Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on NESTE OYJ. We currently have 8 research reports from 1 professional analysts.
|17Nov16 11:00||GNW||Neste Jacobs and Baltic Connector have signed a contract to provide Project Management Services for Baltic Connector pipeline|
|10Nov16 04:00||GNW||Neste Corporation: Notification of Managers' Transactions|
|25Oct16 07:00||GNW||Neste's Interim Report for January-September 2016|
|03Oct16 08:00||GNW||Neste's financial reporting in 2017|
|22Sep16 08:00||GNW||Maintenance turnaround at Neste's diesel production line in Porvoo brought forward|
|19Sep16 11:00||GNW||Neste Corporation: Notification of Managers' Transactions|
|16Sep16 11:00||GNW||Neste Corporation: Notification of managers' closely associated person's transactions|
Frequency of research reports
Research reports on
Q3 misses optimistic consensus
25 Oct 16
Q3 comparable operating profit was €264m (vs. €281m in Q3 15), below consensus estimates (at €278m). By division: 1) Oil Products: comparable operating profit was €120m (vs. €179m in Q3 15). The reference margin was $3.9/bbl (vs. the exceptional $9.1/bbl in Q3 15). The additional margin remained at $5.6/bbl (as in Q1 and Q2 16, vs. $4.1/bbl in Q3 15). The utilisation rate at Porvoo stood at 92% (vs. 96% in Q3 15) and Naantali’s at 63% (vs. 76%). 2) Renewable Products: comparable operating profit came in at €124m (vs. €75m in Q3 15), missing consensus estimates at €141m. The reference margin was $209/t (up from $194/t in Q3 15 and $168/t in Q2 16). The additional margin was $366/t (vs. $176/t in Q3 15 and $366/t in Q2 16). 3) Oil Retail: operating profit was €25m (vs. €27m in Q3 15). Outlook: - Oil Products: reference margins in Q4 are somewhat higher than in Q3; maintenance at the Porvoo refinery, however, should have a €30m impact on EBIT (anticipated from spring 2017); - Renewable Products: reference margin confirmed at around the average level of 2015, with a strong additional margin (also a confirmation); - Capex 2016 confirmed at €450m (higher than previous guidance at €400m). Q3 comparable net profit was €206m (vs. €227m in Q3 15), slightly below consensus (at €212m).
Renewable Products: boosted by the additional margin
28 Jul 16
Q2 comparable operating profit came in at €282m (vs. €78m in Q2 15), well above consensus estimates at €199m. Both Oil Products and Renewable products beat consensus. By division: 1) Oil Products: comparable operating profit was €149m (vs. €14m in Q2 15, when the Porvoo refinery underwent a turnaround), above consensus at €112m. The reference margin was $5.6/bbl (vs. $8.7/bbl in Q2 15). The additional margin remained at $5.6/bbl (as in Q1 16, vs. $2.1/bbl in Q2 15). The utilisation rate at Porvoo stood at 97% (vs. 28% in Q2 15), and at Naantali at 71% (vs. 63%). 2) Renewable Products: comparable operating profit was €119m (vs. €54m in Q2 15), beating analysts’ expectations at €68m. The reference margin was $168/t, (flattish yoy, up from $149/bbl in Q1 16). The additional margin came in at $366/t (vs. $168/t in Q2 15 and up from $270/t in Q1 16). 3) Oil Retail: operating profit was €23m (vs. €22m in Q2 15). Outlook: - Oil Products: reference margins in H2 lower than in H1 due to high global produt inventories; - Renewable Products: reference margin confirmed at around the average level of 2015, with a strong additional margin (also a confirmation); - Capex 2016 confirmed at €400m. Q2 comparable net profit was at €214m (vs. €55m in Q2 15), well above consensus (at €145m).
Q1 conventional and renewable refining miss consensus
27 Apr 16
Q1 comparable operating profit was €175m (vs. €215m in Q1 15), below consensus estimates at c.€200m. Both Oil Products and Renewable products came in below consensus. By segment: 1) Oil Products: the comparable operating profit was €86m (vs. €156m in Q1 15). The reference margin was $4.9/bbl (vs. $7.5/bbl in Q1 15). The additional margin rose to $5.6/bbl (vs. $4.2/bbl in Q1 15 and $5.3/bbl in Q4 15). The utilization rate at Porvoo was 88% (vs. 98% in Q1 15) due to planned maintenance. 2) Renewable Products: the comparable operating profit came in at €80m (vs. €42m in Q1 15). The reference margin was $149/t, (flat yoy, down from $209/bbl in Q4 15). The additional margin stood at $270/t (vs. $186/t in Q1 15), benefitting from the US BTC. 3) Oil Retail: the operating profit was €22m (up from €17m in Q1 15). Outlook: - Oil Products: reference margins supported by good gasoline margins, while the diesel crack spread is expected to remain flat. - Renewable Products: reference margin at around the average level for 2015, strong additional margin. - Capex 2016 confirmed at €400m. Q1 comparable net profit stood at €146m (-3% yoy), missing consensus.
Renewable Products drives Q4 beat, with 2016 reference margins similar to 2015
04 Feb 16
Q4 comparable operating operating profit came in at €352m (+39% yoy), 29% above consensus estimates. This is mainly thanks to Renewable products (€178m, +63% yoy and 30% above expectations), where the company sees refining margins in 2016 at approximately the same average level as in 2015. By segment: 1) Oil Products: comparable operating profit was €91m (vs. €110m in Q4 14). The reference margin was $5.7/bbl, stable yoy, and down from Q3 15 (at $9.1/bbl). The additional margin, at $5.3/bbl ($5.8/bbl in Q4 14) had a negative impact of €18m vs. Q4 14. Utilization rate at Porvoo was 80% (vs. 85% in Q4 14) due to the unscheduled maintenance of a module. The stronger dollar contributed with €34m. 2) Renewable Products: the reference margin was $209/t (flattish yoy). The US BTC contributed €80m more than in Q4 14. The additional margin averaged $424/t (+4% yoy). The stronger dollar had a €28m positive impact. 3) Oil Retail: operating profit was €17m (up from €8m in Q4 14). 4) Others: joint arrangements (including Neste Jacobs, Neste' engineering JV, at 60%, and Nynas, at 50%, with PDVSA) brought a €22m contribution (vs. €1m in Q4 14), raising Others to €15m (vs. -€2m in Q4 14). Q4 comparable net profit was at €295m (+43% yoy), beating consensus. Net cash from operations was at €380m (+8% yoy). Outlook 2016: - Oil products reference margin supported by the gasoline crack spread; - Renewable products reference margins at approximately the same average level as in 2015. 7-week turnaround of the Rotterdam refinery in April-May 16; - Capex at €400m; - Effective tax rate at c.20%.
EPA requirements supporting Renewable Fuels; mixed conventional refining
10 Dec 15
Last week, the US EPA raised the volume requirements for biomass-based diesel for 2015, 2016, and 2017. The new levels are higher than the ones proposed by the EPA in May 2015. On the other hand, on Wednesday, 9 December, Neste warned that the Porvoo refinery is experiencing a malfunction related to one of its cooling systems, resulting in reduced utilisation (c.70%) since November. The issue should be solved by the end of January 2016.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
GTL transaction not going ahead
01 Dec 16
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.