Finland-based oil refiner and marketer Neste anticipates continued global economic volatility in the renewable fuel and feedstocks markets throughout the remainder of the new year.
The producer of renewable diesel announced in their first quarter 2017 earnings report the current evaluation of options to invest in new renewable production capacity locations in the US and Singapore.
However, due to reduced sales in North America, the company announced a decision to allocate 10pc of its business out of the US and into more attractive markets in Europe, said Kaisa Hietala, Neste’s executive vice president of renewable products.
The company produced 649,000 tons of renewable diesel during the first quarter of 2017, a near 12pc rise from the first quarter of 2016. Capacity utilization rate during this period was 99pc, a 5-percentage point rise from the first quarter of 2016, and an 11-percentage point rise from the 2016 capacity utilization average.
Renewable diesel sales during Q1 totaled 543,000t, a 2.3pc rise from the previous year. Volumes sold into the European marketplace totaled 82pc, while volumes sold into North America accounted for the remaining 18pc of total sales during the most recent quarter.
Neste’s renewable products segment posted a first-quarter operating profit of EUR 80mn, unchanged from the previous year’s figure. Segment revenue meanwhile totaled EUR 699mn, a near 20pc rise from the first quarter of 2016.
Neste operates three renewable diesel production facilities in Porvoo, Rotterdam, and Singapore, with an annual production capacity of 2.6mn tons.