Finland’s Neste to slash round 600 jobs as quarterly core revenue slumps
Feb 13 (Reuters) – Finnish oil refiner and biofuel maker Neste (NESTE.HE), will slash round 600 positions as extra provide within the renewable gas market prompted a stoop in quarterly core revenue, it mentioned on Thursday.
The corporate’s shares fell 10% at 0815 GMT.
CEO Heikki Malinen mentioned in a press release,
Our present monetary efficiency is weak and never sustainable,
Malinen warned of steady challenges to the renewable market in 2025, including that rules in america are additionally inflicting uncertainty.
Falling costs of renewable gas, hit by weak demand and a provide glut, have prompted the Finnish group to lower its steering on the renewable gross sales margin thrice in 2024.
The corporate’s comparable earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) within the fourth quarter slumped 78% to 168 million euros ($175 million), lacking analysts’ common estimate of 308 million euros in a company-provided ballot.
Neste mentioned it expects its gross sales quantity for the renewable enterprise in 2025 to be increased than in 2024, when it stood at 3.7 million tons, however supplied no particular vary.
It is going to push again the scheduled begin of economic operations in its renewable refinery in Rotterdam, Netherlands, the corporate mentioned. The entire funding prices for the location had risen to 2.5 billion euros from 1.9 billion euros, it mentioned.
In November, the corporate needed to quickly shut down its Rotterdam refinery as a result of a hearth and the accident was anticipated to hit deliveries of renewable diesel for a number of weeks.
Neste on Thursday proposed a dividend payout of 0.20 euro per share for 2024, down from 1.20 euro it distributed a yr in the past.
RBC analysts mentioned in a word to shoppers,
We predict scrapping the dividend payout coverage is the precise choice,
($1 = 0.9586 euros)
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Finland’s Neste to slash round 600 jobs as quarterly core revenue slumps, supply
