You are here
Neste says U.S. tax credit to lift Q1 profit
HELSINKI, Feb 9 (Reuters) - Finnish oil refiner and biofuel
producer Neste expects the reinstatement of the
renewable fuel tax credit in the United States to increase its
first quarter profit, the company said on Friday.
The retroactive approval of the 2017 biodiesel credit was
part of the budget deal approved by the U.S. Senate and House of
Representatives, averting a government shutdown.
Neste did not disclose a number for the profit boost, but
said it would be "somewhat lower than in the full year 2016".
The company did not disclose the 2016 number either, but
analysts estimated it to be around 100 million euros ($122
million). The credit added 169 million euros to Neste's
operating profit in 2015.
Biofuel blenders in the United States are eligible for a tax
credit of $1 per gallon, and the benefit is shared between the
buyer and seller.
Neste exports renewable diesel to the U.S. market from its
plants in Singapore and Rotterdam.
Earlier this week, Neste posted better-than-expected 2017
($1 = 0.8168 euros)
(Reporting by Tuomas Forsell; Editing by Mark Potter)
© Copyright Thomson Reuters 2018. Click For Restrictions - http://about.reuters.com/fulllegal.asp