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Finland's Neste reports 31% profit fall, delays Singapore expansion
[TALLINN] Finnish biofuel producer and oil refiner Neste reported a 31 per cent fall in second-quarter earnings on Thursday and delayed its expansion in Singapore, citing the pandemic.
"Without taking possible new waves of infections into consideration, the estimated startup of the plant is moved from the middle of 2022 to the first quarter of 2023," Neste said in a statement.
Neste said the delay would raise the cost of the expansion to 1.5 billion euros (S$2.4 billion) from an earlier estimate of 1.4 billion euros.
Its Singapore refinery produces renewable fuels, mainly from waste and residues such as used cooking oil, animal fat from food industry waste, fish fat from fish processing waste and residues from vegetable oil processing.
The Singapore expansion, Neste's single biggest investment to date, will increase its renewable fuel output 2.3 million tonnes per year from its current one million tonnes per year.
Neste said its April-June comparable operating profit fell to 255 million euros, beating the 221 million euros expected on average by analysts, Refinitiv Eikon data showed.
Revenue fell 37 per cent to 2.57 billion euros, hit by lower oil prices and weaker demand for oil products.