NTOIF - Neste Oyj reports Q1 results; initiates Q2 and FY23 outlook

2023-04-28 05:41:23 ET

• Neste Oyj press release ( OTCPK:NTOIF ): Q1 Revenue of €5.3B (-4.0% Y/Y).
• Comparable EBITDA totaled €830 million (€578 million).
• EBITDA totaled €463 million (€916 million).
• Cash flow before financing activities was -€102 million (-€960 million).
• Comparable return on average capital employed (Comparable ROACE) was 31.8% over the last 12 months (Q1/2022: 19.1%).
• Leverage ratio was 18.7% at the end of March (31.12.2022: 13.9%).
• Outlook: "Looking forward to the second quarter, we have a high ambition to significantly increase our sales volume in Renewable Products."
• Renewable Products’ second-quarter renewable diesel and SAF sales volume is expected to be 30–50% higher than in the first quarter of 2023.
• Based on the current outlook, Neste’s second-quarter comparable sales margin is expected to be in the range of USD 800–900/ton. The segment’s second-quarter fixed costs are expected to be approximately €20 million higher than in the first quarter, driven by the build-up of capabilities related to the start-up of our growth projects.
• The second-quarter utilization rates of renewable production facilities are forecasted to remain high, assuming a successful ramp-up of our new facilities both in Martinez, California and in Singapore.

• Based on the current estimates and a hedging rate of approx. 85%, Neste's effective EUR/US dollar rate is expected to be within the range of 1.05–1.07 in the second quarter of 2023.

• Neste estimates the Group’s full-year 2023 cash-out capital expenditure excluding M&A to be approx. €1.7–1.8 billion.

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