Neste reports strong Q1 earnings amidst geopolitical disruption

Neste Oyj reported strong financial results for the first quarter of 2026, ending March 31. Geopolitical tensions in the Middle East and the closure of the Strait of Hormuz caused considerable disruption in global oil markets, yet Neste managed to navigate the situation effectively.

The company's comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to EUR 861 million, compared to EUR 210 million in the first quarter of 2025. This performance reflects the surge in global end-product prices. Furthermore, Neste's operational improvement program contributed EUR 100 million to EBITDA, exceeding initial targets. Cash flow before financing activities improved to EUR 286 million, a significant rebound from EUR -225 million in the prior year.

The Renewable Products segment achieved a comparable EBITDA of EUR 433 million, despite a slight decrease in sales volumes due to maintenance shutdowns and delayed equipment installations. However, sales premiums increased significantly. The Oil Products segment reported a comparable EBITDA of EUR 373 million, with a substantially higher refining margin compared to the previous year, partly supported by cold weather and elevated prices for refined products.

Neste's supply chains were not directly impacted by the closure of the Strait of Hormuz, as the company sources crude oil primarily from the North Sea and maintains a diversified supply chain for renewable feedstocks. While the Middle East situation did not directly affect production, Neste is closely monitoring developments and preparing for various scenarios. The company also highlighted the role of renewable fuels in strengthening European energy security.

Looking ahead, Neste is focused on enhancing its performance, particularly by improving operational reliability and progressing with its strategic investment project in Rotterdam. The company expressed confidence in its strong position to continue performance improvements and reliably serve its customers in an uncertain operating environment.