Finland's Neste Q3 core profit beats estimates (updated)

Neste Oyj

29/10/2025 07:34

Adds shares in paragraph 4, renewable fuel sales in paragraphs 6, 8, background in 9

Oct 29 (Reuters) - Finnish biofuel maker and oil refiner Neste NESTE.HE posted a better-than expected core profit for the third quarter of 2025 on Wednesday, citing stronger distillate prices in Europe and higher demand for its products.

The company's comparable operating profit before depreciation and amortization (EBITDA) jumped 81% year-on-year to 531 million euros ($619 million) and came above the 471.5 million expected on average by analysts in a company-provided poll.

"Due to healthy renewable diesel reference prices in Europe during the third quarter, more capacity was directed to serve this market," Neste said in a statement.

Shares in Neste were up 3% at 0802 GMT to their highest price in more than a year.

It added that it still expects annual sales volumes both in its renewable and oil products businesses to be higher than in 2024. However, it reiterated that the biofuel market would remain oversupplied in 2025.

Neste said it saw higher sales volumes and margins in its two main divisions in the quarter compared to the year-ago period.

The sales margin in the renewable products business, which produces renewable diesel and sustainable aviation fuel (SAF) came in the quarter at $480, above analysts' average expectation of $440.

   Oversupply in the renewable fuel market has been a main concern for Neste, leading it to cut its margin outlook three times last year and reduce around 510 jobs in the first half of 2025.

Sales of SAF, which Neste supplies to airlines such as United Airlines and Delta, rose 124% to 251,000 tonnes, against 260,000 seen by analysts.

Under the European Union's regulations, fuel uplift airports in the region must contain at least 2% of SAF, with a gradual increase in the mandatory amount scheduled for upcoming years.

 (Reporting by Boleslaw Lasocki, editing by Anna Pruchnicka)

 ((boleslaw.lasocki@thomsonreuters.com))