Finance
Biofuel maker Neste expects limited impact from tariffs, but supply glut still weighs
Published by Global Banking and Finance Review
Posted on April 29, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on April 29, 2025
(Reuters) -Finnish biofuel maker and oil refiner Neste expects U.S. tariffs will have only a limited direct impact on its business, it said on Tuesday, but warned of continuous oversupply in renewable fuel and market volatility.
"We expect the European policymakers to safeguard a level playing field and competitiveness of European industrial companies," Neste Chief Executive Officer Heikki Malinen said in a statement.
Excess supply of renewable fuel, weak demand and global economic uncertainty have hit the profitability of the Finnish group, which warned in February of ongoing challenges ahead.
Neste, which has a joint venture with Marathon Petroleum in California, added that the U.S. market remained important for the company. However, the removal of Blender’s Tax Credit (BTC) has led the company to reoptimise its Singapore shipments, Malinen said. BTC was a clean fuel tax credits programme proposed by the Biden administration, but later scrapped.
The company's comparable first-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 62% from a year earlier to 210 million euros ($239.15 million), and Malinen said the performance remained "unsatisfactory".
Analysts in a company-provided consensus had expected 211.7 million euros on average.
Neste's sales margin in the renewables products segment fell to $310 per tonne in the quarter from $526 in the first quarter of 2024, but beat the average expectation of $242 per tonne.
But while the company said it still expects its margins to improve in 2025, it warned of the impact from oil price movements amid geopolitical uncertainty.
Earlier in April the group reduced about 510 positions globally, in a move expected to bring annual savings of around 65 million euros.
Neste shares were up more than 10% in Helsinki at 0725 GMT.
($1 = 0.8781 euros)
(Reporting by Boleslaw Lasocki; Editing by Andrew Heavens, Kirsten Donovan and Kate Mayberry)