http://www.nesteoil.com/
Neste Oil "buy," price objective raised
Monday, October 17, 2005 7:53:45 AM ET Merrill Lynch
LONDON, October 17 (newratings.com) - Analysts at Merrill Lynch reiterate their "buy" rating on Neste Oil Corp (ticker: NEF). The 12-month price objective has been raised to €32.
In a research note published this morning, the analysts mention that the European refining margin estimates for 4Q05 and 2006 have been raised by 22% and 55%, respectively. Quality refining assets are likely to trade at least in-line with the modern-day replacement values and Neste Oil has a leading portfolio of refining assets, the analysts say. Merrill Lynch expects the company to generate record earnings in 4Q05.
http://www.ariva.de/quote/profile.m?secu=708587&kx=s
Pioneering a new generation of biodiesel
Neste Oil’s new, proprietary NExBTL technology for producing biodiesel marks an important step forward in efforts to meet the growing demand for this type of fuel, as it offers not only valuable production-related benefits, but also results in a fuel with excellent product properties, particularly at low temperatures.
Various companies have experimented with the idea of combining a natural raw material with an oil refining process to produce a biofuel capable of competing with hydrocarbon-based equivalents, but with limited success – until NExBTL that is.
A €100 million, 170,000 t/a plant currently under construction at Porvoo in Finland, and due for completion in summer 2007, will showcase the new technology.
“We are the first oil company to successfully develop a biodiesel production process, and the first to build significant capacity for producing biodiesel,” according to Development Manager Raimo Linnaila of Neste Oil’s Components Unit. “The new fuel is also an ideal fit with Neste Oil’s overall strategic commitment to low-emission fuels.”
NExBTL technology is the outcome of manufacturing tests that begun in the mid-1990s, and an R&D programme launched in 2001, involving not only a team from Neste Oil itself, but also people from various Finnish universities and VTT, the Technical Research Centre of Finland.
One of the major strengths of the new technology, from a production point of view, is that it can use either vegetable oil or animal fat as its raw material. This enables input to be sourced both flexibly and cost-effectively.
Not only that, the quality of the end-product fuel is very consistent, and free from the quality fluctuations typical of the methyl ester currently sold as biodiesel in Central Europe, for example.
In addition to consistent quality, Neste Oil’s biodiesel offers good cold tolerance and storage properties, a high cetane number, and extremely low exhaust emissions. The good performance of NExBTL biodiesel at low temperatures, an area where methyl ester-type biodiesels normally come unstuck, is a particular advantage.
Tests carried out by Neste Oil and various automotive manufacturers have shown that NExBTL biodiesel functions excellently in both car and truck engines, and performs within the key requirements set for new fuels over the next few years, in areas such as particulate and nitrogen oxide emissions.
NExBTL biodiesel is equally suitable for both old and new vehicles, and promises to be an ideal solution for meeting the growing demand for biodiesel. The EU, for example, has set a goal of having close to 6% of vehicles in the Community running on biofuels by the end of 2010, and countries such as Germany, France, and Sweden have already introduced tax breaks to promote the use of biofuels.
http://www.tekes.fi/eng/news/uutis_tiedot.asp?id=4462
UPDATE: Neste Oil Jul-Sep op profit falls to EUR 99 mln
25.10.2005 at 12:27
(Adds stock reaction.)
Finland's Neste Oil, which runs refineries and petrol stations, on Tuesday reported third-quarter earnings before interest and tax (EBIT) of 99 million euros, down from 111 million a year ago.
The July-to-September profit was weighed down by a five-week shutdown of the Porvoo refinery, which coincided with a rise in petroleum product prices.
Risto Rinne, the chief executive, said in a statement that Neste Oil was unable to efficiently exploit the exceptionally lucrative markets.
However, the rise in the prices of crude and refined products, thanks to the devastating hurricane season, is visible in Neste Oil's third-quarter sales, which rose to 2.59 billion euros from the year-ago 2.09 billion.
Neste Oil's total refining margin rose to 9.25 US dollars a barrel from 6.52 dollars a year ago.
At 1210 hours (GMT+3), shares in Neste Oil were fetching 24.68 euros, down by 2.64 per cent from the Monday close.
/STT/
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