Q2 2024 Neste Oyj Earnings Call Transcript
Key Points
- Neste OYJ (NTOIF) completed the major Porvoo turnaround as planned, demonstrating strong operational performance.
- The company expects the second quarter to be the weakest of the year, with substantial positive cash flow anticipated in the second half.
- Neste OYJ (NTOIF) is seeing positive momentum in the Sustainable Aviation Fuel (SAF) market, with expected sales growth in the third and fourth quarters.
- The Martinez JV utilization rate increased towards the end of the quarter, reaching around 75% of design capacity.
- Fixed costs were EUR 20 million lower quarter-on-quarter, reflecting efficiency improvements.
- Group comparable EBITDA was EUR 240 million in Q2, significantly lower than EUR 784 million in the same period last year.
- Renewable products sales margin weakened to $382 per ton from $800 per ton a year ago.
- The second quarter included a one-off valuation loss in bioticket and credit inventories totaling EUR 36 million.
- Sales volumes in renewable products were flat year-on-year, impacted by preparations for upcoming turnarounds.
- The oil products segment saw a comparable EBITDA of EUR 62 million, affected by the Porvoo turnaround.
Good day and thank you for standing by. Welcome to the second-quarter 2024 Neste Corporation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Anssi. Please go ahead.
Thank you. Good afternoon, ladies and gentlemen. Welcome to this conference call to discuss Neste's half-year results published this morning. I am Anssi Tammilehto, Head of Neste IR. And here with me on the call are President and CEO, Matti Lehmus; CFO, Martti Ala-Härkönen; and the business unit heads, Carl Nyberg of Renewable Products; and Markku Korvenranta of Oil Products.
We will be referring to the presentation that can be found on our website. And as always, please pay attention to the disclaimer since we will be making forward-looking statements in this call.
With these remarks, I would like to hand over to our President and CEO, Matti Lehmus, to start with the
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