NTOIF - Neste Oyj (NTOIF) Q1 2024 Earnings Call Transcript
2024-04-25 16:13:09 ET
Neste Oyj (NTOIF)
Q1 2024 Earnings Conference Call
April 25, 2024 08:00 AM ET
Company Participants
Anssi Tammilehto - IR
Matti Lehmus - President and CEO
Martti Ala-Harkonen - CFO
Katja Wodjereck - EVP, Renewables Products
Markku Korvenranta - EVP, Oil Products
Conference Call Participants
Erwan Kerouredan - RBC
Matthew Blair - TPH
Henri Patricot - UBS
Artem Beletski - SEB
Sasikanth Chilukuru - Morgan Stanley
Michele Della Vigna - Goldman Sachs
Peter Low - Redburn Atlantic
Kate Sullivan - Citi
Giacomo Romeo - Jefferies International
Henry Tarr - Berenberg
Derrick Whitfield - Stifel
Paul Redman - BNP Paribas
Matt Lofting - JPMorgan
Anish Kapadia - Palissy Advisors
Christopher Kuplent - Bank of America
Naisheng Cui - Barclays
Presentation
Operator
Anssi Tammilehto
Thank you and good afternoon ladies and gentleman. Welcome to this Conference Call to discuss Neste's First Quarter Results published this morning. I am Anssi Tammilehto, Head of IR at Neste. Here with me on the call our President and CEO, Matti Lehmus, our CFO, Martti Ala-Harkonen; and the business unit heads Katja Wodjereck of Renewable Products, and Markku Korvenranta, Oil Products.
We will be referring to the presentation that can be found on our website. And as always please pay attention to the disclaimer since we will be making forward-looking statements in this call.
With these remarks, I would like to hand over to our President and CEO, Matti Lehmus to start with the presentation. Matti please go ahead.
Matti Lehmus
Thank you and a very good afternoon also on my behalf. It's great to have you all participating in the call.
As we anticipated in our previous quarterly earnings call, the market in renewables was clearly more challenging in the first quarter, both in the U.S. and in Europe. In this weaker market environment, we have kept our focus on our resilience strategy and on our competitive advantages to different margins.
So, moving to the first slide, our group comparable EBITDA was €551 million in the first quarter. This is one-third lower than last year, despite growth in renewable sales volume.
One key driver for the lower result is the lower renewable sales margin of $562 per tonne, which compares to last year's average of $863 per tonne. The margin in the first quarter reflect the lower bioticket prices and renewable sales premiums versus last year, and also the renegotiated annual term contracts as the old contract expired at the end of the year.
On year-on-year, the sales volumes grew in renewable products, but were slightly below the previous quarters level due to the SAF inventory build-up and preparation for upcoming maintenance turnarounds, and also the seasonally lower demand at the beginning of the year....
Neste Oyj (NTOIF) Q1 2024 Earnings Call Transcript