Finland-based Neste Oil Corp. (NTOIF.PK) reported that its first-quarter profit declined to 47 million euros from last year's 123 million euros, with earnings per share decreasing to 0.18 euros from 0.48 euros in the prior year quarter.
Pre-tax profit for the quarter was 65 million euros, down from 169 million euros in the prior year quarter.
The Group's IFRS operating profit declined to 86 million euros from 191 million euros last year. IFRS operating profit for the latest-quarter was impacted by inventory losses totaling 35 million euros compared to gains of 64 million euros last year, and changes in the fair value of open oil derivatives totaling -14 million euros, compared to 3 million euros. It should also be noted that the result during the corresponding period last year was positively impacted by a one-time capital gain of 45 million euros.
The Group's comparable operating profit came in at 135 million euros. Comparable operating profit for the corresponding period in 2012 was 79 million euros. Oil Products' result was positively impacted by higher refining margins and good productivity.
Quarterly revenue declined to 4.258 billion euros from last year's 4.454 billion euros, mainly due to lower average crude oil prices.
The Group's full-year comparable operating profit is expected to improve compared to 2012, assuming that Neste Oil's reference refining margin remains at the average level of approx. USD 5/bbl typical of the last few years and that Renewable Fuels' result develops as expected.
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