Production and sales

Production

Neste Oil’s production totaled 15.2 million tons (13.6 million) in 2011, of which 0.7 million tons (0.3 million) took the form of NExBTL renewable diesel. Increased output was mainly due to the major maintenance turnaround at the Porvoo refinery in spring 2010, but also reflected increasing volumes from the Singapore renewable diesel refinery.

The Porvoo refinery operated at an average capacity utilization rate of 85% (82%) in 2011. Output was impacted by maintenance work carried out on Diesel Line 4 in the spring and in October, and some operational outages. The utilization rate at Naantali was 85% (84%), affected by outages in the spring and lower feed levels in the fall due to the weak market situation. 

The proportion of Russian Export Blend (REB) in Neste Oil’s total refinery input at Porvoo and Naantali was 66% (68%) in 2011. Production costs at the Porvoo and Naantali refineries totaled USD 4.3/bbl (4.0) for the year as a whole. 

The company’s renewable diesel refineries were run at limited utilization, mainly due to lower-than-planned sales volumes.

Sales

The second consecutive cold and snowy winter kept middle distillates demand strong and increased Neste Oil’s diesel fuel sales in early 2011. Growth was robust, particularly in domestic sales. Diesel continued to account for close to 40% of total sales, while the proportion of gasoline continued to drop. Refinery turn arounds in Canada in the spring and a number of shutdowns in the second half of the year shifted the focus of Neste Oil’s gasoline exports to North America.

Total sales volume increased by over 5%, with demand for both fossil and renewable diesel continuing to grow steadily.