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Q1 2014 RESULTS – Neste Oil

Neste Oil · Apr 25, 2014 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q1 2014 RESULTS – Neste Oil – slide 1
    First Quarter result 2014 Matti Lievonen, President & CEO 25 April 2014
  2. Q1 2014 RESULTS – Neste Oil – slide 2
    Table of Contents 1 Q1/14 Group financials 2 Q1/14 segment reviews 3 Current topics 4 Appendix 25 April 2014 2
  3. Q1 2014 RESULTS – Neste Oil – slide 3
    Q1/14 Group financials
  4. Q1 2014 RESULTS – Neste Oil – slide 4
    Satisfactory performance in weak market Good operational performance delivered high additional margins Weak reference margins in both Oil Products and Renewable Fuels Lower fixed costs 25 April 2014 5
  5. Q1 2014 RESULTS – Neste Oil – slide 5
    Group financials Q1/14 MEUR Q1/2014 Q1/2013 Revenue 3,654 4,258 Comparable EBITDA 136 215 Comparable operating profit 55 135 Oil Products 33 111 Renewable Fuels 15 26 Oil Retail 15 11 Others (incl. eliminations) -8 -13 IFRS…
  6. Q1 2014 RESULTS – Neste Oil – slide 6
    Profitability impacted by 45% drop in reference margins Group comparable EBIT Q1/13 vs. Q1/14, MEUR 135 -78 -11 +5 55 +4 Q1/13 Oil Products Renewable Oil Retail Others (incl. Q1/14 Fuels eliminations) 25 April 2014 7
  7. Q1 2014 RESULTS – Neste Oil – slide 7
    Renewable Fuels markets softened Group comparable EBIT Q4/13 vs. Q1/14, MEUR 164 -39 -79 +1 +8 55 Q4/13 Oil Products Renewable Oil Retail Others (incl. Q1/14 Fuels eliminations) 25 April 2014 8
  8. Q1 2014 RESULTS – Neste Oil – slide 8
    Key financial targets at solid levels ROACE, rolling 12 months, % Leverage, % 15 50 40 10 30 20 5 10 0 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 25 April 2014 9
  9. Q1 2014 RESULTS – Neste Oil – slide 9
    Q1/14 segment reviews
  10. Q1 2014 RESULTS – Neste Oil – slide 10
    Oil Products burdened by soft markets and maintenance outage Comparable EBIT, MEUR 150 Soft markets Planned maintenance 100 outage at Porvoo PL4 50 Base Oils contribution low 0 Solid additional margin Q1/13 Q2/13 Q3/13 Q4/13…
  11. Q1 2014 RESULTS – Neste Oil – slide 11
    Product margins under pressure Product margins (price differential vs. Brent), Urals vs. Brent price differential, USD/bbl USD/bbl 20 1 10 0 0 -1 -10 -2 -20 -3 -30 -4 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jan-13 Apr-13…
  12. Q1 2014 RESULTS – Neste Oil – slide 12
    Solid additional margin Neste Oil refining margins, USD/bbl 15 Low reference margin of USD 3.3/bbl 10 Solid additional margin of USD 5.1/bbl despite Porvoo PL4 5 maintenance outage 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Total…
  13. Q1 2014 RESULTS – Neste Oil – slide 13
    Low reference margin Oil Products comparable EBIT Q1/13 vs. Q1/14, MEUR 111 -4 -56 -9 +2 -11 33 Q1/13 Volumes Reference Additional Fixed costs Other Q1/14 margin margin 25 April 2014 14
  14. Q1 2014 RESULTS – Neste Oil – slide 14
    Renewable Fuels impacted by weak markets Comparable EBIT, MEUR 150 Weak margins particularly in the US 100 Good operational performance at 106% 50 utilization rate 0 27% of sales volumes to Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 North…
  15. Q1 2014 RESULTS – Neste Oil – slide 15
    Narrow price spreads impacting European margins FAME RED Seasonal vs. Palm oil price* Vegetable oil and animal fat prices**, USD/ton differential, USD/ton 500 1,500 400 1,300 300 1,100 200 900 100 0 700 Jan-12 Jul-12 Jan-13…
  16. Q1 2014 RESULTS – Neste Oil – slide 16
    North American market waiting for regulatory decisions SME vs. Soybean oil price differential, USD/ton Biodiesel RIN, US cent /gal 800 150 600 100 400 50 200 0 0 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jan-12 Jul-12 Jan-13 Jul-13…
  17. Q1 2014 RESULTS – Neste Oil – slide 17
    Sales margin supported by good additional margin Renewable Fuels margins, USD/ton Biofuel regulation uncertainties 500 impacted sales prices and 400 demand in the US 300 Narrowed feedstock price spreads affected margins in 200…
  18. Q1 2014 RESULTS – Neste Oil – slide 18
    Sales volumes and additional margin compensated weak markets Renewable Fuels comparable EBIT Q1/13 vs. Q1/14, MEUR +14 -47 26 +22 -1 +1 15 Q1/13 Volumes Reference Additional Fixed costs Other Q1/14 margin margin 25…
  19. Q1 2014 RESULTS – Neste Oil – slide 19
    Drop in reference margin impacted earnings Renewable Fuels comparable EBIT Q4/13 vs. Q1/14, MEUR 94 -15 -63 -6 +6 -1 15 Q4/13 Volumes Reference Additional Fixed costs Other Q1/14 margin margin 25 April 2014 20
  20. Q1 2014 RESULTS – Neste Oil – slide 20
    Oil Retails solid performance continued Comparable EBIT, MEUR 30 Stronger margins in all markets 20 Divestments of businesses in Poland 10 and Sweden improved result 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Restructuring of station…
  21. Q1 2014 RESULTS – Neste Oil – slide 21
    Stronger margins in all markets Mild winter impacting heating oil demand in Finland Modest growth in car traffic in Finland Growing demand in Russia and Baltic countries Fuel branding: Neste Futura introduced in Baltic…
  22. Q1 2014 RESULTS – Neste Oil – slide 22
    Lower fixed costs Oil Retail comparable EBIT Q1/13 vs. Q1/14, MEUR +1 15 +4 11 -2 +1 Q1/13 Volumes Unit margin Fixed costs Other Q1/14 25 April 2014 23
  23. Q1 2014 RESULTS – Neste Oil – slide 23
    Current topics
  24. Q1 2014 RESULTS – Neste Oil – slide 24
    Company outlook for 2014 revised Q1 refining and renewable fuels Singapore NEXBTL refinery to be margins softer than expected taken down for eight-week major turnaround during Q3 and Q4 Group's full-year comparable operating profit…
  25. Q1 2014 RESULTS – Neste Oil – slide 25
    CMD Save the date Neste Oil will host a Capital Markets Day in London on 11 September 2014 Invitations will follow 25 April 2014 26
  26. Q1 2014 RESULTS – Neste Oil – slide 26
    We focus on Renewable Refinery Fuels Safety Cash flow productivity markets and customers 25 April 2014 27
  27. Q1 2014 RESULTS – Neste Oil – slide 27
    Thank you. Matti Lievonen, President & CEO
  28. Q1 2014 RESULTS – Neste Oil – slide 28
    Appendix
  29. Q1 2014 RESULTS – Neste Oil – slide 29
    Renewable Fuels EBIT calculation Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Sales volume, kt 385 411 532 599 1928 488 Reference margin, /ton 365 346 453 350 371 206 Additional margin, /ton 66 88 135 159 127 146 Variable production costs,…
  30. Q1 2014 RESULTS – Neste Oil – slide 30
    Refinery production costs, Porvoo & Naantali Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Refined Products Million Barrels 26.7 24.7 28.8 26.6 106.9 25.3 Exchange Rate EUR/USD 1.32 1.31 1.33 1.36 1.33 1.37 EUR Milion 62.8 58.8 58.0 61.6…
  31. Q1 2014 RESULTS – Neste Oil – slide 31
    Balance sheet Total assets Total equity & liabilities Non-current assets Others Int-bear. liabilities Equity Current assets Int-free liabilities Others 8,000 7,178 8,000 7,178 6,721 6,721 7,000 61 7,000 21 18 0 6,000 6,000 2,578…
  32. Q1 2014 RESULTS – Neste Oil – slide 32
    Cash flow MEUR Q1/14 Q1/13 Q4/13 2013 Profit before taxes 38 65 167 561 Adjustments total 101 126 101 360 Change in working capital -287 -272 386 100 Cash from operations -148 -81 654 1,021 Net finance costs -10 -1 -13 -98 Taxes -20 -23…
  33. Q1 2014 RESULTS – Neste Oil – slide 33
    Liquidity & maturity profile MEUR 600 Total liquidity at the end of March 2014 was EUR 2,130 million 500 Cash and cash equivalents totalled 400 EUR 168 million Unused committed credit facilities 300 totalled EUR 1,582 million 200…

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