Neste posts record renewable margin, Q2 profit slightly misses forecasts
Q2 Financial Results and Market Impact
Record-High Sales Margin in Renewable Products
July 24 (Reuters) - Finnish biofuel maker and oil refiner Neste reported second-quarter core profit slightly below market expectations on Friday, while posting a record-high sales margin in its renewable products business, driven by supply disruptions linked to Middle East conflicts.
Adjusted Operating Profit Performance
Neste's adjusted operating profit before interest, taxes, depreciation and amortization (EBITDA) more than tripled year-on-year to €1.20 billion ($1.37 billion) in the quarter. Analysts on average had expected €1.23 billion.
CEO Statement on Market Environment
"The conflict in the Middle East dominated global oil and product markets through most of the period, creating an exceptional market environment for Neste," Chief Executive Officer Heikki Malinen said in a statement.
Market Volatility and Demand Trends
Impact of Middle East Conflict on Oil Prices
While demand for renewable oil has risen sharply since the onset of the war in Iran, prolonged uncertainty over the possible closure of the Strait of Hormuz has kept fossil fuel prices volatile.
Reporting Credits
(Reporting by Boleslaw Lasocki in Gdansk, editing by Bartosz Dabrowski)
