In its interim report for January–September 2012, Neste Oil said that while the third-quarter performance of its Renewable Fuels business (NExBTL) improved by €38 million (US$49 million) from the corresponding period last year, the business still recorded a loss due to low margins, particularly during the first part of the quarter. This resulted in an operating loss of €19 million (US$24.6 million) for the business, compared to a €57-million (US$73.8-million) in 2011.
The price spread between different vegetable oils and renewable diesel producers’ margins improved towards the end of the quarter.
For the first nine months of 2012, Neste Oil reported losses of €54 million (US$70 million), compared to losses of €148 million (US$192 million) for the same period in 2011.
Neste expects Renewable Fuels’ results to improve compared to the third quarter, and to be close to breakeven. Approximately 60% of the fourth quarter margins were hedged during the summer, which limits our short-term capability to capture the full value of palm oil price decline, the company noted. The result is sensitive to market development, which has been very volatile in 2012.