Biofuel maker Neste expects limited impact from tariffs, but supply glut still weighs

Reuters

Mon, Apr 28, 2025, 11:17 PM 2 min read

(Reuters) -Finnish biofuel shaper and lipid refiner Neste expects U.S. tariffs volition person lone a constricted nonstop interaction connected its business, it said connected Tuesday, but warned of continuous oversupply successful renewable substance and marketplace volatility.

"We expect the European policymakers to safeguard a level playing tract and competitiveness of European concern companies," Neste Chief Executive Officer Heikki Malinen said successful a statement.

Excess proviso of renewable fuel, anemic request and planetary economical uncertainty person deed the profitability of the Finnish group, which warned successful February of ongoing challenges ahead.

Neste, which has a associated task with Marathon Petroleum successful California, added that the U.S. marketplace remained important for the company. However, the removal of Blender’s Tax Credit (BTC) has led the institution to reoptimise its Singapore shipments, Malinen said. BTC was a cleanable substance taxation credits programme projected by the Biden administration, but aboriginal scrapped.

The company's comparable first-quarter net earlier interest, taxes, depreciation and amortisation (EBITDA) fell 62% from a twelvemonth earlier to 210 cardinal euros ($239.15 million), and Malinen said the show remained "unsatisfactory".

Analysts successful a company-provided statement had expected 211.7 cardinal euros connected average.

Neste's income borderline successful the renewables products conception fell to $310 per tonne successful the 4th from $526 successful the archetypal 4th of 2024, but bushed the mean anticipation of $242 per tonne.

But portion the institution said it inactive expects its margins to amended successful 2025, it warned of the interaction from lipid terms movements amid geopolitical uncertainty.

Earlier successful April the radical reduced astir 510 positions globally, successful a determination expected to bring yearly savings of astir 65 cardinal euros.

Neste shares were up much than 10% successful Helsinki astatine 0725 GMT.

($1 = 0.8781 euros)

(Reporting by Boleslaw Lasocki; Editing by Andrew Heavens, Kirsten Donovan and Kate Mayberry)