Q1 2025 Neste Oyj Earnings Call Transcript
Key Points
- Neste OYJ (NTOIF) reported a solid operational performance with high utilization rates in its refineries, contributing to increased renewable sales volumes.
- The company successfully completed the SAF investment in Rotterdam, allowing for EU-based production of SAF, which is now operational.
- Neste OYJ (NTOIF) achieved an annualized run rate improvement of EUR52 million in its performance improvement program, indicating progress in cost reduction efforts.
- The company has established a strong relationship with DHL to provide low-carbon fuel, showcasing its commitment to expanding its customer base and partnerships.
- Neste OYJ (NTOIF) issued a new green bond of EUR700 million, strengthening its financial position and demonstrating proactive financial management.
- The company's total recordable incident frequency rate increased, indicating a need for improvement in employee safety, particularly in the refining business.
- Comparable EBITDA of EUR210 million was below expectations, reflecting challenges in achieving desired profitability levels.
- The mild winter negatively impacted sales volumes of winter products, affecting both the marketing and services side and the oil product side.
- High feedstock costs and pressure on sales prices led to a weak renewable diesel margin in Q1, highlighting challenges in maintaining profitability.
- The company's cash flow was negative EUR225 million in Q1, partly due to the need to normalize inventories, impacting overall financial performance.
Good afternoon, everybody. Welcome to discuss Neste's Q1 '25 results that were published this morning. My name is Anssi Tammilehto. I'm the Senior Vice President, Strategy, M&A and Investor Relations. And here with me on the call today are our President and CEO, Heikki Malinen; and our CFO, Eeva Sipila.
During this call, it's good to note that we will be making forward-looking statements in the presentation. So please make sure that you are familiar with the disclaimer also. And the agenda is as follows. First, we will go through the Q1 in brief, discussed by Heikki, then financial performance by Eeva Sipila. And then last but not least, the topicals and outlook by Heikki again. And finally, we will have also time for your questions and happy to have a discussion with all of you.
So with these remarks, happy to hand over to Heikki Malinen. Thank you.
Thank you, Anssi, and good afternoon, good morning,
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