The Group’s results for 2011
Neste Oil’s revenue in 2011 totaled EUR 15,420 million (11,892 million). This increase resulted mainly from higher oil prices and higher sales volumes compared to 2010. The Group’s comparable operating profit for the year decreased to EUR 156 million from EUR 240 million reported in 2010. The latter figure included a one-time insurance compensation payment of EUR 48 million. Oil Products recorded a higher comparable operating profit year-on-year, whereas Renewable Fuels posted a significant operating loss. Oil Retail’s result was almost at the same level as in 2010. The Group’s fixed costs came in at EUR 613 million (643 million).
Oil Products’ full-year comparable operating profit was EUR 249 million (208 million), Renewable Fuels’ EUR -163 million (-65 million), and Oil Retail’s EUR 57 million (60 million). The comparable operating profit of the Others segment totaled EUR 9 million (45 million) and included a contribution of EUR 19 million (25 million) by Nynas.
The Group’s full-year IFRS operating profit was EUR 273 million (323 million), which was impacted by inventory gains totaling EUR 97 million (121 million). Pre-tax profit was EUR 206 million (296 million), profit for the period EUR 160 million (231 million), and earnings per share EUR 0.62 (0.89).
Given the capital-intensive nature of its business, Neste Oil uses return on average capital employed after tax (ROACE) as its primary financial target. ROACE figures are based on comparable results. As of the end of 2011, the rolling twelve-month ROACE was 2.6% (2010 financial year: 4.6%)
|Group key figures, MEUR|
|Comparable operating profit||156||240|
|- inventory gains/losses||97||121|
|- changes in the fair value of open oil derivatives||9||24|
|- capital gains/losses||11||-62|
|IFRS operating profit||273||323|
|Comparable operating profit|
|IFRS operating profit|