Q4 2024 Neste Oyj Earnings Call Transcript
Key Points
- Neste OYJ (NTOIF) reported an increase in sales volumes for renewable products, indicating strong demand despite operational challenges.
- The company is investing heavily in growth, with EUR1.6 billion spent in 2024, including significant investments in Singapore and Rotterdam.
- Neste OYJ (NTOIF) is expanding its feedstock sourcing capabilities, with new offices in Brazil and activities in India to enhance supply chain resilience.
- The company successfully sold its first significant volumes to Canada, marking an expansion in its market reach.
- Neste OYJ (NTOIF) is focusing on improving operational efficiency and cost competitiveness, with a target of EUR350 million in EBITDA improvement by 2026.
- Neste OYJ (NTOIF) faced operational challenges in 2024, including unplanned outages in Singapore and Rotterdam, impacting production and sales margins.
- The company's financial performance in 2024 was unsatisfactory, with a significant drop in comparable EBITDA to EUR1.25 billion.
- The renewable products market is currently oversupplied, leading to challenging conditions and pressure on margins.
- Neste OYJ (NTOIF) is initiating change negotiations due to the need to reduce its fixed cost base, indicating potential workforce reductions.
- The company reported a negative cash flow before financing items for 2024, highlighting financial pressures.
Good afternoon, everyone, and welcome to Neste's Q4 and full year 2024 results webcast. Today, we are broadcasting you live from London where we will also be hosting our Capital Markets update later today.
I want to welcome you all to join the session also and the webcast link is available on our website. Since we have live audience here today, I would like to extend a warm welcome to all of you here in the room as well. My name is Riikka Toivonen, and I'm part of Neste's Investor Relations team. I will be your host for this afternoon.
Joining me today are Heikki Malinen, our President and CEO; and Andrew Hartmann, Neste's Interim CFO. We will begin with presentations followed by a Q&A session. As usual, we will also take questions from those joining us online. But today, since we have live audience, we will also take questions from the room. Presentation is available on our website, neste.com/investors.
Before we begin, please take a note of the disclaimer, as today's discussion will include forward-looking
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