The following is a summary of the Neste Oyj (NTOIF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Neste Oyj reported Q1 2024 EBITDA of €551 million, a significant decrease from the previous year due to market challenges in U.S. and European renewables.

• The lower financial result was primarily due to decreased renewable sales margins and increased sales volumes in renewable products.

• In the Oil Products segment, a total refining margin of $20.4 per barrel was achieved in Q1, showing improvement from the previous quarter, despite a year-over-year decrease.

• Following competitive restructuring, the company anticipates annual cost savings of €50 million.

• Cash flow in Q1 was negatively impacted by inventory build-up in anticipation of upcoming maintenance turnarounds.

Business Progress:

• Neste Oyj completed an organizational streamlining and restructuring in Q1 to improve long-term competitiveness.

• The SAF (Sustainable Aviation Fuel) business is expected to grow quarter over quarter as the company focuses on strategic end-to-end optimization, and prepares for a market turnaround.

• The Rotterdam project is set to begin in the third quarter of 2024, which will support SAF sales growth.

• Neste Oyj is monitoring regulatory developments in multiple European countries and expects an increase in demand due to countries considering or implementing mandatory blending.

• Despite facing market challenges, Neste maintains a stable hedging policy and is working to balance their inventory, particularly in the second half of the year.

• Additionally, the company is focusing on increased use of waste and residue feedstocks and building logistical and commercial capabilities.

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