Neste Corp announced its third-quarter financial results, highlighting substantial growth in its Renewable Products segment. The company reported a remarkable 40 percent increase in comparable EBITDA, driven by improved margins and sales volumes for renewable diesel and sustainable aviation fuel (SAF).
During the third quarter, Neste's Renewable Products segment achieved a comparable EBITDA of EUR 545 million, up significantly from EUR 389 million in the same period last year. The comparable sales margin for renewable products soared to $912 per ton, compared to $732 per ton, bolstered by strong diesel prices and successful global optimization across feedstocks, markets, and products, according to Neste's President and CEO, Matti Lehmus.
Neste's sales volumes also showed remarkable growth, with the company selling 860,000 tons of renewable diesel and SAF during the quarter, compared to 698,000 tons in the third quarter of 2022. This increase in sales volume was achieved despite a delayed ramp-up at Neste's Singapore biorefinery. The Singapore facility resumed operations in August after completing its expansion project; however, ramp-up was delayed due to additional equipment and repair works. Production on the new line is expected to restart during the first half of November.
Construction activities at the Martinez Renewables facility in the United States, a joint venture between Neste and Marathon Petroleum Corp, are progressing well. Lehmus stated that pretreatment capabilities will increase through the second half of 2023, and the facility is projected to reach a nameplate capacity of 730 million gallons per year by the end of 2023.
Looking ahead, Neste anticipates that fourth-quarter sales volumes of renewable diesel and SAF may decline somewhat compared to the third quarter. The company attributes this expected decrease to planned maintenance shutdowns at the Martinez facility and the Rotterdam biorefinery. However, the new production line at the Singapore facility is set to reach approximately 75 percent capacity utilization by the year's end and will begin contributing to SAF sales volumes in 2024.
Overall, Neste reported a third-quarter comparable EBITDA of EUR 1.047 billion, a notable increase from EUR 979 million during the same period the previous year. EBITDA reached EUR 889 million, up from EUR 456 million, underlining the company's impressive financial performance.