Neste Beat 2Q25 Earnings Estimates with Soaring SAF Sales
Shares of Neste Oyj (NESTE.HE) closed up nearly 7% yesterday (Jul. 24) after the company reported earnings.
(Espoo, Finland) Finnish biofuel maker and oil refiner Neste (NESTE.HE) reported stronger than expected 2Q24 earnings yesterday (Jul. 24) driven by rising sales of sustainable aviation fuel (SAF); shares closed 7% higher at $14.81 after the report.
Photo from a Neste refinery courtesy of Neste.
Neste’s comparable quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) rose 42% from a year earlier to 341 million euros ($401 million), while analysts had expected 302.5 million euros on average in a company-provided consensus, according to Reuters.
Neste’s earnings report can be found here.
"Our sustainable aviation fuel sales increased close to 80% quarter on quarter, benefiting from additional SAF production capacity at our renewables refinery in Rotterdam," CEO Heikki Malinen said in a statement.
The rise in SAF sales drove the sales volume in Neste’s renewable products unit to a new quarterly record of 1,096 thousand tonnes, and the unit’s sales volume margin fell 5% to $361 per tonne, but exceeded analysts’ forecast of $329 per tonne, per Reuters.
“During the second quarter, we succeeded in running our operations safely and reliably,” Malinen said. “We saw positive developments in the biofuel regulation both in the US and EU, largely supporting long-term renewables demand. However, the market environment was volatile as geopolitical and global trade tensions continued to impact commodity prices and exchange rates, and we expect this to continue. In late June, the geopolitical events affected the oil markets and especially the increased middle distillate prices had a positive impact on our quarterly results.”
Per Reuters, Neste has been battling an excess supply in the renewable fuels market, pressuring sales volumes and leading to a reduction of about 510 jobs globally earlier in 2025; Malinen, who joined the company last year, told Reuters that he expects the oversupply to continue in 2026 or beyond that, depending on upon the regulation process in the European Union.
RBC analysts said in a research note that the second quarter was a "key litmus test" for Neste’s new management, adding the results boded well for investor sentiment, per Reuters.
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