Neste reports strong Q3 for renewable diesel, SAF

By Erin Voegele | October 26, 2023

Neste Corp. released third quarter financial results on Oct. 26, reporting a 40 percent increase in comparable EBITDA for its Renewable Products segment. Margins and sales volumes for renewable diesel and sustainable aviation fuel (SAF) were also up.

Neste’s Renewable Products segment reported comparable EBITDA of EUR 545 million, up from EUR 389 million during the third quarter of last year. The comparable sales margin for renewable products was $912 per ton, up from $732 per ton, supported by strong diesel prices, success global optimization across feedstocks, market and products, according to Neste President and CEO Matti Lehmus.

The company sold 860,000 tons of renewable diesel and SAF during the quarter, up from 698,000 tons during the third quarter of 2022. The increase in sales volume was achieved despite delayed ramp-up at the company’s Singapore biorefinery. The Singapore facility restarted in August following completion of its expansion project. Ramp-up, however, was delayed by a shutdown for additional equipment and repair works, Lehmus said. Production at the new line is expected to restart during the first half of November, he added.

Construction activities are also progressing that the Martinez Renewables facility in the U.S., which is being developed under a joint venture between Neste and Marathon Petroleum Corp. “Pretreatment capabilities are increasing through the second half of 2023, and the facility is expected to have a nameplate capacity of 730 million gallons per year by the end of 2023,” Lehmus said.

Neste currently expects fourth quarter sales volumes of renewable diesel and SAF to be down somewhat when compared to the third quarter. The company attributed the expected lower sales volumes to planned maintenance shutdowns at the Martinez facility and the company’s Rotterdam biorefinery. The new production line at the Singapore facility is expected to reach approximately 75 percent capacity utilization by the end of the year and begin to contribute to SAF sales volumes in 2024.

Overall, Neste reported third quarter comparable EBITDA of EUR 1.047 billion, up from EUR 979 million during the same period of last year. EBITDA was EUR 889 million, up from EUR 456 million.

A full copy of Neste’s third quarter 2023 report is available on the company’s website.