Finland-based oil refiner and marketer Neste anticipates continued volatility in the vegetable oil market during the upcoming year, leading to expanded use of lower-quality waste and residue feedstock use in its renewable products segment.
The producer of renewable diesel announced in their third quarter 2017 earnings report the planned two-week shutdown of its Singapore refinery due to a hydrogen supplier’s planned maintenance outage in November, which is not expected to material impact the companies expected high utilization rates during this period.
The company did not disclose its renewable diesel production during the third quarter of 2017, however, Neste’s capacity utilization rate during this period was 99pc, a 1-percentage point fall from the third quarter of 2016, and a 9-percentage point rise from the Q2 capacity utilization average.
Renewable diesel sales during Q3 totaled 637,000t, a 17pc rise from the previous year. Volumes sold into the European marketplace totaled 73pc, while volumes sold into North America accounted for the remaining 27pc of total sales during the most recent quarter.
Neste’s renewable products segment posted a third-quarter operating profit of EUR 171mn, up 47mn from the previous year’s figure. Segment revenue meanwhile totaled EUR 352mn, a near 10pc rise from the third quarter of 2016.
Neste operates three renewable diesel production facilities in Porvoo, Rotterdam, and Singapore, with an annual production capacity of 2.6mn tons.