Neste, a liquid fuel company, experienced a nearly 5% decrease in their share price in the afternoon. To address investor concerns during the quiet season, Neste held a “pre-silent call” on Wednesday afternoon with CFO Martti Ala-Harkonen and director of investor relations Anssi Tammilehto present. During the call, Neste discussed the impact of lower diesel prices on their business in the second quarter, with a weaker market situation compared to the first quarter.
Following a negative profit warning on May 14, Neste reduced their 2024 comparable sales margin guidance for renewable products due to high raw material prices in European and American markets. However, the Chinese market offers competitive pricing advantages for the company. Concerns were raised about the Martinez production plant affecting sales margins as it is currently operating at only 50% capacity. Neste anticipates an increase in capacity to 75% in the third quarter.
During the call, Neste refrained from commenting on their quarter’s results or their standing in relation to previous guidance. The company’s CEO Matti Lehmus was not mentioned accurately in an earlier version of this report.
