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Investing.com -- Neste Oyj (HE:NESTE) shares surged more than 17% on Thursday after the company posted second-quarter earnings that topped expectations, lifted by higher margins and volumes in its renewable products division.
Group comparable EBITDA reached €341 million, 13% above company consensus and 3% ahead of Jefferies’ estimate.
Net profit was €46 million, surpassing the consensus forecast of €19 million. Renewable Products posted a comparable EBITDA of €174 million, compared to a consensus of €105 million.
The segment’s sales margin came in at $361 per ton, above the $329 per ton forecast. Sales volumes reached 1,096 kilotons, ahead of the expected 1,034 kilotons.
Sustainable aviation fuel sales rose to 233 kilotons from 130 kilotons in the first quarter.
Oil Products underperformed, with comparable EBITDA of €135 million, 14% below the €157 million consensus.
The refining margin stood at $10.0 per barrel, under the $11.5 per barrel forecast, while sales volumes increased to 3,021 kilotons from an expected 2,838 kilotons.
Marketing and Services reported a comparable EBITDA of €32 million, topping the €24 million consensus.
Cash flow from operations before changes in working capital was €252 million, in line with the €254 million consensus.
Capital expenditure totaled €220 million, 28% below expectations of €307 million. Net debt fell by approximately €83 million quarter-over-quarter, supported by a €185 million working capital inflow.
The company’s leverage ratio remained at 38%, unchanged from the previous quarter.
Neste maintained its full-year guidance. The company expects higher sales volumes in Renewable Products and Oil Products, and lower fixed costs year-over-year, excluding one-off items.
Capital expenditure guidance was revised to €1.1 billion to €1.2 billion, down from a previous range of €1.1 billion to €1.3 billion. The consensus for capex is €1.18 billion.