Neste posts $995M operating profit in 2020, strong year even with pandemic

In Finland, Neste released their 2020 financial statements showing an operating profit totaling EUR 828 million (about $995 million) with Renewable Products posting a solid full-year comparable operating profit of EUR 1,334 million (about $1.6 million) and renewable diesel demand remained good during the pandemic, but feedstock markets tightened during the year.

Year 2020 in brief:

• Comparable operating profit totaled EUR 1,416 million (EUR 1,962 million, including EUR 142 million contribution from a retroactive US Blender’s Tax Credit decision for 2018)
• Operating profit totaled EUR 828 million (EUR 2,229 million)
• Cash flow before financing activities totaled EUR 1,019 million (EUR 1,154 million)
• Return on average capital employed (ROACE) was 17.3% over the last 12 months (26.6%)
• Leverage ratio was -4.7% at the end of December (31 Dec 2019: -3.3%)
• Comparable earnings per share were EUR 1.60 (EUR 2.04)
• Earnings per share: EUR 0.93 (EUR 2.33)
• Board of Directors will propose a dividend of EUR 0.80 per share (1.02), totaling EUR 614 million (EUR 783 million)

President and CEO Peter Vanacker said, “Despite the challenges and disruptions caused by the COVID-19 pandemic, 2020 was a success for Neste in many ways. We posted a solid comparable operating profit of EUR 1,416 million, compared to EUR 1,962 million in the previous year. The result of the year 2019 included a contribution of EUR 372 million from the retroactive US Blender’s Tax Credit (BTC) decision for the years 2018 and 2019. The BTC contribution in 2020 was EUR 231 million. In 2020 Renewable Products proved to be very resilient with increased sales volumes and strong sales margins. Our cash flow before financing activities was very strong at EUR 1,019 million in 2020. The solid financial position enables implementation of our growth strategy going forward while rewarding our shareholders.”