Neste’s quarterly profits hurt by losses from renewables unit
Hurt by losses from its renewables unit, Finland’s Neste Oil Corporation reported a weaker-than-expected second-quarter profit. Neste has invested €1.4 billion in its renewables business, including a plant in Singapore which started operations last November and another in Rotterdam which is due to start in the current quarter. Neste said renewables sales were insufficient to make up for their higher production costs. Neste’s April-June comparable operating profit, excluding inventory and capital gains or losses, rose to €32 million (US$45.96 million), from €5 million a year ago when it was hurt by major maintenance. That was well below analysts’ forecast of €49 million. Quarterly revenue grew 43% to €3.67 billion, also below the market’s forecast of €3.74 billion. (July 28, 2011)