Finland's Neste beats profit estimates on oil prices, biofuel demand (updated)

Neste Oyj

29/10/2026 07:25

Adds renewables volumes in paragraph 5, outlook comments in paragraph 6, Rotterdam expansion costs in paragraph 7.
Oct 29 (Reuters) - Finnish biofuel maker and oil refiner Neste NESTE.HE said on Thursday its quarterly core profit nearly tripled from a year ago, beating market expectations, driven by soaring oil prices and record high biofuel sales volumes.
Uncertainty over oil supply since the outbreak of the Iran war has driven up oil prices, which remain volatile, and prompted growing interest in renewable fuel.
Neste's comparable earnings before interest, taxes, depreciation and amortization rose 192% to €1.55 billion ($1.73 billion), while analysts in a company-compiled poll had expected €1.20 billion on average.
"The supply situation in global oil product markets remained tight and kept end product prices high, as the conflict in the Middle East and refinery outages in Russia continued to limit availability of end products, particularly middle distillates," Neste CEO Heikki Malinen said in a statement.
Sales volumes in Neste's renewable products business reached a record high of 1.29 million metric tons, while analysts had expected 1.10 million tons.
However, Neste still sees the unit's annual sales volumes at roughly last year's level, and Malinen said the company expected oil markets to remain volatile.
Neste will also face higher costs from its Rotterdam refinery expansion, which is aimed at building the world's largest renewable fuels production site. It now estimates capital spending for the project to be around €3 billion, against €2.5 billion projected earlier.
The company announced a new dividend policy, with an aim to distribute 20% to 40% of its earnings per share among shareholders.

(Reporting by Boleslaw Lasocki in Gdansk, editing by Milla Nissi-Prussak)
((boleslaw.lasocki@thomsonreuters.com))