Neste Oil’s interim report shows tumbling first quarter profits.
The firm’s operating profit totalled EUR 55million compared to last year’s Q1 figure of EUR 135million.
The firm credited a weak market and a nearly 50% reduction in reference margins for its oil products and renewable fuels.
Company president Matti Lievonen said: “The year started with a weak market situation, but Neste Oil’s good operational performance has continued, resulting in reasonable additional margins for the oil Products and renewable fuels businesses.
“We recorded a comparable operating profit of EUR 55 million during the first quarter compared to EUR 135 million in the corresponding period last year. The main reason for this decline was an approx. 45% reduction in reference margins at both oil products and renewable fuels.
“Oil products’ reference refining margin was seasonally low during the first quarter, and European demand for petroleum products remained soft and imports continued at high levels.”
The company produces a range of petroleum products, including renewable diesel.
