Rewritten the headline and paragraph 1 and added analyst comments to paragraph 2 in response to the sharp decline in stock prices
Helsinki, February 8 (Reuters) –Stocks in Finland’s Neste neste he Stocks plunged on Thursday after the biofuels producer and oil refiner reported lower-than-expected fourth-quarter operating profits and expected a lower return on sales for renewable products in 2024 than a year earlier. did.
What is the Singapore factory? Finally extended Neste expects renewable energy sales to increase to approximately 4.4 million tonnes in 2024, with comparable sales margins of $600 to $800 per tonne, significantly below the 2023 average of $863. I am.
“We believe FY2024 renewables return on sales guidance…is likely to disappoint investors,” RBC analysts said in a note to clients, adding that biodiesel sales are likely to decline due to increased competition and tax burdens. It added that it could also be affected by reductions in deductions.
Neste’s shares fell 12% to 27.7 euros in morning trading.
In December, Neste announced plans to exit fossil fuel production. would convert The last remaining refinery in Porvoo will be converted into a biofuels plant by the mid-2030s.
The company’s renewable equivalent sales margin increased 7.7% from a year ago to $813 per ton.
Neste’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell 10.2% to 672 million euros ($725 million) in the October-December quarter, according to seven analysts compiled by LSEG. It fell short of the expected 790.7 million euros.
Neste’s board of directors has proposed a dividend of 1.2 euros per share.
(1 dollar = 0.9274 euro)
Report by Essi Lehto. Editing: Terje Solsvik, Jason Neely, Emelia Sithole-Matarise