NTOIF - Neste: Current Setbacks Will Not Halt Growth
2024-03-21 05:49:06 ET
Summary
- Neste is a Finnish company involved in the refining and sale of oil and renewable fuels.
- The company has invested heavily in increasing its production capacity of renewable diesel and sustainable aviation fuels.
- Its solid balance sheet and high production of free cash flows make it an attractive investment, with a current dividend yield of 4.8%.
Neste (NTOIY) (NTOIF) is a Finnish company involved in the refining and sale of oil and renewable fuels, also owning a network of 948 service stations in the Scandinavian region. I believe the company is well positioned to capitalize on the growing use of renewable fuels, the demand for which is expected to explode in the coming years, also due to new national and international regulations. Although globally we are seeing a gradual transition to electric in the transportation sector, in some market segments such as aviation this transformation will take significantly longer. This makes SAFs ( sustainable aviation fuels ) the best alternative for reducing emissions from one of the most polluting means of transportation on the planet. Initiatives such as RefuelEU , aiming to increase the share of biofuels used by commercial flights, can be a catalyst for growth in the sector....
Neste: Current Setbacks Will Not Halt Growth