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.
|27Dec16 07:30||GNW||Neste to acquire pre-treatment and storage capacity for renewable raw materials in the Netherlands as part of the company's growth program|
|15Dec16 01:00||GNW||Neste appoints Christian Ståhlberg as General Counsel and member of the Neste Executive Board|
|14Dec16 12:00||GNW||The Board of Directors of Neste Corporation resolved on performance share plan 2017-2019 details|
|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|
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.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.