Neste raises Q3 refining margin outlook, says Singapore ramp-up slowed

NESTE on Tuesday (Sep 12) raised its third-quarter margin outlook for the third quarter but the Finnish oil refiner and biofuels producer said a planned output ramp-up at its Singapore refinery had been slowed down by repair work.

Neste now expects its margin to be “significantly higher than in the second quarter” having previously said it expected it to be “slightly” higher.

Northwest European diesel and petrol margins have risen to a high level in the third quarter despite volatile oil markets, Neste said.

The Singapore ramp-up has been slowed by a recent shutdown at a new line for additional equipment inspection and repairs, it said.

Neste restarted production at the refinery in mid-August after an unexpected shutdown in June.

The sales volume impact of the ongoing inspection and repair works at the Singapore refinery is estimated at about 100,000 tons for the second half of 2023, mainly impacting fourth-quarter sales, Neste said.

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The company’s shares were down 0.4 per cent at 0722 GMT on Tuesday versus a 0.2 per cent drop in Finland’s benchmark share index. REUTERS