Neste Oil - Financial Statement Release

Neste Oil's Financial Statements for 2010

Neste Oil Corporation
Stock Exchange Release
4 February 2011 at 1 pm

Neste Oil's Financial Statements for 2010
- The Group's full-year comparable operating profit improved to EUR 240 million
compared to EUR 116 million in 2009, despite a major turnaround at the Porvoo
refinery
- The fourth-quarter comparable operating profit was EUR 90 million (Q4/2009:
-29 million)

2010 in brief:
  * Comparable operating profit was EUR 240 million (2009: 116 million)
  * IFRS operating profit was EUR 323 million (2009: 335 million)
  * Total refining margin was USD 8.14/bbl (2009: 7.35)
  * Net cash from operations was EUR 1,105 million (2009: 177 million)
  * Investments totaled EUR 943 million (2009: 863 million), of which EUR 556
    million was spent on the renewable diesel projects in Singapore and
    Rotterdam
  * Leverage ratio was 42.6% (2009: 46.3%) at the end of the year
  * The largest maintenance turnaround in the history of the Porvoo refinery
    took place in the spring and had a negative impact of EUR 65 million on the
    comparable operating profit
  * The new renewable diesel plant in Singapore was completed and started up on
    budget and on schedule in November
  * The Board of Directors will propose a dividend of EUR 0.35 per share (2009:
    0.25).


Fourth quarter of 2010 in brief:
  * Comparable operating profit came in at EUR 90 million (Q4/2009: -29
    million)
  * IFRS operating profit was EUR 146 million (Q4/2009: 9 million)
  * Total refining margin was USD 9.67/bbl (Q4/2009: 5.85)  * Sales volumes reached a record high of 4.232 million tons (Q4/2009: 3.559)
  * Net cash from operations was EUR 483 million (Q4/2009: -225 million)
  * Refinancing of the company's EUR 1.5 billion credit facility was completed
    successfully.


President & CEO Matti Lievonen:"2010 was a clearly better year for us than 2009, thanks to the second-strongest
growth in oil demand in 30 years, which drove refining margins higher year-on-
year. This was reflected in our comparable operating profit, which more than
doubled from the low we reported a year ago. Achievements reached in 2010 were
enhancing efficiency and cost control across the entire organization, carrying
out the largest maintenance turnaround in our history at the Porvoo refinery, as
well as the start-up of the new Singapore renewable diesel plant in November.
The next important milestone will be the completion and start-up of our fourth
renewable diesel plant in Rotterdam in mid-2011.

The last quarter of 2010 was positive, as we continued to improve our refining
margins and operational performance. Our refineries' ability to capitalize on
market opportunities was particularly highlighted during the quarter and we sold
record volumes of refined products, with winter-grade diesel fuel accounting for
a large share of this. All this makes me confident that we are well-placed to
benefit from the stronger refining market conditions predicted for 2011."

The Group's full-year results for 2010
Neste Oil's revenue in 2010 totaled EUR 11,892 million (9,636 million). This
increase resulted from higher oil prices compared to 2009. The Group's
comparable operating profit for the year increased to EUR 240 million from EUR
116 million reported in 2009, and was driven by higher refining margin and an
insurance compensation payment of EUR 48 million received in the first quarter.
The maintenance turnaround at the Porvoo refinery in April and May had a
negative impact of EUR 65 million. Oil Products and Oil Retail recorded a higher
comparable operating profit year-on-year, whereas Renewable Fuels posted lower
result. The Group's fixed costs declined to EUR 575 million (604 million),
excluding EUR 68 million related to the transfer of the Neste Oil Pension Fund
to outside management.

Oil Products' full-year comparable operating profit was EUR 208 million (105
million), Renewable Fuels' EUR -65 million (-29 million) and Oil Retail's EUR
60 million (50 million). The comparable operating profit of the Others segment
totaled EUR 45 million (-8 million), including an insurance compensation payment
received totaling EUR 48 million. Profit from associated companies and joint
ventures accounted for EUR 15 million (20 million) of the comparable operating
profit booked in the Others segment.

The Group's full-year IFRS operating profit was EUR 323 million (335 million),
which was impacted by inventory gains totaling EUR 121 million (261 million).
Pre-tax profit was EUR 296 million (296 million), profit for the period EUR 231
million (225 million), and earnings per share EUR 0.89 (0.86).

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 2010, the
rolling twelve-month ROACE was 4.6% (2009 financial year: 2.5%)


The Group's fourth quarter results in 2010
Neste Oil's revenue during October-December 2010 totaled EUR 3,526 million
(2,491 million). The Group's comparable operating profit was EUR 90 million (-
29 million). The significant increase year-on-year resulted from stronger
refining margins and improved profitability at Oil Retail. The comparable
operating profit for the fourth quarter of 2009 included a negative impact of
EUR 30 million from non-recurring items.

Oil Products' fourth-quarter comparable operating profit was EUR 108 million (-
11 million), Renewable Fuels' EUR -13 million (-10 million), Oil Retail's EUR
18 million (5 million), and Others' EUR -16 million (-11 million). Profits from
associated companies and joint ventures totaled EUR -1 million (-1 million).

Neste Oil's IFRS operating profit during October-December was EUR 146 million (9
million). Inventory gains amounted to EUR 61 million, compared to EUR 58 million
in the fourth quarter of 2009. An additional negative item of EUR 10 million was
booked as part of the transfer of the Neste Oil Pension Fund to outside
management. The original transaction took place in April and EUR 58 million was
booked to the second-quarter IFRS operating profit. The fourth-quarter pre-tax
profit amounted to EUR 142 million (4 million), profit for the period EUR 107
million (1 million), and earnings per share EUR 0.42 (-0.01).

Outlook
The market environment appears to be strengthening in 2011 compared to 2010,
thanks to increasing demand for oil and petroleum products in emerging markets
in particular. In addition, less new capacity is expected to come on stream
during the year, leading to a somewhat tighter supply and demand balance on the
refining market.

The market appears to expect that margins for complex refiners, such as Neste
Oil, will increase in 2011, supported by stronger oil demand and a lower level
of inventories compared to 2010. Diesel is projected to be the strongest part of
the barrel going forward, while gasoline margins are expected to stay roughly at
2010 levels. Weaker heavy fuel oil margins will also benefit complex refiners.

Neste Oil expects to have a good operational year at its Porvoo and Naantali
refineries, with higher production volumes.

The ramp-up of the renewable fuels business will continue in 2011. Sales volumes
of renewable diesel are expected to increase as volumes from the recently
commissioned Singapore plant increase, and the Rotterdam plant is due to come on
stream in the second half of the year. The progress of biofuel legislation in
Europe and the US will play an important role in sales development. When
combining this with continued weak renewable diesel margins, the comparable
operating profit of the Renewable Fuels segment is expected to remain negative
in 2011. Renewable Fuels' comparable operating loss is expected to be higher in
the first quarter of 2011 than in the fourth quarter of 2010.

Increased demand for diesel looks set to continue on the Finnish retail market,
whereas gasoline demand will probably continue to decline. The same trend in the
case of diesel is likely to be seen in the Baltic countries, where the outlook
for gasoline is slightly positive. Demand is anticipated to increase for both
products in Northwest Russia.

The Group's fixed costs are estimated to be roughly EUR 650 million in 2011
compared to EUR 575 million in 2010, which is largely due to higher maintenance
and personnel costs at the new plants.

The Group's investments are expected to be around EUR 300 million (892 million),
of which maintenance investments will account for 176 million (245 million),
strategic investments 113 million (633 million), and productivity investments
11 million (14 million).

Dividend distribution proposal
The parent company's distributable equity as of 31 December 2010 amounted to EUR
987 million, and there have been no material changes in the company's financial
position since the end of the financial year. The Board of Directors will
propose to the Annual General Meeting that Neste Oil Corporation pay a cash
dividend of EUR 0.35 per share for 2010, totaling EUR 90 million based on the
number of registered shares as of 3 February 2011.

New disclosure procedure
Neste Oil follows the new disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority and hereby publishes
its financial statement bulletin enclosed to this stock exchange release. Neste
Oil's Financial Statements bulletin is available in its entirety on the
company's web site atwww.nesteoil.com Neste Oil will follow this procedure in
disclosing Interim Reports and Financial Statements in future.

Further information:
Matti Lievonen, President & CEO, tel. +358 10 458 11
Ilkka Salonen, CFO, tel. +358 10 458 4490
Investor Relations, tel. +358 10 458 5132

News conference and conference call
A press conference in Finnish on the full-year and fourth-quarter results will
be held today, 4 February 2011, at 2:00 p.m. EET at the company's headquarters,
Keilaranta 21, Espoo. www.nesteoil.com will feature English versions of the
presentation materials. A conference call in English for investors and analysts
will be held on 4 February 2011 at 4:00 pm Finnish / 2:00 pm London / 9:00 am
New York. The call-in numbers are as follows: Europe: +44 (0)20 3140 8286, US
+1 718 354 1152 (confirmation code: 4292240).  The conference call can be
followed at Neste Oil'swebsite. An instant replay of the call will be available
until 11 February 2011 at +44 (0)20 7111 1244 for Europe and +1 347 366 9565 USA
for the US (confirmation code: 4292240#).


[HUG#1485545]

Attachments:

Neste Oil s financial statements for 2010.pdf