
| EBITDA, MEUR | -56 | 393 | 151 | 242 | 1,049 |
| Comparable EBITDA, MEUR | 13 | 433 | 106 | 514 | 1,906 |
| Operating profit, MEUR | -205 | 245 | 6 | -347 | 568 |
| Net assets, MEUR | 9,064 | 8,069 | 9,082 | 9,064 | 8,069 |
| Return on net assets, % | -4.0 | 7.5 | 1.2 | -4.0 | 7.5 |
| Comparable return on net assets, % | -0.9 | 18.9 | 4.1 | -0.9 | 18.9 |
| Comparable sales margin, USD/ton | 242 | 813 | 341 | 377 | 863 |
- Last 12 months
Neste Corporation – Financial statements release for 2024
NESTE
Variance analysis (comparison to corresponding period), MEUR
| 10-12 | 1-12 | |
|---|---|---|
| Comparable EBITDA, 2023 | 433 | 1,906 |
| Sales volumes | 36 | 94 |
| Sales margin | -481 | -1,483 |
| Currency exchange | 2 | -6 |
| Fixed costs | 24 | -7 |
| Others | 0 | 11 |
| Comparable EBITDA, 2024 | 13 | 514 |
Key drivers
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Biomass-based diesel (D4) RIN, USD/gal | 0.66 | 0.84 | 0.60 | 0.59 | 1.35 |
| California LCFS Credit, USD/ton | 72 | 69 | 54 | 60 | 73 |
| Palm oil price*, USD/ton | 1,064 | 802 | 870 | 902 | 833 |
| Waste and residue's share of total feedstock, % | 90 | 93 | 90 | 90 | 92 |
- CPO BMD 3rd, Crude Palm Oil Bursa Malaysia Derivatives 3rd month futures price
Renewable Products' fourth-quarter comparable EBITDA totaled EUR 13 million, compared to EUR 433 million in the fourth quarter of 2023. Sales margin decreased to USD 242 (813)/ton in the fourth quarter, affecting the comparable EBITDA by EUR -481 million compared to the corresponding period last year. This was mainly driven by significantly lower premium levels in Europe, decreasing price for diesel and higher feedstock costs. In addition, the operational challenges at our refineries had a large negative effect for both sales margin and result in the fourth quarter. The US Blender's Tax Credit (BTC) contribution included in the sales margin was EUR 152 (111) million in the fourth quarter. The BTC expired at the end of 2024.
During the fourth quarter, there were both planned and unplanned shutdowns in Singapore and Rotterdam. This is reflected in the utilization rate, which was on average 41% (102%) at Neste's own renewables production facilities. The Singapore expansion and Martinez ramp-up were completed. Martinez continued to have a diluting impact on Neste's overall comparable sales margin.
The sales volumes were 926 (870) thousand tons in the fourth quarter, of which SAF sales volume expectedly grew and reached 195 (40) thousand tons. During the fourth quarter approximately 53% (61%) of the volumes were sold to the European market and 47% (39%) to North America. The share of waste and residue inputs was 90% (92%) of our total renewable material inputs in 2024.
Strengthening of the US dollar had a positive impact of EUR 2 million on the segment's comparable EBITDA in the fourth quarter compared to the corresponding period last year. The segment's fixed costs were EUR 24 million lower year-over-year. Renewable Products' comparable return on net assets was -0.9% (18.9%) at the end of December based on the previous 12 months.
Renewable Products' full-year comparable EBITDA was EUR 514 (1,906) million. The comparable sales margin was lower than in 2023 and reached USD 377 (863)/ton. The lower sales margin had a negative impact of EUR -1,483 million on the comparable EBITDA year-on-year. The BTC contribution was EUR 590 (417) million during 2024. Sales volumes increased and had an impact of EUR 94 million year-over-year. The US dollar exchange rate had a negative impact of EUR -6 million on the segment's comparable EBITDA compared to the previous year. The segment's fixed costs were EUR 7 million higher than in 2023.
Neste Corporation – Financial statements release for 2024
NESTE
Overall, for waste and residue feedstocks in 2024, the US continued to attract import flows from other regions and impact pricing globally. In the first quarter, strong supply and weak demand led to lower waste and residue prices in the US. Then prices adjusted and found support against vegetable oils. During the second half, waste and residue as well as soybean oil prices initially increased, but soon came down due to strong US soybean crop expectations and a generally weak global market sentiment. Towards the end of the year, lower supply increased vegetable oil prices and this pulled waste and residue prices higher as well.
In Europe, German THG (greenhouse gas reduction quota) ticket carryover freeze and EU anti-dumping duties against Chinese biodiesel and HVO had a positive impact on markets. In the US, market activity was negatively affected by the delayed CFPC policy guidance causing uncertainty. Positive for the Californian Low Carbon Fuel Standard (LCFS) price was that an overhaul to the program got approved. Renewable Identification Number (RIN) D4 market weakened early in 2024 due to strong credit generation and lack of buying interest but then steadily recovered and ended the year at approximately 0.6 USD/gal.
Key drivers affecting the comparable sales margin in Renewable Products include feedstock and middle distillate market prices, the development of renewable diesel price premiums, bioticket and renewable credit price levels, SAF and Martinez sales volume development as well as margin hedging.
Production
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Renewable Diesel*, 1,000 ton | 602 | 814 | 588 | 2,981 | 3,267 |
| SAF, 1,000 ton | 72 | 103 | 123 | 526 | 251 |
| Other products**, 1,000 ton | 13 | 21 | 16 | 87 | 101 |
| TOTAL | 687 | 938 | 727 | 3,594 | 3,618 |
| Utilization rate***, own production, % | 41 | 102 | 52 | 65 | 98 |
- Including production from Martinez joint operation.
** Calculation formula has been adjusted to exclude fuel gas.
*** Based on a nameplate capacity of 4.5 Mton/a. Comparison periods of 2023 are based on nameplate capacity of 3.3 Mton/a.
Sales
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Renewable Diesel, 1,000 ton | 713 | 804 | 865 | 3,225 | 3,164 |
| SAF, 1,000 ton | 195 | 40 | 112 | 412 | 139 |
| Other products, 1,000 ton | 18 | 27 | 22 | 92 | 79 |
| TOTAL | 926 | 870 | 999 | 3,729 | 3,382 |
| Share of sales volumes to Europe, % | 53 | 61 | 51 | 51 | 61 |
| Share of sales volumes to North America, % | 47 | 39 | 49 | 49 | 39 |
Neste Corporation – Financial statements release for 2024
NESTE
Oil Products
Key financials
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Revenue, MEUR | 3,324 | 3,750 | 3,399 | 11,829 | 13,285 |
| EBITDA, MEUR | 198 | 247 | 104 | 667 | 1,375 |
| Comparable EBITDA, MEUR | 153 | 330 | 141 | 633 | 1,434 |
| Operating profit, MEUR | 108 | 159 | 17 | 345 | 1,068 |
| Net assets, MEUR | 2,300 | 2,384 | 2,658 | 2,300 | 2,384 |
| Return on net assets*, % | 14.0 | 42.6 | 15.7 | 14.0 | 42.6 |
| Comparable return on net assets*, % | 13.2 | 45.0 | 19.4 | 13.2 | 45.0 |
| Total refining margin, USD/bbl | 11.8 | 18.9 | 10.6 | 14.1 | 21.1 |
- Last 12 months
Variance analysis (comparison to corresponding period), MEUR
| 10-12 | 1-12 | |
|---|---|---|
| Comparable EBITDA, 2023 | 330 | 1,434 |
| Sales volumes | -21 | -221 |
| Total refining margin | -155 | -545 |
| Currency exchange | 4 | -3 |
| Fixed costs | -13 | 3 |
| Others | 8 | -34 |
| Comparable EBITDA, 2024 | 153 | 633 |
Oil Products' comparable EBITDA totaled EUR 153 (330) million in the fourth quarter. The total refining margin averaged USD 11.8/bbl compared to USD 18.9/bbl in the fourth quarter of 2023, which had a negative impact of EUR -155 million on the comparable EBITDA year-over-year. Both gasoline and diesel margins were substantially weaker compared to the high levels in the corresponding period of 2023. At the same time, sales volumes decreased year-over-year which had a negative impact of EUR -21 million on the comparable EBITDA in the fourth quarter. A stronger US dollar had a positive impact of EUR 4 million, while fixed costs' growth affected EUR -13 million. Oil Products' comparable return on net assets was 13.2% (45.0%) at the end of December over the previous 12 months. The average refinery utilization rate of the Porvoo refinery was 88% (92%).
Oil Products' full-year comparable EBITDA was EUR 633 (1,434) million. The total refining margin averaged USD 14.1/bbl (21.1/bbl) in 2024. The lower total refining margin had a negative impact of EUR -545 million on the comparable EBITDA compared to the previous year. Sales volumes were lower year-over-year due to the Porvoo major turnaround in the second quarter. In total, sales volumes had a negative impact of EUR -221 million on the full-year comparable EBITDA. Currency exchange rates decreased the comparable EBITDA by EUR -3 million while the segment's fixed costs were EUR 3 million lower than in 2023.
Crude oil prices were volatile during 2024, and Brent traded between USD 71/bbl and USD 93/bbl. During the first quarter, the price increased supported by geopolitical tensions but the trend reversed. The price started to decrease during the second and third quarter as the challenging macroeconomic environment and non-OPEC production growth impacted balances. Price volatility reduced in the fourth quarter as markets were trying to balance between OPEC+ delaying decision to cancel voluntary production cuts, still existing geopolitical risks and central banks cutting interest rates to support economic growth. The year ended at USD 74/bbl.
Neste Corporation – Financial statements release for 2024
NESTE
Overall, European refining margins were volatile but on a normalizing trend after transitory strength in 2022-2023. Margins weakened clearly during the second half of the year as global new refining capacity growth and refinery runs exceeded muted oil products demand. On average, both diesel and gasoline cracks were still above their long-term averages in 2024. Key utility prices were lower year-on-year and supported refining economics in Europe.
Production
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Refinery | |||||
| - Production, 1,000 ton | 2,812 | 2,875 | 2,771 | 9,652 | 11,148 |
| - Utilization rate, % | 88 | 92 | 91 | 76 | 88 |
| Refinery production costs, USD/bbl | 6.2 | 6.2 | 5.6 | 6.7 | 6.6 |
Sales from in-house production, by product category (1,000 t)
| 10-12/24 | % | 10-12/23 | % | 7-9/24 | % | 2024 | % | 2023 | % | |
|---|---|---|---|---|---|---|---|---|---|---|
| Middle distillates* | 1,440 | 48 | 1,517 | 48 | 1,415 | 46 | 4,626 | 46 | 5,631 | 47 |
| Light distillates** | 1,119 | 37 | 1,196 | 38 | 1,163 | 38 | 3,877 | 38 | 4,430 | 37 |
| Heavy fuel oil | 303 | 10 | 313 | 10 | 337 | 11 | 1,079 | 11 | 1,321 | 11 |
| Other products | 164 | 5 | 152 | 4 | 131 | 4 | 565 | 6 | 503 | 5 |
| TOTAL | 3,025 | 100 | 3,178 | 100 | 3,045 | 100 | 10,147 | 100 | 11,885 | 100 |
- Diesel, jet fuel, heating oil, low sulphur marine fuels
** Motor gasoline, gasoline components, LPG
Sales from in-house production, by market area (1,000 t)
| 10-12/24 | % | 10-12/23 | % | 7-9/24 | % | 2024 | % | 2023 | % | |
|---|---|---|---|---|---|---|---|---|---|---|
| Baltic Sea area* | 2,115 | 70 | 1,723 | 54 | 1,875 | 62 | 6,606 | 65 | 6,976 | 59 |
| Other Europe | 551 | 18 | 932 | 29 | 740 | 24 | 2,401 | 24 | 3,110 | 26 |
| North America | 247 | 8 | 235 | 7 | 135 | 4 | 443 | 4 | 1,038 | 9 |
| Other areas | 112 | 4 | 288 | 9 | 295 | 10 | 697 | 7 | 762 | 6 |
| TOTAL | 3,025 | 100 | 3,178 | 100 | 3,045 | 100 | 10,147 | 100 | 11,885 | 100 |
- Finland, Sweden, Estonia, Latvia, Lithuania, Poland, Denmark
Neste Corporation – Financial statements release for 2024
NESTE
Marketing & Services
Key financials
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Revenue, MEUR | 1,108 | 1,374 | 1,180 | 4,687 | 5,168 |
| EBITDA, MEUR | 22 | 24 | 32 | 100 | 117 |
| Comparable EBITDA, MEUR | 22 | 25 | 32 | 101 | 118 |
| Operating profit, MEUR | 16 | 13 | 25 | 72 | 84 |
| Net assets, MEUR | 198 | 236 | 198 | 198 | 236 |
| Return on net assets*, % | 30.9 | 34.6 | 28.9 | 30.9 | 34.6 |
| Comparable return on net assets*, % | 31.4 | 35.2 | 29.8 | 31.4 | 35.2 |
- Last 12 months
Variance analysis (comparison to corresponding period), MEUR
| 10-12 | 1-12 | |
|---|---|---|
| Comparable EBITDA, 2023 | 25 | 118 |
| Sales volumes | -4 | -4 |
| Unit margins | 4 | -9 |
| Currency exchange | 0 | 0 |
| Fixed costs | -3 | -7 |
| Others | 1 | 3 |
| Comparable EBITDA, 2024 | 22 | 101 |
Marketing & Services' comparable EBITDA was EUR 22 (25) million in the fourth quarter. Sales volumes decreased year-over-year which had a negative impact of EUR -4 million on the comparable EBITDA. Decrease was mainly driven by low heating oil sales due to warm weather and competitive market environment in the station network in Finland. Unit margins increased year-over-year and had a positive impact of EUR 4 million on the comparable EBITDA. Prior year unit margins were negatively affected by inventory losses due to decline in oil product prices in 2023. The segment's fixed costs were higher year-over-year, mainly due to an ongoing ERP replacement and timing of maintenance expenses.
Marketing & Services segment's full-year comparable EBITDA was EUR 101 (118) million. A year-over-year decline in diesel market demand and competitive market environment in Finland negatively affected sales volume, which had a negative impact of EUR -4 million on the comparable EBITDA. Average unit margins were lower, affecting the comparable EBITDA by EUR -9 million year-over-year. The decline was primarily due to inventory losses from falling global oil prices throughout 2024. The segment's fixed costs were EUR 7 million higher compared to 2023, mainly due to ERP replacement project expenses. Marketing & Services' comparable return on net assets was 31.4% (35.2%) at the end of December on a rolling 12-month basis.
Marketing & Services continued its rollout of electric charging at its largest stations.
Sales volumes by main product categories, million liters
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Gasoline, station sales | 144 | 153 | 169 | 608 | 620 |
| Diesel, station sales | 383 | 405 | 397 | 1,549 | 1,590 |
| Heating oil | 190 | 232 | 219 | 842 | 793 |
Neste Corporation – Financial statements release for 2024
NESTE
Net sales by market area, MEUR
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Finland | 852 | 1,100 | 906 | 3,657 | 4,114 |
| Baltic countries | 256 | 274 | 274 | 1,030 | 1,054 |
| TOTAL | 1,108 | 1,374 | 1,180 | 4,687 | 5,168 |
Others
Key financials
| 10-12/24 | 10-12/23 | 7-9/24 | 2024 | 2023 | |
|---|---|---|---|---|---|
| Comparable EBITDA, MEUR | -18 | 3 | 9 | -1 | -2 |
| Operating profit, MEUR | -27 | -9 | 1 | -51 | -41 |
Others consists of common corporate and functional costs. The allocation timing of these costs to business segments may vary year-over-year and by quarter.
The comparable EBITDA of Others totaled EUR -18 million (3 million) in the fourth quarter. The full-year comparable EBITDA of Others totaled EUR -1 million (-2 million).
Annual General Meeting
Neste Corporation's Annual General Meeting (AGM) was held on 27 March 2024 at Messukeskus, the Helsinki Expo and Convention Centre. The AGM supported all the proposals presented to the meeting and approved the remuneration report and the remuneration policy. The AGM also approved the amendment of the Charter for the Shareholders' Nomination Board resulting in, among other things, that the composition of the Nomination Board will in the future be determined according to the votes produced by the share ownership on the first banking day in June. The AGM adopted the company's Financial Statements and Consolidated Financial Statements for 2023 and discharged the Board of Directors and the President & CEO from liability for 2023.
Dividend payment
The AGM approved the Board of Directors' proposal that a dividend of EUR 1.20 per share would be paid on the basis of the approved balance sheet for 2023. It was decided to pay the dividend in two installments.
The first installment of the dividend, EUR 0.60 per share, was paid to shareholders registered in the shareholders' register of the Company maintained by Euroclear Finland Oy on the record date for the first installment of the dividend, which was 2 April 2024. The first installment of the dividend was paid on 9 April 2024.
The second installment of the dividend, EUR 0.60 per share, was paid to shareholders registered in the shareholders' register of the Company maintained by Euroclear Finland Oy on the record date for the second installment of the dividend, which was 2 October 2024. The second installment of the dividend was paid on 9 October 2024.
Composition and remuneration of the Board of Directors
In accordance with the proposal made by the Shareholders' Nomination Board, the AGM confirmed the number of members of the Board of Directors at ten.
Neste Corporation – Financial statements release for 2024
NESTE
The AGM decided that the following were re-elected to serve until the end of the next AGM: Matti Kähkönen, John Abbott, Nick Elmslie, Just Jansz, Heikki Malinen, Eeva Sipilä and Johanna Söderström. Conrad Keijzer, Pasi Laine and Sari Mannonen were elected as new members.
Matti Kähkönen was re-elected as Chair and Eeva Sipilä was re-elected as Vice Chair.
The AGM decided on the remuneration to the Board for the term starting at the end of the 2024 AGM and ending at the end of the 2025 AGM as follows:
- Chair: EUR 135,000;
- Vice Chair: EUR 75,000;
- Chair of Audit Committee: EUR 75,000 if he or she does not simultaneously act as Chair or Vice Chair of the Board; and
- Member: EUR 60,000.
The AGM decided on the remuneration for participation in Board or committee meetings:
- EUR 1,000 for meetings held in the member's home country;
- EUR 2,000 for meetings held in the same continent as the member's home country; and
- EUR 3,000 for meetings held outside the same continent as the member's home country.
- The meeting fee for meetings held over the telephone or through other means of data communication is paid according to the fee payable for meetings held in the member's home country.
- In addition, compensation for expenses is paid in accordance with the Company's travel guidelines.
The AGM decided that a portion of 40% of the fixed annual fee would be paid in the form of shares and the remainder in cash. Meeting fees would be paid in cash. The shares would be purchased directly on behalf of the Board members within two weeks as of the first trading day of the Helsinki Stock Exchange following the publication of the interim report for the period 1 January to 31 March 2024. If the shares had not been purchased and/or delivered based on a reason pertaining to the Company or the Board member, the fee would have been in cash in its entirety. The Company was responsible for any transfer tax potentially levied on the purchase.
Company Auditor
In accordance with a proposal by the Board of Directors, KPMG Oy Ab, Authorized Public Accountants, was re-elected as the company's Auditor, with Authorized Public Accountant Leenakaisa Winberg as the principally responsible auditor for Neste Corporation, until the end of the next AGM. Payment for their services shall be made in accordance with their invoice approved by the Company.
Sustainability Reporting Assurer
In accordance with a proposal by the Board of Directors, KPMG Oy Ab, Authorized Sustainability Audit Firm, was elected as the company's Sustainability Reporting Assurer, with Authorized Public Accountant, Authorized Sustainability Auditor Leenakaisa Winberg as the principally responsible sustainability reporting assurer for Neste Corporation, until the end of the next AGM. Payment for their services shall be made in accordance with their invoice approved by the Company.
Neste Corporation – Financial statements release for 2024
NESTE
Authorizing the Board of Directors to decide the buyback of Company shares
The AGM approved the authorization, under which the Board is authorized to decide the purchase of and/or take as security a maximum of 23,000,000 Company shares using the Company's unrestricted equity. The number of shares shall be equivalent to approximately 2.99% of the Company's total shares.
Shares may be purchased in one or more lots. The purchase price shall be at least the lowest price paid for Company shares in regulated trading at the time of purchase and no more than the highest price paid for Company shares in regulated trading at the time of purchase. In connection with the buyback of Company shares, derivative, share lending, or other agreements that are normal within the framework of capital markets may take place in accordance with legislative and regulatory requirements and at a price determined by the market. The authorization shall allow the Board to decide to purchase shares otherwise than in proportion to shareholders' current holdings (directed buyback).
Shares so purchased can be used as consideration in possible acquisitions or in other arrangements that are part of the Company's business, to finance investments, as part of the Company's incentive program, or be retained, conveyed, or canceled by the Company.
The Board of Directors shall decide the other terms related to the buyback of Company shares. The Buyback authorization shall remain in force for eighteen (18) months from the decision taken by the AGM.
Authorizing the Board of Directors to decide on share issue
The AGM approved the authorization, under which the Board is authorized to take one or more decisions on the issuance of new shares and/or the conveyance of treasury shares held by the Company, provided that the number of shares thereby issued and/or conveyed totals a maximum of 23,000,000 shares, equivalent to approximately 2.99% of all the Company's shares.
The new shares may be issued and/or the treasury shares held by the Company may be conveyed to the Company's shareholders in proportion to the shares they already own or through a directed share issue that bypasses shareholders' pre-emptive rights if the Company has a weighty financial reason for doing so, such as using the shares in question as consideration in possible acquisitions or in other arrangements that are part of the Company's business, to finance investments, or as part of the Company's incentive program.
The new shares may be issued and/or the treasury shares held by the Company may be conveyed against payment or free of charge. A directed share issue may only be made free of charge if there is a particularly weighty financial reason, in respect of the Company's interests and those of all of its shareholders, for doing so. The new shares may also be issued free of charge to the Company itself.
The Board shall decide on other terms and conditions of share issue. The authorization shall remain in force for eighteen (18) months from the decision taken by the AGM.
Amendment of the Articles of Association
The AGM approved the Board's proposal to amend the Company's Articles of Association as follows:
Due to new legislation concerning sustainability reporting assurer, a new Article 10 regarding sustainability reporting assurer was added to the Articles of Association, and as a result, previous Articles 10 and 11 became Articles 11 and 12, correspondingly.
Neste Corporation – Financial statements release for 2024
NESTE
Further, the current Article 12 (previous Article 11) was amended so that to the items on the agenda of the AGM, a reference of the fee of the sustainability reporting assurer was added (supplement to the current sub-item 8), and that a new reference to the election of the sustainability reporting assurer was added at the end of the article (new sub-item 12).
Shares, share trading, and ownership
Neste's shares are listed at NASDAQ Helsinki Ltd. The share price closed the fourth quarter at EUR 12.13 down by 30.41% compared to the end of the third quarter. At its highest during the quarter, the share price reached EUR 17.42, while the lowest share price was EUR 10.98. Market capitalization was EUR 9.3 billion as of 31 December 2024. An average of 2.16 million shares were traded daily, representing 0.3% of the company's shares.
At the end of December 2024, Neste held 995,324 treasury shares. Neste's share capital registered with the Trade Register totaled EUR 40 million, and the total number of shares was 769,211,058. The Board of Directors has authorizations to issue and buy back shares, as decided by the AGM held on 27 March 2024.
As of 31 December 2024, the State of Finland owned directly 44.2% (44.2% at the end of 2023) of outstanding shares, foreign institutions owned 29.8% (36.8%), Finnish institutions 14.8% (10.6%), and households 11.2% (8.4%) of outstanding shares.
Personnel
Neste employed an average of 5,796 (6,018) employees during 2024, of which 2,153 (2,114) were based outside Finland. At the end of December, the company had 5,481 (6,014) employees, of which 2,133 (2,190) were located outside Finland.
Sustainability
Key figures
| 10-12/24 | 10-12/23 | 2024 | 2023 | |
|---|---|---|---|---|
| TRIF* | 2.0 | 1.7 | 2.2 | 2.3 |
| PSER** | 1.3 | 2.4 | 1.3 | 1.2 |
| GHG emission reduction, Mton*** | 2.8 | 3.1 | 12.1 | 11.0 |
- Total Recordable Incident Frequency, number of cases per million hours worked. Includes both Neste's and contractors' personnel.
** Process Safety Event Rate, number of cases per million hours worked.
*** Greenhouse gas (GHG) emission reduction achieved over the lifecycle with Neste's renewable products compared to 100% crude oil based fuel. The value is based on market regulations which provide the methodology and define the fossil diesel reference GHG emissions value. Current reporting period's GHG emission reduction includes some impact from previous periods' sales.
Neste continues to measure and report TRIF (Total Recordable Incident Frequency) and PSER (Process Safety Event Rate) as the company's long-term safety key performance indicators (KPIs).
New organizational units in the US, such as those from the SeQuential acquisition in 2022, have been integrated into Neste's TRIF reporting in 2024.
Neste's occupational safety incident frequency is measured by the TRIF indicator. Fourth quarter TRIF performance was 2.0 (1.7) while the full year TRIF 2.2 was improved from 2023 (2.3). Process safety (PSER)
Neste Corporation – Financial statements release for 2024
NESTE
performance was 1.3 (2.4) in the fourth quarter while full year performance of 1.3 was behind performance in 2023 (1.2).
Neste produces renewable products that enable its customers to reduce their greenhouse gas (GHG) emissions. In 2024, this GHG reduction was 12.1 (11.0) million tons.
In total 15 (13) non-compliance cases with limited local environmental impact occurred at Neste's operations. These include non-compliance in respect of the environmental permits at the Rotterdam refinery.
In 2024, Neste continued to turn its sustainability vision into concrete actions across all vision areas: climate, biodiversity, human rights, and supply chain and raw materials. In addition, Neste built its readiness to meet Corporate Sustainability Reporting Directive (CSRD) requirements and will publish Sustainability statements for 2024 in accordance with the sustainability reporting standards referred to in Chapter 7 of the Finnish Accounting Act and with Article 8 of the Taxonomy Regulation.
In 2024, Neste continued to make progress towards its climate commitments. Neste and the Exponential Roadmap Initiative (ERI) started collaboration in 2024 aiming to align with the criteria of the UN Climate Change High-Level Champion's Race to Zero. Neste works on various initiatives aiming to reduce its production GHG emissions (scopes 1 & 2) by 50% by 2030 compared to 2019 and reach carbon neutral production by 2035. Renewable electricity remains as a key initiative in the short-term, and in 2024, solar power supply to the Porvoo refinery started from the Lakari solar plant in Rauma, Finland. For scope 3 emissions, Neste's aims to reduce the use phase emission intensity of its sold products by 50% by 2040 compared to 2020, and is committed to work with its suppliers and partners to reduce GHG emissions across the entire value chain. Neste's ambition is to gradually transform the oil refinery in Porvoo, Finland into a leading renewable and circular solutions refining hub. To achieve the ambition at the Porvoo refinery, Neste is, for example, building an upgrading unit for liquefied waste plastic, and has started modifying existing refinery units to enable co-processing of renewable and recycled raw materials with fossil raw materials in the conventional refining process. With the help of co-processing in Neste's oil refining processes, the company can produce additional volumes of products that have lower GHG emissions.
Biodiversity is one of the cornerstones of Neste's sustainability vision, and we aim to drive a positive impact on biodiversity and achieve a nature positive value chain by 2040. In 2024, Neste continued the work towards its vision. Neste aims at creating net positive impacts (NPI) for biodiversity from new activities in its own operations from 2025 onwards, and targets no net loss (NNL) of biodiversity from all ongoing activities in its own operations by 2035.
In 2024, Neste was recognized as a Leader in Global Child Forum's annual benchmark, The State of Children's Rights and Business 2024. Neste was ranked among the top 10 companies out of the 1,802 benchmarked companies across eight sectors and six regions and placed as 1st out of the 237 companies in the energy and utilities sector.
In 2024, Neste updated its internal living wage gap assessments covering all countries in its global operations, using data provided by the Fair Wage Network. The analysis of assessment results will continue in 2025, ensuring a thorough evaluation of diverse remuneration elements in all locations worldwide.
Neste continued the implementation of its Supplier Code of Conduct (SCoC). In 2024, Neste strengthened its sustainability due diligence practices with a key focus on suppliers with the highest risks and most significant strategic importance. Neste carried out training for our renewable raw material suppliers in Asia, Oceania, the Americas and EMEA with focus on health and safety. In addition, capacity building training was held on the topics of environmental management and human rights.
Neste Corporation – Financial statements release for 2024
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NESTE
In 2024, Neste published a renewed Green Finance Framework to align future financing activities with market best practices and standards. Neste also published its annual Green Finance Report for 2023.
Neste was included in the Dow Jones Sustainability Indices (DJSI) for the 18th consecutive year in 2024. Neste was included in both the DJSI World and DJSI Europe indices, placing Neste among the top performers in its industry based on S&P Corporate Sustainability Assessment (CSA). Neste reached AAA rating in 2024 in MSCI ESG Rating Index measuring the company's resilience to long-term ESG risks, and continues to be the leading energy company on the Global 100 list of most sustainable companies by the Corporate Knights.
Read more about the company's sustainability work on Neste's website.
Innovation
Neste's innovation expenditure totaled EUR 86 (94) million in 2024. During the year, we increased our focus on supporting existing businesses and enhancing their competitiveness. We prioritized research investments to advance chemical recycling and develop innovative pretreatment technologies.
Main events published during 2024
On 31 January, Neste announced that the Shareholders' Nomination Board had forwarded to the Board of Directors of the Company its proposals to the 2024 AGM. The Nomination Board proposed that Matti Kähkönen be re-elected as the Chair of the Board of Directors. In addition, the current members of the Board, John Abbott, Nick Elmslie, Just Jansz, Heikki Malinen, Eeva Sipilä and Johanna Söderström were proposed to be re-elected for a further term of office. The Nomination Board proposed that Eeva Sipilä should be re-elected as the Vice Chair of the Board. Further, the Nomination Board proposed that the Board should have ten members and that Conrad Keijzer, Pasi Laine and Sari Mannonen should be elected as new members.
On 29 April, Neste announced that the Board of Directors of Neste Corporation and Matti Lehmus, President and CEO since May 2022, had reached a mutual agreement that Matti Lehmus will leave his position as the President and CEO. In order to secure an orderly transition to the new President and CEO, Lehmus continued as President and CEO until his successor started.
On 2 May, Neste announced that the Board of Directors had appointed Heikki Malinen, M.Sc. (Econ.), MBA (Harvard) as the President and CEO of Neste as of 2 November 2024, at the latest. Malinen joined Neste from Outokumpu Corporation where he had held the position of President and CEO since 2020. Malinen was a member of the Board of Directors of Neste, from which position he stepped down before assuming the duties of the President and CEO.
On 8 May, Neste announced that Katja Wodjereck, Executive Vice President, Renewable Products business unit and a member of the Executive Committee since 1 April 2023 stepped down from her position as of 8 May and left the company to pursue other opportunities. Carl Nyberg, Executive Vice President, Renewables Supply Chain and Sustainability and a member of the Executive Committee since 2019, took the interim lead in the Renewable Products business in addition to his existing responsibilities.
On 14 May, Neste revised downwards its 2024 comparable sales margin guidance for Renewable Products. The rest of the guidance for Renewable Products as well as the guidance for Oil Products remained unchanged.
Neste Corporation – Financial statements release for 2024
NESTE
On 7 June, Neste announced that the following members had been appointed to Neste's Shareholders' Nomination Board: Director General Maija Strandberg of the Ownership Steering Department in the Prime Minister's Office of Finland, as the Chair, and Senior Vice President, Investments Timo Sallinen of Varma Mutual Pension Insurance Company and President and CEO Jouko Pölönen of Ilmarinen Mutual Pension Insurance Company, as its members. Matti Kähkönen, the Chair of Neste's Board of Directors, acts as an expert to the Nomination Board.
On June 13, Neste announced that Heikki Malinen, a member of the Board of Directors of Neste Corporation, had announced his resignation from the Board of the company as of 13 June. The reason for the resignation was his appointment as Neste's President and CEO as of 2 November 2024, at the latest. After Malinen's resignation Neste's Board comprised nine members.
On 2 September, Neste announced that Heikki Malinen would assume the role of Neste's President and CEO on 15 October 2024. He succeeds Matti Lehmus, who continued as the President and CEO of Neste until 14 October 2024 and acted as an advisor to the company and its management until mid-November 2024 to ensure a smooth transition.
On 11 September, Neste revised downwards its 2024 comparable sales margin guidance for Renewable Products. Neste also revised its Renewable Products' total sales volume and SAF sales volume forecasts based on its latest sales outlook. Neste optimizes its production capacity utilization in Renewable Products according to the market situation.
On 28 October, Neste appointed a new Leadership Team and Eeva Sipilä as CFO. The new Leadership Team was appointed in order to improve operational efficiency and performance. Heikki Malinen, in addition to his President and CEO role, took the lead of Neste's Renewable Products business area. Markku Korvenranta continues in the Leadership Team and was appointed Executive Vice President, Oil Products, and Chief Operating Officer (COO) of the company. Eeva Sipilä was appointed Chief Financial Officer (CFO) and she joins Neste from Metso Corporation where she has served as CFO and Deputy CEO. She has been Vice Chair of the Board of Neste since 2023 and Member of the Board since 2022. She will start at Neste no later than 1 May 2025. Until then Anssi Tammilehto, Vice President, Investor Relations, will act as interim CFO. Hannele Jakosuo-Jansson continues in the Leadership Team as Executive Vice President, People & Culture.
On 8 November, Neste changed its guidance due to an unplanned shutdown of Rotterdam refinery. Neste's Rotterdam refinery was shut down due to a fire on 8 November 2024. The fire did not cause any injuries. The Rotterdam refinery production was down for several weeks impacting the renewable diesel customer deliveries. As a result, Neste changed its Renewable Products total sales volume guidance for 2024.
On 18 December, Neste announced that the Shareholders' Nomination Board had forwarded to the Board of Directors of the Company its proposals to the 2025 AGM. The Nomination Board proposed that the Board should have eight members. The current members John Abbott, Nick Elmslie, Just Jansz, Conrad Keijzer, Pasi Laine and Sari Mannonen were proposed to be re-elected for a further term of office. The Nomination Board proposed that Anna Hyvönen and Essimari Kairisto should be elected as new members. Matti Kähkönen, the Chair of Neste's Board of Directors, is stepping down from his Board position as planned and will not be available for re-election for the next term of office. The Nomination Board proposed that Pasi Laine should be elected as the Chair and John Abbott as the Vice Chair of the Board. In addition to Matti Kähkönen, the current Board member Johanna Söderström has informed that she will not be available for re-election for the next period of office. Eeva Sipilä will start as Neste's CFO no later than 1 May 2025, and will resign from the company's Board before the AGM.
Neste Corporation – Financial statements release for 2024
19
NESTE
Events published after the reporting period
On 13 February, Neste announced a new performance improvement program, and updated financial targets and capital allocation for 2025–2026 as well as Board's dividend proposal for the year 2024. In 2025–2026, Neste plans to refocus from growth and development to efficiency and profitability, including capital discipline. To improve profitability and cost-competitiveness, Neste plans to further simplify its operating model and increase internal efficiency. As a result, the company starts change negotiations that cover Oil Products and Renewable Products business areas and all global functions, targeting total annual cost savings of approximately EUR 65 million. The planned organizational changes are expected to lead to a permanent reduction of approximately 600 positions, of which approximately 450 in Finland.
All the releases and news can be found on Neste's website.
Potential risks
Neste's growth and financial performance may be affected by the general macroeconomic and geopolitical development. In addition, regulatory changes on the European Union or individual member state level or in the US may adversely affect particularly Neste's renewables businesses. As an example, implications from the transition from BTC to CFPC in the US could have an impact on the relative competitiveness of US vs. foreign fuel producers. There are also trade policy related risks. All of these could lead to changes in optimization of Neste's overall production of renewables as well as balancing of sales between different solutions and end markets.
The continuing war in Ukraine and the escalated crisis in the Middle East have intensified geopolitical risks that could have a material impact on the global and European energy markets. The war and the crisis may result in further trade sanctions, impact supply chains as well as influence market supply and demand conditions. These could also create further pressure on the prices of feedstock, materials, services, logistics and utilities and affect energy markets as a whole, particularly in Europe.
Main market risks to Neste's businesses relate, for example, to changes in feedstock and product market prices, overall supply-demand balance, the growth rate in demand and Neste's competitive situation. Fluctuations in commodity prices affect Neste's production costs, product pricing, profitability, earnings and credit availability.
Other risks potentially affecting Neste's financial results in the next 12 months include any scheduled or unexpected shutdowns at Neste's refineries, delays or cost overruns in Rotterdam growth project, potential strikes, cyber and IT related risks, counterparty risks and outcome of legal proceedings. Neste operates its refineries in integrated industrial complexes with exposure to off take and delivery of utilities, in particular.
For more detailed information on Neste's risks and risk management, please refer to the Annual Report and the Notes to the Financial Statement.
Neste Corporation – Financial statements release for 2024
NESTE
Dividend distribution proposal
In light of the current financial position of the company, the Board has decided to cancel the dividend policy announced on 19 June 2023, and proposes a dividend payout of EUR 0.20 per share based on the approved balance sheet for 2024 to the Annual General Meeting. Going forward, the company seeks to maximize operating cash flow in order to strengthen the balance sheet with the potential to review the dividend in the future.
The dividend shall be paid in one installment EUR 0.20 per share to shareholders registered in the shareholders' register of the Company maintained by Euroclear Finland Ltd on the record date for the dividend payment, which shall be 27 March 2025. The Board proposes to the AGM that the dividend would be paid on 3 April 2025.
The proposed total dividend EUR 0.20 per share represents a yield of 1.6% (at year-end 2024 share price of EUR 12.13). The total dividend payout in 2025 amounts to approximately EUR 154 million.
Reporting date for the company's first-quarter 2025 results
Neste will publish its first-quarter 2025 results on 29 April 2025 at approximately 9:00 a.m. EET.
Espoo, 13 February 2025
Neste Corporation
Board of Directors
Further information:
Heikki Malinen, President and CEO, tel. +358 10 458 11
Anssi Tammilehto, Interim Chief Financial Officer, and SVP, Strategy, M&A and Investor Relations,
tel. +358 50 458 8436
Conference call
A webcast and conference call in English for investors and analysts will be held on 13 February 2025, at 3 p.m. Finland / 1 p.m. London / 8 a.m. New York. In order to receive the participant dial in numbers and a unique personal PIN, participants are requested to register using this link:
https://events.inderes.com/neste/q4-2024/dial-in. The conference call can also be followed as a webcast.
The preceding information contains, or may be deemed to contain, "forward-looking statements". These statements relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties, and other factors that may cause Neste Corporation's or its businesses' actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," or "continue," or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the forward-looking statements, possibly to a material degree. All forward-looking statements made in this report are based on information presently available to management and Neste Corporation assumes no obligation to update any forward-looking statements. Nothing in this report constitutes investment advice and this report
Neste Corporation – Financial statements release for 2024
NESTE
shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity.
Neste Corporation – Financial statements release for 2024
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NESTE
NESTE GROUP
JANUARY - DECEMBER 2024
The financial statements release is unaudited
FINANCIAL STATEMENTS SUMMARY AND NOTES TO THE FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
| EUR million | Note | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
|---|---|---|---|---|---|
| Revenue | 2, 3 | 5,568 | 6,303 | 20,635 | 22,926 |
| Other income | 15 | 21 | 54 | 55 | |
| Share of profit (loss) of associates and joint ventures | 6 | -3 | -5 | -9 | 1 |
| Materials and services | -5,073 | -5,287 | -18,388 | -19,098 | |
| Employee benefit costs | -146 | -157 | -582 | -642 | |
| Depreciation, amortization and impairments | 3 | -254 | -257 | -980 | -866 |
| Other expenses | -218 | -203 | -706 | -695 | |
| Operating profit | 3 | -110 | 415 | 25 | 1,682 |
| Financial income and expenses | |||||
| Financial income | 9 | 17 | 47 | 45 | |
| Financial expenses | -43 | -23 | -156 | -122 | |
| Exchange rate and fair value gains and losses | -16 | -3 | -29 | -9 | |
| Total financial income and expenses | -50 | -9 | -138 | -86 | |
| Profit before income taxes | -160 | 407 | -113 | 1,596 | |
| Income tax expense | 25 | -6 | 19 | -160 | |
| Profit for the period | -135 | 400 | -95 | 1,436 | |
| Profit attributable to: | |||||
| Owners of the parent | -135 | 400 | -95 | 1,433 | |
| Non-controlling interests | 0 | 0 | 0 | 3 | |
| -135 | 400 | -95 | 1,436 | ||
| Earnings per share from profit attributable to the owners of the parent (in euro per share) | |||||
| Basic earnings per share | -0.18 | 0.52 | -0.12 | 1.87 | |
| Diluted earnings per share | -0.18 | 0.52 | -0.12 | 1.87 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR million | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
|---|---|---|---|---|
| Profit for the period | -135 | 400 | -95 | 1,436 |
| Other comprehensive income net of tax: | ||||
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements on defined benefit plans | 7 | -3 | 5 | 11 |
| Net change of other investments at fair value | -2 | 0 | -15 | -3 |
| Total | 5 | -3 | -10 | 8 |
| Items that may be reclassified subsequently to profit or loss | ||||
| Translation differences | 119 | -74 | 100 | -66 |
| Cash flow hedges | ||||
| recorded in equity | -127 | 80 | -141 | 50 |
| transferred to income statement | 12 | 4 | 19 | -85 |
| Share of other comprehensive income of investments accounted for using the equity method | -1 | -5 | -2 | -4 |
| Total | 3 | 5 | -23 | -105 |
| Other comprehensive income for the period, net of tax | 8 | 2 | -34 | -97 |
| Total comprehensive income for the period | -127 | 402 | -128 | 1,339 |
| Total comprehensive income attributable to: | ||||
| Owners of the parent | -127 | 402 | -128 | 1,336 |
| Non-controlling interests | 0 | 0 | 0 | 3 |
| -127 | 402 | -128 | 1,339 |
Neste Corporation – Financial statements release for 2024
NESTE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR million | Note | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 5 | 514 | 496 |
| Intangible assets | 5 | 164 | 185 |
| Property, plant and equipment | 5 | 8,872 | 7,786 |
| Investments in associates and joint ventures | 6 | 53 | 58 |
| Non-current receivables | 8 | 128 | 126 |
| Deferred tax assets | 222 | 127 | |
| Derivative financial instruments | 8 | 33 | 26 |
| Other financial assets | 8 | 40 | 54 |
| Total non-current assets | 10,026 | 8,858 | |
| Current assets | |||
| Inventories | 2,898 | 3,366 | |
| Trade and other receivables | 1,539 | 1,913 | |
| Current tax assets | 50 | 76 | |
| Derivative financial instruments | 8 | 113 | 190 |
| Current investments | 0 | 5 | |
| Cash and cash equivalents | 8 | 955 | 1,575 |
| Total current assets | 5,555 | 7,125 | |
| Total assets | 3 | 15,581 | 15,983 |
| EQUITY | |||
| Capital and reserves attributable to the owners of the parent | |||
| Share capital | 40 | 40 | |
| Other equity | 7,377 | 8,423 | |
| Total | 7,417 | 8,463 | |
| Non-controlling interests | 0 | 0 | |
| Total equity | 7,417 | 8,463 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Interest-bearing liabilities | 8 | 4,362 | 3,487 |
| Deferred tax liabilities | 335 | 317 | |
| Provisions | 144 | 187 | |
| Pension liabilities | 73 | 93 | |
| Derivative financial instruments | 8 | 8 | 6 |
| Other non-current liabilities | 32 | 42 | |
| Total non-current liabilities | 4,953 | 4,132 | |
| Current liabilities | |||
| Interest-bearing liabilities | 8 | 786 | 581 |
| Current tax liabilities | 11 | 15 | |
| Derivative financial instruments | 8 | 230 | 212 |
| Trade and other payables | 2,185 | 2,580 | |
| Total current liabilities | 3,210 | 3,388 | |
| Total liabilities | 3 | 8,164 | 7,520 |
| Total equity and liabilities | 15,581 | 15,983 |
Neste Corporation – Financial statements release for 2024
NESTE
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
| EUR million | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Profit before income taxes | -160 | 407 | -113 | 1,596 |
| Adjustments, total | 365 | 40 | 969 | 1,060 |
| Change in net working capital | 709 | 495 | 454 | 21 |
| Cash generated from operations | 913 | 942 | 1,309 | 2,677 |
| Finance cost, net | 0 | -38 | -122 | -91 |
| Income taxes paid | -2 | -213 | -5 | -307 |
| Net cash generated from operating activities | 911 | 690 | 1,183 | 2,279 |
| Cash flows from investing activities | ||||
| Capital expenditure | -318 | -416 | -1,552 | -1,430 |
| Acquisitions of subsidiaries | -2 | 0 | -11 | -176 |
| Proceeds from sales of property, plant and equipment | 4 | 0 | 8 | 0 |
| Changes in long-term receivables and other financial assets | -92 | 201 | 59 | 78 |
| Cash flows from investing activities | -407 | -215 | -1,496 | -1,528 |
| Cash flow before financing activities | 504 | 475 | -313 | 751 |
| Cash flows from financing activities | ||||
| Net change in loans and other financing activities | 51 | 361 | 887 | 1,002 |
| Repayments of lease liabilities | -71 | -84 | -278 | -254 |
| Transactions with non-controlling interests | 0 | -18 | 0 | -18 |
| Dividends paid to the owners of the parent | -461 | -584 | -922 | -1,168 |
| Dividends paid to non-controlling interests | 0 | 0 | -1 | -3 |
| Cash flows from financing activities | -481 | -324 | -314 | -441 |
| Net increase (+) / decrease (-) in cash and cash equivalents | 23 | 150 | -627 | 311 |
| Cash and cash equivalents at the beginning of the period | 922 | 1,430 | 1,575 | 1,271 |
| Exchange gains (+) / losses (-) on cash and cash equivalents | 11 | -6 | 7 | -7 |
| Cash and cash equivalents at the end of the period | 955 | 1,575 | 955 | 1,575 |
Neste Corporation – Financial statements release for 2024
NESTE
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| EUR million | Share capital | Reserve fund | Reserve of invested unrestricted equity | Treasury shares | Fair value and other reserves | Actuarial gains and losses | Translation differences | Retained earnings | Owners of the parent | Non-controlling interests | Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total equity at 1 January 2024 | 40 | 7 | 16 | -5 | 56 | -67 | -131 | 8,548 | 8,463 | 0 | 8,463 |
| Profit for the period | -95 | -95 | 0 | -95 | |||||||
| Other comprehensive income for the period, net of tax | -138 | 5 | 100 | -34 | -34 | ||||||
| Total comprehensive income for the period | 0 | 0 | 0 | 0 | -138 | 5 | 100 | -95 | -128 | 0 | -128 |
| Transactions with the owners in their capacity as owners | |||||||||||
| Dividend decision | -922 | -922 | 0 | -922 | |||||||
| Share-based compensation | 0 | 3 | 3 | 3 | |||||||
| Transfer from retained earnings | 0 | 0 | 0 | 0 | |||||||
| Total equity at 31 December 2024 | 40 | 7 | 16 | -5 | -82 | -63 | -32 | 7,536 | 7,417 | 0 | 7,417 |
| EUR million | Share capital | Reserve fund | Reserve of invested unrestricted equity | Treasury shares | Fair value and other reserves | Actuarial gains and losses | Translation differences | Retained earnings | Owners of the parent | Non-controlling interests | Total equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total equity at 1 January 2023 | 40 | 7 | 16 | -5 | 98 | -78 | -66 | 8,309 | 8,322 | 5 | 8,327 |
| Profit for the period | 1,433 | 1,433 | 3 | 1,436 | |||||||
| Other comprehensive income for the period, net of tax | -43 | 11 | -66 | -97 | 0 | -97 | |||||
| Total comprehensive income for the period | 0 | 0 | 0 | 0 | -43 | 11 | -66 | 1,433 | 1,336 | 3 | 1,339 |
| Transactions with the owners in their capacity as owners | |||||||||||
| Dividend decision | -1,168 | -1,168 | -3 | -1,171 | |||||||
| Transactions with non-controlling interests | -27 | -27 | -4 | -31 | |||||||
| Share-based compensation | 1 | 0 | 1 | 1 | |||||||
| Transfer from retained earnings | 0 | 0 | -1 | -1 | |||||||
| Total equity at 31 December 2023 | 40 | 7 | 16 | -5 | 56 | -67 | -131 | 8,548 | 8,463 | 0 | 8,463 |
Neste Corporation – Financial statements release for 2024
NESTE
KEY FIGURES
| 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|
| Revenue | 20,635 | 22,926 |
| Profit for the period | -95 | 1,436 |
| Earnings per share (EPS), EUR | -0.12 | 1.87 |
| Alternative performance measures | ||
| EBITDA, EUR million | 1,005 | 2,548 |
| Comparable EBITDA, EUR million | 1,252 | 3,458 |
| Capital employed, EUR million | 12,564 | 12,532 |
| Interest-bearing net debt, EUR million | 4,192 | 2,488 |
| Comparable return on average capital employed, after tax, (Comparable ROACE) % | 2.5 | 23.9 |
| Return on equity, (ROE) % | -1.2 | 17.9 |
| Equity per share, EUR | 9.65 | 11.02 |
| Cash flow per share, EUR | 1.54 | 2.97 |
| Comparable earnings per share, EUR | 0.17 | 2.88 |
| Comparable net profit | 131 | 2,216 |
| Equity-to-assets ratio, % | 47.7 | 53.1 |
| Leverage ratio, % | 36.1 | 22.7 |
| Net working capital in days outstanding | 39.4 | 41.0 |
| Net Debt to EBITDA, % | 4.2 | 1.0 |
| Dividend per share | 0.20 1) | 1.20 |
| Dividend payout ratio, % | -162.3 1) | 64.3 |
| Dividend yield, % | 1.6 1) | 3.7 |
| Weighted average number of shares outstanding | 768,212,287 | 768,175,637 |
| Number of shares outstanding at the end of the period | 768,215,734 | 768,199,747 |
| Average number of personnel | 5,796 | 6,018 |
1) Board of Directors proposal to the Annual General Meeting
Neste presents Alternative Performance Measures (APM) to enhance comparability between financial periods as well as to reflect operational performance and financial risk level. These indicators should be examined together with the IFRS-compliant performance indicators. The detailed reasons for the use of APMs can be found on Neste's Annual Report 2023 and website www.reste.com together with the calculation of key figures.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed interim report should be read in conjunction with Neste's annual consolidated financial statements for the year ended 31 December 2023, which have been prepared in accordance with IFRS. The accounting policies applied are consistent with those followed in the preparation of Neste's annual consolidated financial statements for the year ended 31 December 2023 except for the adoption of new and amended standards as set out below.
Neste has applied new standards and interpretations published by IASB that are effective for the first time for financial reporting periods commencing on 1 January 2024. These standards and interpretations did not have a material impact on the results or financial position of Neste, or the presentation of the condensed interim report.
Neste has adopted the global minimum tax rules (Pillar Two) in 2024 and recognizes income tax accordingly.
The condensed interim report is presented in million euros unless otherwise stated. The figures in the tables are subject to rounding, which may cause some rounding inaccuracies in aggregate column and row totals.
The IFRS principles require the management to make estimates and assumptions when preparing financial statements. Although these estimates and assumptions are based on the management's best knowledge of today, the final outcome may differ from the estimated values presented in the financial statements.
Key accounting considerations related to geopolitical and economical uncertainty
Neste continued to assess the impacts of geopolitical and economical uncertainty by reviewing the carrying values of the balance sheet items, which did not indicate a need for asset impairments. Neste's financial position remained strong with liquid funds EUR 955 million and committed unutilized credit facilities EUR 1,925 million on 31 December 2024.
Neste Corporation – Financial statements release for 2024
NESTE
2. REVENUE
REVENUE BY CATEGORY
| External revenue | 10-12/2024 | 10-12/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Renewable Products | Oil Products | Marketing & Services | Others | Total | Renewable Products | Oil Products | Marketing & Services | Others | Total | |
| Fuels 1) | 1,602 | 2,504 | 1,073 | 0 | 5,179 | 2,062 | 2,634 | 1,331 | 0 | 6,027 |
| Middle distillates | 1,573 | 1,408 | 859 | 0 | 3,840 | 2,015 | 1,545 | 1,085 | 0 | 4,646 |
| Light distillates | 29 | 920 | 213 | 0 | 1,162 | 47 | 928 | 245 | 0 | 1,220 |
| Heavy fuel oil | 0 | 176 | 1 | 0 | 177 | 0 | 160 | 1 | 0 | 161 |
| Other products | 206 | 123 | 22 | 0 | 351 | 138 | 94 | 27 | 0 | 259 |
| Other services | 11 | 23 | 2 | 2 | 38 | 2 | 7 | 3 | 6 | 17 |
| Total | 1,819 | 2,650 | 1,098 | 2 | 5,568 | 2,201 | 2,735 | 1,361 | 6 | 6,303 |
| 1-12/2024 | 1-12/2023 | |||||||||
| Renewable Products | Oil Products | Marketing & Services | Others | Total | Renewable Products | Oil Products | Marketing & Services | Others | Total | |
| Fuels 1) | 6,355 | 8,421 | 4,539 | 0 | 19,315 | 7,522 | 9,162 | 5,003 | 0 | 21,687 |
| Middle distillates | 6,203 | 4,650 | 3,596 | 0 | 14,449 | 7,383 | 5,141 | 3,986 | 0 | 16,510 |
| Light distillates | 153 | 3,161 | 938 | 0 | 4,252 | 139 | 3,404 | 1,012 | 0 | 4,556 |
| Heavy fuel oil | 0 | 610 | 5 | 0 | 615 | 0 | 616 | 5 | 0 | 620 |
| Other products | 681 | 359 | 96 | 0 | 1,136 | 685 | 338 | 107 | 0 | 1,129 |
| Other services | 38 | 124 | 10 | 11 | 183 | 5 | 66 | 12 | 26 | 109 |
| Total | 7,075 | 8,904 | 4,645 | 11 | 20,635 | 8,212 | 9,566 | 5,123 | 26 | 22,926 |
1) Middle distillates comprise diesel, jet fuels, low sulphur marine fuels, heating oil, renewable fuels, and sustainable aviation fuels. Light distillates comprise motor gasoline, gasoline components, liquefied petroleum gas, renewable naphtha, and biopropane. RINs (Renewable Identification Number), LCFS (Low Carbon Fuels Standard) credits, and BTCs (Blender's Tax Credits) are included in the corresponding fuel categories in the Renewable Products segment.
TIMING OF REVENUE RECOGNITION
| External revenue | 10-12/2024 | 10-12/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Renewable Products | Oil Products | Marketing & Services | Others | Total | Renewable Products | Oil Products | Marketing & Services | Others | Total | |
| Goods transferred at point in time | 1,807 | 2,627 | 1,095 | 0 | 5,530 | 2,200 | 2,728 | 1,358 | 0 | 6,286 |
| Services transferred at point in time | 11 | 23 | 2 | 0 | 36 | 2 | 7 | 3 | 0 | 11 |
| Services transferred over time | 0 | 0 | 0 | 2 | 2 | 0 | 0 | 0 | 6 | 6 |
| Total | 1,819 | 2,650 | 1,098 | 2 | 5,568 | 2,201 | 2,735 | 1,361 | 6 | 6,303 |
| 1-12/2024 | 1-12/2023 | |||||||||
| Renewable Products | Oil Products | Marketing & Services | Others | Total | Renewable Products | Oil Products | Marketing & Services | Others | Total | |
| Good transferred at point in time | 7,037 | 8,780 | 4,635 | 0 | 20,452 | 8,207 | 9,499 | 5,110 | 0 | 22,816 |
| Services transferred at point in time | 38 | 124 | 10 | 1 | 173 | 5 | 66 | 12 | 1 | 84 |
| Services transferred over time | 0 | 0 | 0 | 10 | 10 | 0 | 0 | 0 | 25 | 25 |
| Total | 7,075 | 8,904 | 4,645 | 11 | 20,635 | 8,212 | 9,566 | 5,123 | 26 | 22,926 |
Neste Corporation – Financial statements release for 2024
NESTE
REVENUE BY OPERATING SEGMENT
| 10-12/2024 | Renewable Products | Oil Products | Marketing & Services | Others | Eliminations | Total |
|---|---|---|---|---|---|---|
| External revenue | 1,819 | 2,650 | 1,098 | 2 | 0 | 5,568 |
| Internal revenue | 62 | 674 | 10 | 37 | -783 | 0 |
| Total revenue | 1,880 | 3,324 | 1,108 | 39 | -783 | 5,568 |
| 10-12/2023 | Renewable Products | Oil Products | Marketing & Services | Others | Eliminations | Total |
| External revenue | 2,201 | 2,735 | 1,361 | 6 | 0 | 6,303 |
| Internal revenue | 62 | 1,015 | 13 | 17 | -1,106 | 0 |
| Total revenue | 2,263 | 3,750 | 1,374 | 22 | -1,106 | 6,303 |
| 1-12/2024 | Renewable Products | Oil Products | Marketing & Services | Others | Eliminations | Total |
| External revenue | 7,075 | 8,904 | 4,645 | 11 | 0 | 20,635 |
| Internal revenue | 246 | 2,925 | 42 | 114 | -3,326 | 0 |
| Total revenue | 7,321 | 11,829 | 4,687 | 125 | -3,326 | 20,635 |
| 1-12/2023 | Renewable Products | Oil Products | Marketing & Services | Others | Eliminations | Total |
| External revenue | 8,212 | 9,566 | 5,123 | 26 | 0 | 22,926 |
| Internal revenue | 254 | 3,720 | 45 | 75 | -4,094 | 0 |
| Total revenue | 8,466 | 13,285 | 5,168 | 100 | -4,094 | 22,926 |
REVENUE BY OPERATING DESTINATION
| External revenue | 10-12/2024 | 10-12/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Renewable Products | Oil Products | Marketing & Services | Others | Total | Renewable Products | Oil Products | Marketing & Services | Others | Total | |
| Finland | 9 | 541 | 840 | 2 | 1,392 | 96 | 501 | 1,085 | 6 | 1,688 |
| Other Nordic countries | 182 | 327 | 0 | 0 | 510 | 547 | 264 | 1 | 0 | 811 |
| Baltic Rim | 25 | 327 | 257 | 0 | 608 | 18 | 145 | 275 | 0 | 437 |
| Other European countries | 696 | 378 | 1 | 0 | 1,074 | 499 | 777 | 1 | 0 | 1,277 |
| USA | 857 | 906 | 0 | 0 | 1,763 | 939 | 806 | 0 | 0 | 1,745 |
| Other countries | 50 | 171 | 0 | 0 | 221 | 102 | 242 | 0 | 0 | 344 |
| Total | 1,819 | 2,650 | 1,098 | 2 | 5,568 | 2,201 | 2,735 | 1,361 | 6 | 6,303 |
| 1-12/2024 | 1-12/2023 | |||||||||
| External revenue | Renewable Products | Oil Products | Marketing & Services | Others | Total | Renewable Products | Oil Products | Marketing & Services | Others | Total |
| Finland | 172 | 1,849 | 3,609 | 11 | 5,641 | 406 | 2,021 | 4,063 | 26 | 6,515 |
| Other Nordic countries | 722 | 1,187 | 2 | 0 | 1,911 | 2,175 | 1,101 | 2 | 0 | 3,278 |
| Baltic Rim | 56 | 676 | 1,031 | 0 | 1,763 | 40 | 620 | 1,055 | 0 | 1,715 |
| Other European countries | 2,392 | 1,841 | 3 | 0 | 4,236 | 1,984 | 2,789 | 3 | 0 | 4,775 |
| USA | 3,556 | 2,687 | 0 | 0 | 6,242 | 3,437 | 2,203 | 0 | 0 | 5,640 |
| Other countries | 177 | 664 | 0 | 0 | 841 | 170 | 832 | 0 | 0 | 1,002 |
| Total | 7,075 | 8,904 | 4,645 | 11 | 20,635 | 8,212 | 9,566 | 5,123 | 26 | 22,926 |
Neste Corporation – Financial statements release for 2024
NESTE
3. SEGMENT INFORMATION
Neste's operations are grouped into three reporting segments: Renewable Products, Oil Products and Marketing & Services. Others consists of common corporate and functional costs. The performance of the reportable segments are reviewed regularly by the chief operating decision-maker, Neste President & CEO, to assess the performance and to decide on allocation of resources.
| REVENUE | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
|---|---|---|---|---|
| Renewable Products | 1,880 | 2,263 | 7,321 | 8,466 |
| Oil Products | 3,324 | 3,750 | 11,829 | 13,285 |
| Marketing & Services | 1,108 | 1,374 | 4,687 | 5,168 |
| Others | 39 | 22 | 125 | 100 |
| Eliminations | -783 | -1,106 | -3,326 | -4,094 |
| Total | 5,568 | 6,303 | 20,635 | 22,926 |
| OPERATING PROFIT | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- |
| Renewable Products | -205 | 245 | -347 | 568 |
| Oil Products | 108 | 159 | 345 | 1,068 |
| Marketing & Services | 16 | 13 | 72 | 84 |
| Others | -27 | -9 | -51 | -41 |
| Eliminations | -3 | 7 | 6 | 2 |
| Total | -110 | 415 | 25 | 1,682 |
| EBITDA | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- |
| Renewable Products | -56 | 393 | 242 | 1,049 |
| Oil Products | 198 | 247 | 667 | 1,375 |
| Marketing & Services | 22 | 24 | 100 | 117 |
| Others | -19 | 2 | -10 | 5 |
| Eliminations | -3 | 7 | 6 | 2 |
| Total | 143 | 672 | 1,005 | 2,548 |
| COMPARABLE EBITDA | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- |
| Renewable Products | 13 | 433 | 514 | 1,906 |
| Oil Products | 153 | 330 | 633 | 1,434 |
| Marketing & Services | 22 | 25 | 101 | 118 |
| Others | -18 | 3 | -1 | -2 |
| Eliminations | -3 | 7 | 6 | 2 |
| Total | 168 | 797 | 1,252 | 3,458 |
| DEPRECIATION, AMORTIZATION AND IMPAIRMENTS | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- |
| Renewable Products | 149 | 148 | 589 | 480 |
| Oil Products | 90 | 87 | 322 | 307 |
| Marketing & Services | 7 | 11 | 28 | 33 |
| Others | 8 | 11 | 41 | 46 |
| Eliminations | 0 | 0 | 0 | 0 |
| Total | 254 | 257 | 980 | 866 |
| CAPITAL EXPENDITURE AND INVESTMENTS IN SHARES | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- |
| Renewable Products | 325 | 427 | 1,446 | 1,915 |
| Oil Products | 44 | 159 | 453 | 336 |
| Marketing & Services | 17 | 5 | 39 | 38 |
| Others | 17 | 24 | 69 | 61 |
| Eliminations | 0 | 0 | 0 | 0 |
| Total | 402 | 616 | 2,006 | 2,351 |
| TOTAL ASSETS | 31 Dec 2024 | 31 Dec 2023 | ||
| --- | --- | --- | ||
| Renewable Products | 9,943 | 9,275 | ||
| Oil Products | 3,581 | 3,849 | ||
| Marketing & Services | 559 | 647 | ||
| Others | 357 | 480 | ||
| Unallocated assets | 1,474 | 2,131 | ||
| Eliminations | -333 | -397 | ||
| Total | 15,581 | 15,983 |
Neste Corporation – Financial statements release for 2024
NESTE
| 31 Dec | 31 Dec | |
|---|---|---|
| NET ASSETS | 2024 | 2023 |
| Renewable Products | 9,064 | 8,069 |
| Oil Products | 2,300 | 2,384 |
| Marketing & Services | 196 | 236 |
| Others | 88 | 104 |
| Eliminations | -5 | -11 |
| Total | 11,646 | 10,783 |
| 31 Dec | 31 Dec | |
| TOTAL LIABILITIES | 2024 | 2023 |
| Renewable Products | 1,891 | 2,046 |
| Oil Products | 1,310 | 1,521 |
| Marketing & Services | 421 | 473 |
| Others | 280 | 384 |
| Unallocated liabilities | 4,590 | 3,483 |
| Eliminations | -328 | -387 |
| Total | 8,164 | 7,520 |
| 31 Dec | 31 Dec | |
| RETURN ON NET ASSETS, % | 2024 | 2023 |
| Renewable Products | -4.0 | 7.5 |
| Oil Products | 14.0 | 42.6 |
| Marketing & Services | 30.9 | 34.6 |
| 31 Dec | 31 Dec | |
| COMPARABLE RETURN ON NET ASSETS, % | 2024 | 2023 |
| Renewable Products | -0.9 | 18.9 |
| Oil Products | 13.2 | 45.0 |
| Marketing & Services | 31.4 | 35.2 |
Neste Corporation – Financial statements release for 2024
NESTE
QUARTERLY SEGMENT INFORMATION
| QUARTERLY REVENUE | 10-12/2024 | 7-9/2024 | 4-6/2024 | 1-3/2024 | 10-12/2023 | 7-9/2023 | 4-6/2023 | 1-3/2023 |
|---|---|---|---|---|---|---|---|---|
| Renewable Products | 1,880 | 1,823 | 1,851 | 1,766 | 2,263 | 2,197 | 2,164 | 1,842 |
| Oil Products | 3,324 | 3,399 | 2,436 | 2,669 | 3,750 | 3,442 | 2,919 | 3,174 |
| Marketing & Services | 1,108 | 1,180 | 1,165 | 1,234 | 1,374 | 1,315 | 1,189 | 1,290 |
| Others | 39 | 43 | 24 | 18 | 22 | 17 | 30 | 31 |
| Eliminations | -783 | -822 | -834 | -887 | -1,106 | -998 | -951 | -1,039 |
| Total | 5,568 | 5,624 | 4,642 | 4,801 | 6,303 | 5,973 | 5,351 | 5,298 |
| QUARTERLY OPERATING PROFIT | 10-12/2024 | 7-9/2024 | 4-6/2024 | 1-3/2024 | 10-12/2023 | 7-9/2023 | 4-6/2023 | 1-3/2023 |
| Renewable Products | -205 | 6 | -101 | -47 | 245 | 130 | 158 | 36 |
| Oil Products | 108 | 17 | -24 | 243 | 159 | 527 | 135 | 246 |
| Marketing & Services | 16 | 25 | 17 | 14 | 13 | 34 | 21 | 16 |
| Others | -27 | 1 | -14 | -11 | -9 | -17 | -6 | -10 |
| Eliminations | -3 | 5 | 4 | 8 | 7 | -6 | 4 | -3 |
| Total | -110 | 54 | -119 | 200 | 415 | 669 | 312 | 285 |
| QUARTERLY EBITDA | 10-12/2024 | 7-9/2024 | 4-6/2024 | 1-3/2024 | 10-12/2023 | 7-9/2023 | 4-6/2023 | 1-3/2023 |
| Renewable Products | -56 | 151 | 46 | 101 | 393 | 256 | 276 | 124 |
| Oil Products | 198 | 104 | 46 | 318 | 247 | 602 | 210 | 317 |
| Marketing & Services | 22 | 32 | 24 | 22 | 24 | 42 | 29 | 23 |
| Others | -19 | 9 | -1 | 1 | 2 | -4 | 5 | 2 |
| Eliminations | -3 | 5 | 4 | 0 | 7 | -6 | 4 | -3 |
| Total | 143 | 301 | 119 | 442 | 672 | 889 | 523 | 463 |
| QUARTERLY COMPARABLE EBITDA | 10-12/2024 | 7-9/2024 | 4-6/2024 | 1-3/2024 | 10-12/2023 | 7-9/2023 | 4-6/2023 | 1-3/2023 |
| Renewable Products | 13 | 106 | 152 | 242 | 433 | 545 | 513 | 415 |
| Oil Products | 153 | 141 | 62 | 278 | 330 | 472 | 239 | 393 |
| Marketing & Services | 22 | 32 | 24 | 23 | 25 | 42 | 29 | 23 |
| Others | -18 | 9 | -1 | 8 | 3 | -6 | 0 | 2 |
| Eliminations | -3 | 5 | 4 | 0 | 7 | -6 | 4 | -3 |
| Total | 168 | 293 | 240 | 551 | 797 | 1,047 | 784 | 830 |
| QUARTERLY DEPRECIATION, AMORTIZATION AND IMPAIRMENTS | 10-12/2024 | 7-9/2024 | 4-6/2024 | 1-3/2024 | 10-12/2023 | 7-9/2023 | 4-6/2023 | 1-3/2023 |
| Renewable Products | 149 | 145 | 147 | 148 | 148 | 125 | 119 | 89 |
| Oil Products | 90 | 87 | 70 | 75 | 87 | 75 | 74 | 71 |
| Marketing & Services | 7 | 7 | 7 | 7 | 11 | 7 | 8 | 7 |
| Others | 8 | 8 | 13 | 12 | 11 | 13 | 11 | 11 |
| Eliminations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 254 | 247 | 238 | 242 | 257 | 220 | 212 | 178 |
| QUARTERLY CAPITAL EXPENDITURE AND INVESTMENTS IN SHARES | 10-12/2024 | 7-9/2024 | 4-6/2024 | 1-3/2024 | 10-12/2023 | 7-9/2023 | 4-6/2023 | 1-3/2023 |
| Renewable Products | 325 | 385 | 354 | 382 | 427 | 385 | 390 | 713 |
| Oil Products | 44 | 65 | 241 | 103 | 159 | 58 | 48 | 71 |
| Marketing & Services | 17 | 9 | 5 | 8 | 5 | 8 | 20 | 5 |
| Others | 17 | 12 | 21 | 19 | 24 | 15 | 11 | 11 |
| Eliminations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 402 | 472 | 622 | 511 | 616 | 467 | 469 | 799 |
| 31 Dec | 30 Sep | 30 Jun | 31 Mar | 31 Dec | 30 Sep | 30 Jun | 31 Mar | |
| QUARTERLY NET ASSETS | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 |
| Renewable Products | 9,064 | 9,082 | 8,954 | 8,594 | 8,069 | 7,887 | 7,868 | 7,411 |
| Oil Products | 2,300 | 2,658 | 2,482 | 2,467 | 2,384 | 2,654 | 2,394 | 2,435 |
| Marketing & Services | 198 | 198 | 245 | 279 | 236 | 235 | 254 | 268 |
| Others | 88 | -336 | -362 | -822 | 104 | -454 | -300 | -894 |
| Eliminations | -5 | -3 | -9 | -14 | -11 | -19 | -14 | -19 |
| Total | 11,646 | 11,601 | 11,310 | 10,504 | 10,783 | 10,304 | 10,202 | 9,201 |
Neste Corporation – Financial statements release for 2024
NESTE
4. RECONCILIATION OF KEY FIGURES TO IFRS FINANCIAL STATEMENTS
RECONCILIATION BETWEEN COMPARABLE EBITDA, EBITDA AND OPERATING PROFIT
| Group | 10-12/2024 | 10-12/2023 | 7-9/2024 | 1-12/2024 | 1-12/2023 |
|---|---|---|---|---|---|
| COMPARABLE EBITDA | 168 | 797 | 293 | 1,252 | 3,458 |
| inventory valuation gains/losses | 63 | -255 | -176 | -359 | -827 |
| changes in the fair value of open commodity and currency derivatives | -63 | 128 | 141 | 84 | -98 |
| capital gains and losses | -4 | 0 | 0 | -2 | 7 |
| other adjustments 1) | -2 | 3 | 43 | 29 | 8 |
| EBITDA | 143 | 672 | 301 | 1,005 | 2,548 |
| depreciation, amortization and impairments | -254 | -257 | -247 | -980 | -866 |
| OPERATING PROFIT | -110 | 415 | 54 | 25 | 1,682 |
1) One-off costs related to restructuring in the first quarter totaling EUR 13 million and release of an environmental provision in the third quarter totaling EUR 46 million have been eliminated from Comparable EBITDA.
| Renewable Products | 10-12/2024 | 10-12/2023 | 7-9/2024 | 1-12/2024 | 1-12/2023 |
|---|---|---|---|---|---|
| COMPARABLE EBITDA | 13 | 433 | 106 | 514 | 1,906 |
| inventory valuation gains/losses | 6 | -156 | -82 | -352 | -784 |
| changes in the fair value of open commodity and currency derivatives | -75 | 116 | 129 | 86 | -73 |
| capital gains and losses | 0 | 0 | 0 | 0 | 0 |
| other adjustments | 0 | 0 | -3 | -6 | 0 |
| EBITDA | -56 | 393 | 151 | 242 | 1,049 |
| depreciation, amortization and impairments | -149 | -148 | -145 | -589 | -480 |
| OPERATING PROFIT | -205 | 245 | 6 | -347 | 568 |
| Oil Products | 10-12/2024 | 10-12/2023 | 7-9/2024 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- | --- |
| COMPARABLE EBITDA | 153 | 330 | 141 | 633 | 1,434 |
| inventory valuation gains/losses | 57 | -99 | -94 | -7 | -43 |
| changes in the fair value of open commodity and currency derivatives | -8 | 12 | 12 | -2 | -25 |
| capital gains and losses | -4 | 0 | 0 | -2 | 5 |
| other adjustments | 0 | 4 | 46 | 45 | 4 |
| EBITDA | 198 | 247 | 104 | 667 | 1,375 |
| depreciation, amortization and impairments | -90 | -87 | -87 | -322 | -307 |
| OPERATING PROFIT | 108 | 159 | 17 | 345 | 1,068 |
| Marketing & Services | 10-12/2024 | 10-12/2023 | 7-9/2024 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- | --- |
| COMPARABLE EBITDA | 22 | 25 | 32 | 101 | 118 |
| inventory valuation gains/losses | 0 | 0 | 0 | 0 | 0 |
| changes in the fair value of open commodity and currency derivatives | 0 | 0 | 0 | 0 | 0 |
| capital gains and losses | 0 | 0 | 0 | 0 | 0 |
| other adjustments | 0 | -1 | 0 | -1 | -1 |
| EBITDA | 22 | 24 | 32 | 100 | 117 |
| depreciation, amortization and impairments | -7 | -11 | -7 | -28 | -33 |
| OPERATING PROFIT | 16 | 13 | 25 | 72 | 84 |
| Others | 10-12/2024 | 10-12/2023 | 7-9/2024 | 1-12/2024 | 1-12/2023 |
| --- | --- | --- | --- | --- | --- |
| COMPARABLE EBITDA | -18 | 3 | 9 | -1 | -2 |
| inventory valuation gains/losses | 0 | 0 | 0 | 0 | 0 |
| changes in the fair value of open commodity and currency derivatives | 0 | 0 | 0 | 0 | 0 |
| capital gains and losses | 0 | 0 | 0 | 0 | 2 |
| other adjustments | -2 | 0 | 0 | -9 | 5 |
| EBITDA | -19 | 2 | 9 | -10 | 5 |
| depreciation, amortization and impairments | -8 | -11 | -8 | -41 | -46 |
| OPERATING PROFIT | -27 | -9 | 1 | -51 | -41 |
Neste Corporation – Financial statements release for 2024
NESTE
RECONCILIATION BETWEEN COMPARABLE EBITDA AND COMPARABLE NET PROFIT
| 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 | |
|---|---|---|---|---|
| COMPARABLE EBITDA | 168 | 797 | 1,252 | 3,458 |
| depreciation, amortization and impairments | -254 | -257 | -980 | -866 |
| items in depreciation, amortization and impairments affecting comparability | 15 | 0 | 15 | 0 |
| total financial income and expenses | -50 | -9 | -138 | -86 |
| income tax expense | 25 | -6 | 19 | -160 |
| non-controlling interests | 0 | 0 | 0 | -3 |
| tax on items affecting comparability | -6 | -17 | -37 | -128 |
| COMPARABLE NET PROFIT | -101 | 508 | 131 | 2,216 |
RECONCILIATION OF COMPARABLE RETURN ON AVERAGE CAPITAL EMPLOYED, AFTER TAX (COMPARABLE ROACE), %
| 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|
| COMPARABLE EBITDA, LAST 12 MONTHS | 1,252 | 3,458 |
| depreciation, amortization and impairments | -980 | -866 |
| items in depreciation, amortization and impairments affecting comparability | 15 | 0 |
| financial income | 47 | 45 |
| exchange rate and fair value gains and losses | -29 | -9 |
| income tax expense | 19 | -160 |
| tax on other items affecting comparable ROACE | -59 | -145 |
| Comparable net profit, net of tax | 266 | 2,324 |
| Capital employed average | 12,398 | 11,514 |
| Assets under construction average | -1,756 | -1,789 |
| COMPARABLE RETURN ON AVERAGE CAPITAL EMPLOYED, AFTER TAX (COMPARABLE ROACE), % | 2.5 | 23.9 |
RECONCILIATION OF EQUITY-TO-ASSETS RATIO, %
| 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|
| Total equity | 7,417 | 8,463 |
| Total assets | 15,581 | 15,983 |
| Advances received | -42 | -39 |
| EQUITY-TO-ASSETS RATIO, % | 47.7 | 53.1 |
RECONCILIATION OF NET WORKING CAPITAL IN DAYS OUTSTANDING
| 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|
| Operative receivables | 1,488 | 1,788 |
| Inventories | 2,898 | 3,366 |
| Operative liabilities | -2,159 | -2,581 |
| Net working capital | 2,227 | 2,573 |
| Revenue, last 12 months | 20,635 | 22,926 |
| NET WORKING CAPITAL IN DAYS OUTSTANDING | 39.4 | 41.0 |
Neste Corporation – Financial statements release for 2024
NESTE
- CHANGES IN GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT, AND COMMITMENTS
| CHANGES IN GOODWILL, INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT | 31 Dec | 31 Dec |
|---|---|---|
| 2024 | 2023 | |
| Opening balance | 8,467 | 7,140 |
| Additions | 2,005 | 2,160 |
| Acquisitions | 0 | 176 |
| Depreciation, amortization and impairments | -980 | -866 |
| Disposals | -56 | -83 |
| Translation differences | 114 | -60 |
| Closing balance | 9,550 | 8,467 |
| 31 Dec | 31 Dec | |
| COMMITMENTS | 2024 | 2023 |
| Commitments to purchase property, plant and equipment, and intangible assets | 585 | 710 |
| Other commitments | 5 | 8 |
| Total | 590 | 718 |
Capital commitments are mainly related to an expansion project in the refinery in Rotterdam which will extend Neste's renewable products overall capacity.
- CHANGES IN INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
| INVESTMENTS IN ASSOCIATES AND JOINT VENTURES | 31 Dec | 31 Dec |
|---|---|---|
| 2024 | 2023 | |
| Opening balance | 58 | 63 |
| Share of profit (loss) of associates and joint ventures | -9 | 1 |
| Share of other comprehensive income of investments accounted for using the equity method | -2 | -4 |
| Investments | 5 | 0 |
| Translation differences | 1 | -1 |
| Closing balance | 53 | 58 |
- INTEREST-BEARING NET DEBT AND LIQUIDITY
| INTEREST-BEARING NET DEBT | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Non-current interest-bearing liabilities 1) | 4,362 | 3,487 |
| Current interest-bearing liabilities 2) | 786 | 581 |
| Interest-bearing liabilities | 5,147 | 4,068 |
| Current investments | 0 | -5 |
| Cash and cash equivalents | -955 | -1,575 |
| Liquid funds | -955 | -1,580 |
| Interest-bearing net debt | 4,192 | 2,488 |
1) Including EUR 890 million of lease liabilities at 31 Dec 2024 (31 Dec 2023 EUR 768 million)
2) Including EUR 224 million of lease liabilities at 31 Dec 2024 (31 Dec 2023 EUR 199 million)
| LIQUIDITY, UNUSED COMMITTED CREDIT FACILITIES AND DEBT PROGRAMS | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Liquid funds | 955 | 1,580 |
| Unused committed credit facilities | 1,925 | 1,900 |
| Total | 2,880 | 3,480 |
| In addition: Unused commercial paper program (uncommitted) | 89 | 400 |
Neste Corporation – Financial statements release for 2024
NESTE
8. FINANCIAL INSTRUMENTS
No significant changes were made to Neste's risk management policies during the reporting period. Aspects of Neste's financial risk management objective and policies are consistent with those disclosed in the consolidated financial statements 2023.
| 31 Dec 2024 | 31 Dec 2023 | |||
|---|---|---|---|---|
| Interest rate and currency derivatives | Nominal value | Net fair value | Nominal value | Net fair value |
| Interest rate swaps | ||||
| Hedge accounting | 850 | 23 | 550 | 26 |
| Non-hedge accounting | 0 | 0 | 0 | 0 |
| Currency derivatives | ||||
| Hedge accounting | 3,148 | -86 | 2,861 | 48 |
| Non-hedge accounting | 2,018 | -22 | 1,849 | 14 |
| Commodity derivatives | 31 Dec 2024 | 31 Dec 2023 | ||
| --- | --- | --- | --- | --- |
| Volume GWh | Volume million bbl | Net fair value | Volume GWh | |
| Sales contracts | ||||
| Non-hedge accounting | 133 | 16 | -6 | 0 |
| Purchase contracts | ||||
| Non-hedge accounting | 3,221 | 17 | -1 | 3,029 |
Commodity derivative contracts include oil, vegetable oil, electricity, freight, and gas derivatives.
The fair values of derivative financial instruments subject to public trading are based on market prices as of the balance sheet date. The fair values of other derivative financial instruments are based on the present value of cash flows resulting from the contracts, and, in respect of options, on evaluation models. The amounts also include unsettled closed positions. Derivative financial instruments are mainly used to manage Neste's currency, interest rate and price risk.
Financial assets and liabilities by measurement categories and fair value hierarchy as of December 31, 2024
| Balance sheet item | Fair value through OCI | Fair value through profit or loss | Amortized cost | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|---|---|---|
| Non-current financial assets | ||||||||
| Non-current receivables | 128 | 128 | 128 | |||||
| Derivative financial instruments | 33 | 33 | 33 | 0 | 33 | |||
| Other financial assets | 30 | 10 | 40 | 40 | 40 | |||
| Current financial assets | ||||||||
| Trade and other receivables 1) | 1,490 | 1,490 | 1,490 | |||||
| Derivative financial instruments | 27 | 85 | 113 | 113 | 22 | 90 | ||
| Current investments | 0 | 0 | ||||||
| Cash and cash equivalents | 955 | 955 | 955 | |||||
| Financial assets | 57 | 128 | 2,573 | 2,758 | 2,758 | |||
| Non-current financial liabilities | ||||||||
| Interest-bearing liabilities | 4,362 | 4,362 | 4,348 | 2,101 | 2,247 | |||
| Derivative financial instruments | 6 | 2 | 8 | 8 | 8 | |||
| Other non-current liabilities 1) | 14 | 17 | 32 | 32 | 14 | |||
| Current financial liabilities | ||||||||
| Interest-bearing liabilities | 786 | 786 | 786 | 786 | ||||
| Derivative financial instruments | 114 | 116 | 230 | 230 | 46 | 184 | ||
| Trade and other payables 1) | 13 | 2,080 | 2,092 | 2,092 | 13 | |||
| Financial liabilities | 120 | 145 | 7,244 | 7,509 | 7,495 |
1) excluding non-financial items
Derivative financial instruments under Fair value through OCI-category meet criteria for hedge accounting.
Financial instruments that are measured at fair value in the balance sheet and the interest-bearing liabilities are presented according to fair value measurement hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: inputs for the asset or liability that is not based on observable market data.
Interest-bearing liabilities at level 1 consist of listed bonds. Derivative financial instruments at level 1 consist of commodity derivatives which are directly valued based on exchange quotations. Other financial assets in fair value through profit and loss category include unlisted other investments of EUR 10 million. Other financial assets in fair value through other comprehensive income category include unlisted shares of EUR 30 million. Other financial liabilities in fair value through profit and loss category mainly consist contingent considerations of acquisitions made in prior years. Fair values are determined in accordance with IFRS 13.
During the reporting period there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurements.
Neste Corporation – Financial statements release for 2024
NESTE
9. RELATED PARTY TRANSACTIONS
Neste has a related party relationship with its subsidiaries, joint arrangements, associates and the entities controlled by Neste's controlling shareholder the State of Finland. Related party includes also the members of the Board of Directors, the President and CEO, and other members of the Neste Leadership Team (key management persons), close members of the families of the mentioned key management persons, and entities controlled or jointly controlled by the mentioned key management persons or close members of those persons' families.
Parent company of Neste is Neste Corporation. The transactions between the Company, its subsidiaries, and joint operations, which are related parties of the Company, have been eliminated during consolidation and are not disclosed in this note. Details of transactions between Neste and other related parties are disclosed below. All related party transactions are on an arm's length basis.
| 31 Dec | 31 Dec | |
|---|---|---|
| Transactions carried out with joint ventures and other related parties | 2024 | 2023 |
| Sales of goods and services | 316 | 260 |
| Purchases of goods and services | 341 | 256 |
| Financial income and expenses | 6 | 5 |
| Receivables | 144 | 145 |
| Liabilities | 11 | 9 |
10. CONTINGENT LIABILITIES
| Contingent liabilities | 31 Dec | 31 Dec |
|---|---|---|
| 2024 | 2023 | |
| On own behalf for commitments | ||
| Real estate mortgages | 26 | 26 |
| Other contingent liabilities | 24 | 24 |
| Total | 50 | 50 |
| On behalf of joint arrangements | ||
| Pledged assets | 119 | 114 |
| Total | 119 | 114 |
| On behalf of others | ||
| Guarantees | 1 | 1 |
| Total | 1 | 1 |
| Total | 170 | 164 |
11. DISPUTES AND POTENTIAL LITIGATIONS
Neste is involved in legal proceedings and disputes incidental to its business. In management's opinion, the outcome of these cases is difficult to predict but not likely to have material effect on the Neste's financial position.
12. EVENTS AFTER THE REPORTING PERIOD
On 13 February, Neste announced a new performance improvement program, and updated financial targets and capital allocation for 2025–2026 as well as Board's dividend proposal for the year 2024. In 2025–2026, Neste plans to refocus from growth and development to efficiency and profitability, including capital discipline. To improve profitability and cost-competitiveness, Neste plans to further simplify its operating model and increase internal efficiency. As a result, the company starts change negotiations that cover Oil Products and Renewable Products business areas and all global functions, targeting total annual cost savings of approximately EUR 65 million. The planned organizational changes are expected to lead to a permanent reduction of approximately 600 positions, of which approximately 450 in Finland.
Neste Corporation – Financial statements release for 2024
nESTE
Change runs on renewables