Finland's Neste Q3 revenue and EBITDA jump on strong renewables
Finland's Neste Q3 revenue and EBITDA jump on strong renewables
Overview
Finland renewable fuels producer's Q3 revenue and EBITDA rose sharply on strong operational performance
Record renewable products sales volumes and high margins boosted results
Company approved new dividend policy targeting annual payout of 20-40% of EPS
Outlook
Neste sees 2026 Renewable Products sales volumes about flat with 2025
Company expects 2026 Oil Products sales volumes to be lower than 2025 due to planned maintenance
Neste estimates 2026 capital expenditure excluding M&A at about EUR 1.2 bln
Result Drivers
RENEWABLE PRODUCTS SALES - Record quarterly sales volume and high sales margins in Renewable Products drove results, per CEO Heikki Malinen
MIDDLE DISTILLATE MARKETS - Exceptionally strong middle distillate prices and wide cracks boosted Oil Products margins
PERFORMANCE IMPROVEMENT PROGRAM - Performance improvement program contributed EUR 103 mln of EBITDA increase in Q3
Company press release: ID:nWkr5CZsH4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| EUR 6.55 bln |
|
Q3 Comparable EBITDA |
| EUR 1.56 bln |
|
Q3 EBITDA |
| EUR 1.58 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"
Wall Street's median 12-month price target for Neste Oyj is €38.00, about 29.7% above its October 28 closing price of €29.30
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Oct 28 - Norway's Equinor Q3 adjusted operating income nearly doubles on higher output, gas prices
Oct 28 - Finland's Fortum Q3 revenue rises on higher nuclear generation volumes
Oct 29 - Spain's Repsol increases buybacks as Q3 profit soars above expectations
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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Finland's Neste Q3 revenue and EBITDA jump on strong renewables
Finland's Neste tops core profit expectations in third quarter
Brief: Neste: New Dividend Policy To Distribute 20-40% Of EPS As Dividends