Neste Oil (OMX: NES1V) said in a press release that it is investigating the cause of an oil spill from an oil storage in Kajaani. A passer-by noticed the leak on Sunday. According to estimates, thousands of litres of fuel oil have escaped into a stream that empties into a major lake called Oulujärvi.
Neste oil is the operator of a government stockpile owned by Maintenance and Supply Security Centre. The company is sorry about what has happened and says it is committed to use all necessary measures in the cleanup. The leak was plugged shortly following its discovery, but it had already been going on since Friday. Its apparent cause is a pumping system malfunction.
Showing posts with label Neste. Show all posts
Showing posts with label Neste. Show all posts
Monday, 30 April 2012
Thursday, 29 March 2012
Neste and St1 Finnish Diesel fuel price war
Online newspaper Taloussanomat wrote yesterday on the escalating competitive situation in Finnish diesel fuel retail. Changes in the taxation had raised the price of of the liquid over 1.6 Euros per litre to match gasoline prices but whilst gasoline price has continued to rise, diesel fuel has retreated in recent weeks as stations have been competing on price.
Chairman of the board of St1 Mika Anttonen blames Neste Oil (OMX: NES1V) for dumping prices. He says he has contacted competition authorities and told Taloussanomat, that he was told dumping prices is legal. Neste Oil on its part said that St1 has started a price war and that they are responding. There is large variability in prices depending on the location at the moment. Anttonen said that a government owned firm such as Neste Oil should not compete in such a manner that he dubbed balance sheet competition, a rudimentary term for trying to undermine competitor for longer term gains.
This would be an understandable tactic if Neste Oil were a natural monopoly with certain cost advantages. While the company maintains a dominant position in oil transport the retail side is oligopolistic with Finnish retailing cooperative S Group owned ABC and Russian Lukoil’s subsidiary Teboil and some smaller fringe players also taking part. Neste has also been betting heavily on biodiesel.
Today Anttonen said that gasoline will soon cost over 2 Euros. It has often appeared as if Mr. Anttonen is trying to play negotiations with competitors through national media to reach some sort of tacit agreement. This is not the first time that he communicates a price target for the coming weeks that is far above the current market price.
It would be surprising if competition authorities have not noticed this. Even if the agenda is simply to give his expert opinion, it can lead to unwanted consequences. He has also rued entering fuel retail business saying that 5-6 cents per litre profit margin isn't enough. St1 did manage to consolidate the market by purchasing Shell's Finnish fuel stations in 2010.
Chairman of the board of St1 Mika Anttonen blames Neste Oil (OMX: NES1V) for dumping prices. He says he has contacted competition authorities and told Taloussanomat, that he was told dumping prices is legal. Neste Oil on its part said that St1 has started a price war and that they are responding. There is large variability in prices depending on the location at the moment. Anttonen said that a government owned firm such as Neste Oil should not compete in such a manner that he dubbed balance sheet competition, a rudimentary term for trying to undermine competitor for longer term gains.
This would be an understandable tactic if Neste Oil were a natural monopoly with certain cost advantages. While the company maintains a dominant position in oil transport the retail side is oligopolistic with Finnish retailing cooperative S Group owned ABC and Russian Lukoil’s subsidiary Teboil and some smaller fringe players also taking part. Neste has also been betting heavily on biodiesel.
Today Anttonen said that gasoline will soon cost over 2 Euros. It has often appeared as if Mr. Anttonen is trying to play negotiations with competitors through national media to reach some sort of tacit agreement. This is not the first time that he communicates a price target for the coming weeks that is far above the current market price.
It would be surprising if competition authorities have not noticed this. Even if the agenda is simply to give his expert opinion, it can lead to unwanted consequences. He has also rued entering fuel retail business saying that 5-6 cents per litre profit margin isn't enough. St1 did manage to consolidate the market by purchasing Shell's Finnish fuel stations in 2010.
Wednesday, 25 January 2012
Novo Nordisk tops clean capitalism list
Nordic companies are clearly overrepresented in Corporate Knights 8th annual ranking of the most sustainable companies in the world. Danish pharmaceutical company Novo Nordisk (OMX: NOVO B) was chosen as the most sustainable company by a wide margin. Last year Novo was down in 16th place. It scored particularly well in this study in energy productivity and in CEO vs. average employee compensation.
The idea of the list is to find companies who not only act in the interests of the business but also for the entire planet in doing so. That means that companies fully take social, economic and ecological costs and benefits into account. A situation where a company’s private optimum level of production differs from the social optimum due to externalities is one type of market failure, which is not normally addressed on the corporate level.
Other Nordic companies close to the top are oil producer Statoil ASA (OSE:STL) at number 3 and Danish biotech company Novozymes A/S (OMX: NZYM B) at number four. Aluminium producer Norsk Hydro ASA (OSE: NHY) and Swedish industrial group Atlas Copco (OMX: ATCO A, ATCO B)) round up the top ten.
Below the top ten one can also find Swedish telecom company TeliaSonera (OMX: TLSN, OMXH: TLS1V) at 13, oft-maligned oil refining and marketing company Neste Oil Oyj (OMX: NES1V) from Finland at 19, Danish wind turbine manufacturer Vestas Wind Systems A/S (OMX: VWS) at number 31, Swedish heavy trucks and buses manufacturer Scania AB (OMX: SCV B) at 36, Reverse vending machines firm Tomra Systems ASA (OSE: TOM) at number 39, Finnish retailing conglomerate Kesko Oyj (OMX: KESB) at 43, Norwegian financial services company StoreBrand ASA (OSE: STB) at 54, Swedish retail-clothing giant H & M Hennes & Mauritz AB (STO:HM B) at 67 and Danish medical devices firm Coloplast A/S (OMX: COLO B) on 84th place.
The idea of the list is to find companies who not only act in the interests of the business but also for the entire planet in doing so. That means that companies fully take social, economic and ecological costs and benefits into account. A situation where a company’s private optimum level of production differs from the social optimum due to externalities is one type of market failure, which is not normally addressed on the corporate level.
Other Nordic companies close to the top are oil producer Statoil ASA (OSE:STL) at number 3 and Danish biotech company Novozymes A/S (OMX: NZYM B) at number four. Aluminium producer Norsk Hydro ASA (OSE: NHY) and Swedish industrial group Atlas Copco (OMX: ATCO A, ATCO B)) round up the top ten.
Below the top ten one can also find Swedish telecom company TeliaSonera (OMX: TLSN, OMXH: TLS1V) at 13, oft-maligned oil refining and marketing company Neste Oil Oyj (OMX: NES1V) from Finland at 19, Danish wind turbine manufacturer Vestas Wind Systems A/S (OMX: VWS) at number 31, Swedish heavy trucks and buses manufacturer Scania AB (OMX: SCV B) at 36, Reverse vending machines firm Tomra Systems ASA (OSE: TOM) at number 39, Finnish retailing conglomerate Kesko Oyj (OMX: KESB) at 43, Norwegian financial services company StoreBrand ASA (OSE: STB) at 54, Swedish retail-clothing giant H & M Hennes & Mauritz AB (STO:HM B) at 67 and Danish medical devices firm Coloplast A/S (OMX: COLO B) on 84th place.
Saturday, 10 December 2011
Other week 49 2011 news from Nordic companies
Here are some additional newsworthy events in brief:
Financial Times is reporting that Nokia is coaxing interest of potential buyers to divest its luxury phone brand Vertu. Some private equity firms seem interested and the sales price should be several hundred million Euros.
Eu/Norway fish talks for 2012 North Sea fisheries resulted in increases for herring, haddock and whiting quotas (with North Sea herring quota more than doubled to 405,000 tons), with cod and saithe quotas down a notch. Further talks will be made for mackerel total allowed catch as a solution in the mackerel war with Faroe Islands and Iceland is sought after.
Christmas demand has raised Norwegian salmon spot prices some 20% within a few weeks. While still far away from 45 NOK per kilo levels of this summer, this breaks a lengthy trend straight down and farmed salmon companies have responded positively.
Vestas turbine in Ayrshire wind farm, Scotland caught fire in hurricane Bawbag.
Maersk Drilling received LOA from Det Norske Oljeselskab (OSE: DETNOR) to Draupne license in the North Sea for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014. The total value of the three year contract is over 400 million USD.
Outotec has acquires furnace refractory demolition business Kiln Services Australia. The company envisions doubling Kiln’s annual sales over the next three years.
Højgaard Industri, a part of Højgaard Holding (CPH: HOEJ B) won a new management contract with Banedanmark for the production of concrete sleepers at the Fredericia facility. The previous contract with between the companies was coming to a close and Højgaard Industri won out in the contract award procedure.
There have been wild swings in Frontline (OSE: FRO) stock after its creative restructuring plan was made public this week.
Kone Corporation will supply elevators and escalators to Lishui Wandi Plaza. The large eight building complex in the city of Lishui in Zhejiang province should be completed in 2013.
Clas Ohlson (STO: CLAS B) missed expectations for 1.5.2011-31.10.2011 period.
TTS Group ASA won two contracts from Hyundai Mipo Dockyard co. Ltd worth around 117,5 million NOK in total.
Purchase-to-pay and Financial Management solutions software provider. Basware Corporation lowers 2011 estimates.
Cevian keeps buying into Tieto ((OMXH: TIE1V, OMXS: TIEN).
Neste Oil is selling its 50% portion of iso-octane, a gasoline component produced from Butane, plant in Edmonton, Canada to Keyera Corp for 99 million USD.
Financial Times is reporting that Nokia is coaxing interest of potential buyers to divest its luxury phone brand Vertu. Some private equity firms seem interested and the sales price should be several hundred million Euros.
Eu/Norway fish talks for 2012 North Sea fisheries resulted in increases for herring, haddock and whiting quotas (with North Sea herring quota more than doubled to 405,000 tons), with cod and saithe quotas down a notch. Further talks will be made for mackerel total allowed catch as a solution in the mackerel war with Faroe Islands and Iceland is sought after.
Christmas demand has raised Norwegian salmon spot prices some 20% within a few weeks. While still far away from 45 NOK per kilo levels of this summer, this breaks a lengthy trend straight down and farmed salmon companies have responded positively.
Vestas turbine in Ayrshire wind farm, Scotland caught fire in hurricane Bawbag.
Maersk Drilling received LOA from Det Norske Oljeselskab (OSE: DETNOR) to Draupne license in the North Sea for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014. The total value of the three year contract is over 400 million USD.
Outotec has acquires furnace refractory demolition business Kiln Services Australia. The company envisions doubling Kiln’s annual sales over the next three years.
Højgaard Industri, a part of Højgaard Holding (CPH: HOEJ B) won a new management contract with Banedanmark for the production of concrete sleepers at the Fredericia facility. The previous contract with between the companies was coming to a close and Højgaard Industri won out in the contract award procedure.
There have been wild swings in Frontline (OSE: FRO) stock after its creative restructuring plan was made public this week.
Kone Corporation will supply elevators and escalators to Lishui Wandi Plaza. The large eight building complex in the city of Lishui in Zhejiang province should be completed in 2013.
Clas Ohlson (STO: CLAS B) missed expectations for 1.5.2011-31.10.2011 period.
TTS Group ASA won two contracts from Hyundai Mipo Dockyard co. Ltd worth around 117,5 million NOK in total.
Purchase-to-pay and Financial Management solutions software provider. Basware Corporation lowers 2011 estimates.
Cevian keeps buying into Tieto ((OMXH: TIE1V, OMXS: TIEN).
Neste Oil is selling its 50% portion of iso-octane, a gasoline component produced from Butane, plant in Edmonton, Canada to Keyera Corp for 99 million USD.
Monday, 1 August 2011
Neste divests its gas business in Estonia
Neste Oil (OMXH: NES1V) has sold its majority owned Estonian subsidiary AS Reola GAAS to Estonian-based Alexela Group for an undisclosed price. The divestment will have a minor positive impact on Q3 results. AS Reola Gaas sells bottled, bulk, and automotive gas to mainly industrial customers. Neste Oil is down 4.5% to 8.72 Euro two hours before closing.
Thursday, 28 July 2011
Neste Oil second quarter 2011 comments
Neste Oil’s (OMX: NES1V) Q2 revenue increased to 3 647 million Euro. Second quarter comparable operating profit was 32 million. Net cash from operations was negative 126 million Euros. Second quarter EPS was 25 cents and EPS for the first half is now 71 cents. Neste Oil is down 10% close to 9 Euro per share.
The refining market weakened towards the end of Q2 due to concerns over global economic developments. Neste Oil thinks that it, as a ”complex refiner”, will outperform peers in an uncertain environment. Neste feels that part of that comes from diesel margins continuing to outperform other product margins.
Neste’s total refining margin was USD 8.99/bbl. Neste benefits when discount of Urals crude to Brent is large. The company foresees the difference to average USD 2.50-3.00 /bbl for the year. Neste’s Oil Products’ second-quarter comparable operating result was 60 million Euros.
Neste Oil’s renewable business is in ramp-up mode and will generate a loss for the year. The renewable diesel plant in Rotterdam has been completed. Neste was disappointed with renewable diesel sales for H1 but says the sales are set for a large increase in Q3. Then again in outlook the company says that despite higher sales, Renewable Fuels third-quarter result is expected to be weaker than in Q2 on high unit costs and start-up costs from Rotterdam plant. Second quarter operating loss was 55 million Euro for the business unit. Neste has introduced new renewable feedstocks such as soybean oil, camelina, and jatropha and has more ISCC-certified feedstock available.
The refining market weakened towards the end of Q2 due to concerns over global economic developments. Neste Oil thinks that it, as a ”complex refiner”, will outperform peers in an uncertain environment. Neste feels that part of that comes from diesel margins continuing to outperform other product margins.
Neste’s total refining margin was USD 8.99/bbl. Neste benefits when discount of Urals crude to Brent is large. The company foresees the difference to average USD 2.50-3.00 /bbl for the year. Neste’s Oil Products’ second-quarter comparable operating result was 60 million Euros.
Neste Oil’s renewable business is in ramp-up mode and will generate a loss for the year. The renewable diesel plant in Rotterdam has been completed. Neste was disappointed with renewable diesel sales for H1 but says the sales are set for a large increase in Q3. Then again in outlook the company says that despite higher sales, Renewable Fuels third-quarter result is expected to be weaker than in Q2 on high unit costs and start-up costs from Rotterdam plant. Second quarter operating loss was 55 million Euro for the business unit. Neste has introduced new renewable feedstocks such as soybean oil, camelina, and jatropha and has more ISCC-certified feedstock available.
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