Huge breakthrough for Neste – Heikki Malinen: “The market will double”

An oil refining company In this is now forging a record result. The company made an EBITDA of more than one billion euros in the second quarter. The exceptional market situation has strengthened the company’s margins.

“Neste will benefit if we are able to run our production at a high level, and purchases have gone well. Our raw material procurement in renewables has also been very successful,” says Neste’s CEO Heikki Malinen Economic morning.

According to Malinen, margins have remained strong in the third quarter as well.

“Regarding history, they are relatively high, yes.”

On the other hand, the maintenance shutdown of the Porvoon refinery falls precisely at this moment.

“If margins are this high and we are down for two months, then of course it will have an undeniable financial impact.”

Positive news

Looking at the big picture, Neste has received very positive news recently.

“Our regulatory environment has changed in a really positive direction.”

One reason is that, especially in renewable diesel, Europe wants to protect its own internal combustion engine car industry. Before we get to the point where electric cars can be made cost-competitively in Europe, combustion engine cars have to be used for quite a long time, says Malinen, and that supports the demand for renewable diesel.

Another factor is the renewable energy directive RED3, which in practice regulates that member countries have to increase distribution levels.

“Now what’s happening is that our market will grow in Europe from five million tons to ten million tons by 2030. So the market will double, and that’s quite a thing.”

Regarding renewable aviation fuel, or SAF, the increase in regulatory requirements from the current level is still a question mark.

“SAF is more about the 2030s. In the coming years, it will be renewable diesel.”

You can watch Thursday’s entire Talousaamu broadcast below.