Neste Reports Significant Profit Decline for 2024
Finnish energy company Neste Oyj announced a sharp drop in its 2024 financial results, with comparable EBITDA falling significantly compared to the previous year.
Helsinki – Neste Oyj released its 2024 financial statements on February 13, 2025, revealing a substantial decrease in comparable earnings before interest, taxes, depreciation, and amortization (EBITDA). The company reported a comparable EBITDA of EUR 1,252 million for the full year, a steep decline from EUR 3,458 million in 2023. Neste has initiated actions to address the challenging market environment and weak financial performance.
The company faced significant shifts in both its renewable and oil products segments. In renewable products, increased competition and capacity led to lower sales prices, with the comparable sales margin dropping to USD 377 per ton from USD 863 per ton in 2023. Operational challenges at refineries also impacted production. For oil products, refining margins normalized from the high levels of 2023, with the total refining margin averaging USD 14.1 per barrel, down from USD 21.1 per barrel.
Neste's strategic growth project in Rotterdam, Netherlands, has experienced delays and increased costs. Commercial operations are now expected to commence in 2027, with estimated investment costs rising to EUR 2.5 billion from an initial EUR 1.9 billion. The company is implementing strict capital discipline, with planned capital expenditures beyond the Rotterdam investment to remain around EUR 0.5 billion annually, focusing on safety and reliability.
In response to the current situation, Neste has launched a comprehensive performance improvement program aimed at enhancing financial results and strengthening its market position in renewable fuels. The program targets a EUR 350 million EBITDA run rate improvement by the end of 2026, including EUR 250 million from operational cost reductions. The company has also updated its financial targets for 2025-2026 to reflect these actions, committing to maintaining a leverage ratio below 40% and an investment-grade credit rating.
The board of directors will propose a dividend of EUR 0.20 per share, a significant reduction from the EUR 1.20 per share paid in 2023. Neste highlighted the ongoing urgency to address climate change and provide solutions for emission reductions in hard-to-abate sectors.