Finnish fuel business Neste has reported an operating profit of €1.41 billion in full-year 2020, alongside total revenue of €11.75 billion, following what it said was a year of 'challenges and disruptions'.
This compares to a profit of €1.96 billion and revenue of €15.84 billion for the previous year.
The group, which operates close to 1,000 service stations in Finland and the Baltic countries, said that its performance was impacted by a lower crude oil price and lower sales volumes of conventional oil products.
'Oil Products suffered from a historically weak refining market, caused by the global COVID-19 related demand destruction and oversupply,' the company said. 'This development accelerated the need to improve the long-term competitiveness of the refining business, and restructuring measures.'
Its Marketing & Services arm, which includes its forecourt operations, reported revenue of €3.05 billion (2019: €4.19 billion), as well as seeing an improved profit performance, due to the recent divestment of its Russian business.
In late 2019, Neste completed the sale of its fuel business in northwest Russia, consisting of 75 service stations and a terminal, to PJSC Tatneft.
The group said that it has also upped its investment in renewable solutions and the shift to a circular economy – in 2020, it said that it helped its customer save 10.0mt in greenhouse gas emissions, and is aiming to increase this to 20.0mt by the end of the decade.
"In 2021, we will continue on our transformation journey to become a global leader in renewable and circular solutions," commented Neste Peter Vanacker, president and CEO.
"It will not be an easy year, as the pandemic is not over yet. It will rather be a year of transition, and it will take a lot of that Neste character and courage to navigate through these uncertain times."
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.