Neste: Into the unknown
The Q3 figures reported by Neste were well ahead of our expectations, reflecting which we raised our estimates for the current year. However, our focus is on earnings growth in the coming years, driven by volume growth in Renewable Products. In this respect, the outlook for next year is very cloudy due to several variables. In the longer term, however, we are confident that rising sales volumes from investments in Renewable Products will drive earnings growth, even if margins come under pressure from current peak levels.
Neste produces transport fuel and renewable fuels. Today, the largest operations and extraction are held in the Nordic market, where the company is active in the entire value chain, from extraction to delivery to port depots. In addition, the opportunity is given for direct sales where customers can pick up fuel at selected stations. The largest market is in the Nordic region, and the company is headquartered in Espoo, Finland.
Read more on company pageKey Estimate Figures2023-10-26
| 2022 | 23e | 24e | |
|---|---|---|---|
| Revenue | 25,707.4 | 21,931.1 | 23,569.8 |
| growth-% | 69.7 % | -14.7 % | 7.5 % |
| EBIT (adj.) | 2,898.0 | 2,641.5 | 2,086.8 |
| EBIT-% (adj.) | 11.3 % | 12.0 % | 8.9 % |
| EPS (adj.) | 3.02 | 2.90 | 2.13 |
| Dividend | 1.52 | 1.10 | 1.15 |
| Dividend % | 3.5 % | 3.5 % | 3.7 % |
| P/E (adj.) | 14.3 | 10.9 | 14.8 |
| EV/EBITDA | 11.3 | 9.7 | 8.7 |
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