Neste Oil expects to complete repairs on the damaged hydrogen unit at Porvoo by the end of October;

Neste Oil expects to complete repairs on the damaged hydrogen unit at Porvoo by the end of October;

Neste Oil expects that repair work on the damaged hydrogen production unit at its Porvoo refinery will take until the end of October to be completed. The damage to the unit, one of two at the site, has resulted in reduced output and required the shutdown of Production Line 4, which produces diesel. The incident is projected to have an impact totaling approximately EUR 60 million on the company’s comparable operating profit for 2014, comprising approx. EUR 50 million in lost output and approx. EUR 10 million in repair costs.
The Oil Products reference refining margin has been higher than expected so far during the third quarter, and market prospects for the next few months in particular have improved. This is expected to compensate the impact that the damaged hydrogen unit will have on the company’s result by some EUR 30 million.
Neste Oil now expects its comparable operating profit for 2014 to come in at under EUR 400 million. The company previously forecast a comparable operating profit for 2014 of EUR 450 million +/- 10% and stated in early August that the figure was likely to be closer to the lower end of the guidance range.
Neste Oil reported the damage to the hydrogen unit on 18 August 2014.
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