Neste’s disaster – now the portfolio manager’s review came: “This is the name of the job”

Fuel company Fluid Even worse than expected, now causes headaches for investors. Known as a strong dividend payer, Neste’s share price has fallen by 75 % in three years.

Should a company that has experienced a historical collapse now just forget about? Portfolio manager Tomi Korpivaara From Aktia tells what’s the name of the job now.

See broader reviews in the video below, including Kempower’s views.

Korpivaara recalls that fifteen years ago, it was talked about whether Neste’s impression should be written down the entire investment of renewable fuel, which the company had made at the time. Then there was a market in California, which has significantly supported the use of renewable fuels.

“For that market has been created in its own way, and Neste had a unique product or unique technology,” Korpivaara says in the Market Jury program.

Cost -effective production was successful, he says. However, Neste’s renewable diesel began to gain more and more competitors in recent years. At the same time, state subsidies have gone to ice, Korpivaara points out.

“This is the name of the job just. You have to always be a permanent competitive advantage. Without a permanent competitive advantage, at some point competitors will catch. At the moment, I would evaluate the fluid from what the future looks like now, and it does not look as rosy at all as then a couple of three years ago. ”

Are there any signs of danger in the air that the investor must work?

“Last year probably was exceptionally weak. The result may be better on this year, and demand for Lentosaff (SAF, durable air fuel) will also increase through regulation. But is the liquid who can take it all of it? It must then be evaluated separately, ”Korpivaara replies.

Neste CEO Heikki Malinen In the future, the market for renewable flight fuel and renewable diesel will explode. Climate and business network Clc: n managing director Tuuli Kaskinen considers the estimate as credible.

“Does it happen next year, in two years or after six years and at what odds it is a question mark and that political situation is of great importance,” says Kaskinen.

Kaskinen points out that a couple of years ago, “Neste’s incomprehensible success” was greatly admired and it is still impossible to say in what situation the company will be in the teaching of Heikki Malinen in a few years.