Neste RELEASE 2020 Financial Statement
Neste’s revenue in 2020 totaled EUR 11,751 million (15,840 million). The revenue decline resulted from the lower crude oil price, which had a negative impact of approx. EUR 3.0 billion, and lower sales volumes of conventional oil products, which had a negative impact of approx. EUR 900 million on the revenue.
Additionally, the weaker US dollar had a negative impact of approx. EUR 200 million on the revenue year-on-year. The Group’s comparable operating profit was EUR 1,416 million (1,962 million). Renewable Products’ comparable operating profit was EUR 1,334 million (1,599 million) supported by high sales volumes and margins. The segment’s 2019 figures included the positive impact of EUR 372 million of the retroactive US BTC for 2018 and 2019, while the BTC contribution in 2020 was EUR 231 million.
Oil Products‘ comparable operating profit was EUR 50 million (386 million), due to the exceptionally weak refining market. Marketing & Services’ comparable operating profit was EUR 68 million (77 million), and considering the divestment of the Russian business in late 2019, the segment actually improved its performance. The Others segment’s comparable operating profit of EUR -37 million (-98 million) was significantly better than in the year 2019, mainly as a result of the minority shareholding in Nynas having been written-off in 2019.
The Group’s operating profit was EUR 828 million (2,229 million), which was impacted by inventory valuation losses of EUR 119 million (gains of 180 million), and changes in the fair value of open commodity and currency derivatives totaling EUR -112 million (69 million), mainly related to margin hedging.
The divestment of Nynas resulted in a capital loss of EUR 42 million in the third quarter. Other adjustments totaling EUR -312 million were booked in the fourth quarter relating to the Naantali refinery closure. They included an asset write-down, and cost provisions for site demolition, clean-up and personnel arrangements. Profit before income taxes was EUR 786 million (2,067 million), and net profit EUR 714 million (1,789 million). Comparable earnings per share were EUR 1.60 (2.04), and earnings per share EUR 0.93 (2.33).
The Group’s fourth quarter 2020 results
Neste’s revenue in the fourth quarter totaled EUR 3,028 million (4,053 million). The revenue decline resulted from the lower crude oil price, which had a negative impact of approx. EUR 700 million, and lower sales volumes of oil products, which had a negative impact of approx. EUR 100 million on the revenue. Additionally, the weaker US dollar had a negative impact of approx. EUR 200 million on the revenue compared to the corresponding period last year. The Group’s comparable operating profit was EUR 380 million (781 million). Renewable Products’ comparable operating profit was EUR 338 million (671 million), showing continued resilience in the turbulent market. The segment’s fourth quarter 2019 figures included a contribution of EUR 372 million from the retroactive US BTC decision for the years 2018 and 2019. Oil Products’ comparable operating profit was EUR 37 million (117 million) due to the continued weak refining market. Marketing & Services comparable operating profit was EUR 15 million (11 million). The Others segment’s comparable operating profit was EUR -7 million (-14 million).
The Group’s operating profit was EUR -2 million (1,046 million), which was impacted by inventory valuation losses of EUR 21 million (gains of 87 million), and changes in the fair value of open commodity and currency derivatives totaling EUR -48 million (133 million), mainly related to margin and inventory hedging. Other adjustments totaling EUR -312 million were booked in the fourth quarter relating to the confirmed Naantali refinery closure.
They included an asset write-down, and cost provisions for site demolition, clean-up and personnel arrangements. Profit before income taxes was EUR -21 million (1,030 million), and net profit EUR 6 million (934 million). Comparable earnings per share were EUR 0.44 (0.92), and earnings per share EUR 0.01 (1.22).
Source and Full Report: Neste Corporation, Financial Statements Release
