Neste Oil - Financial Statement Release

Neste Oil's Financial Statements for 2013

Neste Oil Corporation
Stock Exchange Release
4 February 2014 at 9:00 a.m. (EET)

Neste Oil's Financial Statements for 2013

Strong full-year result, with a 70% increase in comparable operating profit
2013 in brief:

  * Comparable operating profit totaled EUR 604 million (2012: EUR 355 million)

  * Total refining margin was USD 9.60/bbl (2012: USD 10.17/bbl)
  * Net cash from operations totaled EUR 839 million (2012: EUR 468 million)
  * Return on average capital employed (ROACE) was 11.8% (2012: 5.0%)
  * Leverage ratio was 30.0% as of the end of December (31.12.2012: 43.2%)
  * Comparable earnings per share was EUR 1.92 (2012: EUR 0.70)
  * The Board of Directors will propose a dividend of EUR 0.65 per share (2012:
    0.38), totaling EUR 167 million (2012: EUR 97 million).
Fourth quarter in brief:

  * Comparable operating profit totaled EUR 164 million (Q4/2012: EUR 77
    million)
  * Total refining margin was USD 9.53/bbl (Q4/2012: USD 10.99/bbl)
  * Net cash from operations was EUR 629 million (Q4/2012: EUR 327 million).
President & CEO Matti Lievonen:"Neste  Oil had  a very  good year  in 2013. We  achieved a comparable operating
profit  of  EUR  604 million  and  we  also further reduced our leverage through
strong cash flow generation.

This  was the first full  year of operations at  Renewable Fuels with all plants
running  at full  capacity. The  business succeeded  in increasing its sales and
customer  base, particularly in the US, and opened up a new market in Australia.
Margins  were very strong, both in Europe  and North America, during the summer,
but  declined towards the end  of the year. The  use of waste- and residue-based
feedstock  was successfully expanded to 52% of total renewable inputs. Renewable
Fuels  recorded  a  full-year  comparable  operating  profit  of EUR 273 million
compared to a loss of EUR 56 million in 2012.

After  a strong start to the year, Oil Products' reference refining margin began
to  decline and was lower on average during the year as a whole than in 2012, as
European  demand  for  petroleum  products  proved  soft and additional refining
capacity  was brought on-line in  the Middle East and  Asia. Productivity at the
Porvoo and Naantali refineries was good, which contributed to an increase in our
additional  margin. Oil Products  recorded a comparable  operating profit of EUR
280 million compared to EUR 396 million in 2012.

Oil  Retail  performed  very  well  due  to  stronger  margins  in  all markets,
especially  Finland and Northwest  Russia. The segment  generated a record full-
year  comparable operating profit of EUR 76 million in 2013, a clear improvement
on the EUR 58 million booked in 2012.

Supply  and  demand  balances  for  oil  in  Europe, together with uncertainties
related  to  political  decision-making  on  biofuel  mandates  and  incentives,
particularly  in  the  US,  have  been  reflected  in the oil and renewable fuel
markets.  These factors  are anticipated  to impact  our earnings during 2014 as
well.  Neste  Oil  has  a  strong  balance  sheet  and has been able to generate
improving  returns on  average capital  employed. We  are confident  that a good
result  will  be  reached  also  in  2014, and  we  expect the Group's full-year
comparable operating profit to be at the level of EUR 500 million."

The Group's fourth-quarter 2013 results

Neste  Oil's revenue  of EUR  4,604 million in  the fourth quarter was virtually
unchanged  from that  during the  last quarter  of 2012 (EUR 4,597 million). The
Group's  comparable  operating  profit  came  in  at EUR 164 million. Comparable
operating  profit for the  corresponding period in  2012 was EUR 77 million. Oil
Products'  result was negatively  impacted by reference  refining margins, which
were   lower  than  in  the  last  quarter  of  2012. Renewable  Fuels  improved
significantly  and Oil  Retail's performance  was also  clearly better than that
during  the  corresponding  period  in  2012. Oil Retail's result was positively
impacted  by higher  margins in  all markets,  particularly Finland.  The Others
segment  posted a loss, but the figure  was an improvement on the fourth quarter
of 2012, when various one-time items were also booked.

Oil Products' fourth-quarter comparable operating profit was EUR 72 million (116
million), Renewable Fuels' EUR 94 million (-2 million), and Oil Retail's EUR 14
million  (5  million).  The  comparable  operating  profit of the Others segment
totaled  EUR -14 million (-42 million);  associated companies and joint ventures
accounted for EUR -11 million (-8 million) of this figure, which mainly reflects
continued  unsatisfactory performance at Nynas. Nynas'  result includes a EUR 6
million provision for restructuring and asset write-offs at the Dundee refinery.

The  Group's IFRS operating  profit was EUR  185 million (52 million), which was
impacted  by inventory gains totaling EUR  16 million (losses of 48 million) and
changes  in the fair  value of open  oil derivatives totaling  EUR 4 million (23
million). Pre-tax profit was EUR 167 million (35 million), profit for the period
EUR 193 million (17 million), and earnings per share EUR 0.75 (0.06).

The Group's full-year results for 2013

Neste  Oil's revenue in  2013 totaled EUR 17,462 million  (17,853 million). This
decline  mainly resulted from lower trading activity  and the sale of the retail
business in Poland. The Group's comparable operating profit for the year was EUR
604 million,  an increase  of 70% on  the EUR  355 million reported in 2012. The
Renewable  Fuels  segment  recorded  a  significant  improvement  in  comparable
operating  profit year-on-year, and Oil Retail's  result was also clearly higher
than in 2012. Oil Products' full-year comparable operating profit was lower than
in  2012, mainly  due  to  lower  refining  margins. The Others segment improved
compared  to 2012, but remained negative. The Group's fixed costs came in at EUR
691 million  (664 million), an  increase that was  mainly caused by higher staff
and maintenance costs.

Oil  Products' full-year  comparable operating  profit was  EUR 280 million (396
million),  Renewable Fuels' EUR 273 million  (-56 million), and Oil Retail's EUR
76 million  (58 million). The comparable operating  profit of the Others segment
totaled  EUR -27  million (-43 million),  of which  Nynas accounted  for EUR -13
million (-6 million).

The  Group's full-year IFRS operating profit  was EUR 632 million (324 million),
which  was impacted by inventory losses totaling EUR 19 million (61 million) and
net  capital gains totaling EUR 43 million  (45 million). Pre-tax profit was EUR
561 million  (233  million),  and  profit  for  the  period EUR 524 million (159
million).  Comparable earnings per share were  EUR 1.92 (0.70), and earnings per
share  EUR  2.04 (0.61).  The  Group's  effective  tax rate was low 6.6% (31.9%)
mainly  due to  the write-down  of deferred  tax liabilities  resulting from the
Finnish  corporate tax rate change,  and the tax-exempt items,  such as the sale
proceeds of the retail network in Poland.

Return  on average  capital employed  after tax  (ROACE) and  leverage ratio are
Neste  Oil's financial targets. The company's  long-term ROACE target is 15% and
ROACE  figures  are  based  on  comparable  results.  As of the end of 2013, the
rolling  twelve-month ROACE was 11.8% (2012  financial year: 5.0%). The leverage
ratio target is 25-50%, and leverage was 30.0% (43.2%) at the end of 2013.

Outlook

Developments  in the  global economy  have been  reflected in the oil, renewable
fuel,  and  renewable  feedstock  markets,  and  the  volatility  is expected to
continue.  Global oil  demand is  generally forecasted  to pick  up more than 1
million  barrels per  day in  2014, but, as  in 2013, this  growth is  more than
compensated  by new  refining capacity  additions in  Asia and Middle East. This
development  is expected  to lead  to continued  high product imports to Europe,
putting   pressure   on  average  utilization  rates  of  simple  refineries  in
particular.  Complex refiners such as Neste Oil  are expected to remain the most
competitive.  Diesel is projected  to be the  strongest part of  the barrel, and
gasoline  margins  are  expected  to  improve  seasonally  during the spring and
summer.  While demand for premium-quality base  oils is continuing to grow, base
oil margins are likely to remain under pressure due to overcapacity.

Vegetable  oil  price  differentials  are  expected  to  vary, depending on crop
outlooks,  weather phenomena, and variations in demand for different feedstocks,
but   no   fundamental  changes  in  the  drivers  influencing  feedstock  price
differentials  are  expected.  Price  differentials  between  vegetable oils are
likely  to widen  from the  current narrow  levels during  the year 2014 in both
Europe and North America.

Uncertainties  regarding political  decision-making in  the US  are likely to be
reflected  in the renewable fuel markets.  Examples of pending decisions include
the  volume targets  for biomass-based  diesel and  renewal of the Blender's Tax
Credit, which both impact the US market.

Production  line  4 at  the  Porvoo  refinery  is  scheduled to be shut down for
decoking  maintenance for approximately five weeks during the first quarter. The
Singapore  NExBTL refinery is scheduled to  be taken down for maintenance either
during the fourth quarter of 2014 or the first quarter of 2015.

The  Group's investments  are expected  to total  approx. EUR 300-350 million in
2014.

Neste Oil expects the Group's full-year comparable operating profit to be at the
level  of EUR 500 million  in 2014. This is  based on the  assumption that Neste
Oil's  reference  refining  margin  averages  USD  4.5/bbl during  the year. The
reintroduction of a US Blender's Tax Credit for biofuels would impact the result
positively.  Weakening  of  the  euro  against  the  US dollar would also have a
positive impact on the result.

Dividend distribution proposal

Neste  Oil's  dividend  policy  is  to  distribute  at  least  one  third of its
comparable  net  profit  in  the  form  of  a  dividend.  The  parent  company's
distributable  equity as of 31 December  2013 amounted to EUR 1,242 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 pays a cash dividend of EUR 0.65 per
share (0.38) for 2013, totaling EUR 167 million (97 million) based on the number
of registered shares.

The  proposed dividend represents a yield  of 4.5% (at year-end 2013 share price
of EUR 14.37) and 34% of the comparable net profit in 2013.

Further information:

Matti Lievonen, President & CEO, tel. +358 10 458 11
Jyrki Mäki-Kala, CFO, tel. +358 10 458 4098
Investor Relations, tel. +358 10 458 5292
News conference and conference call

A  press conference  in Finnish  on 2013 results  will be held today, 4 February
2014, at  11:30 a.m. EET at the  company's headquarters at 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
2014 at  3 p.m. Finland / 1 p.m.  London / 8 a.m. New  York. The call-in numbers
are  as follows: Finland:  +358 (0)9 2310 1621, Europe: +44 (0)20 3427 1919, US:
+1 646 254 3388, using  access code 2191993. The conference call can be followed
at the company's web site. An instant replay of the call will be available until
11 February  2014 at +358 (0)9 2310 1650 for  Finland at +44 (0)20 3427 0598 for
Europe and +1 347 366 9565 for the US, using access code 2191993#.



Neste Oil in brief

Neste Oil Corporation is a refining and marketing company concentrating on low-
emission, high-quality traffic fuels. The company produces a comprehensive range
of major petroleum products and is the world's leading supplier of renewable
diesel. Neste Oil had net sales of EUR 17.5 billion in 2013 and employs around
5,000 people, and is listed on NASDAQ OMX Helsinki.

Neste Oil is included in the Dow Jones Sustainability World Index and the
Ethibel Pioneer Investment Register, and has featured in The Global 100 list of
the world's most sustainable corporations for many years. Forest Footprint
Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil &
gas sector. Further information: www.nesteoil.com




[HUG#1758951]

Attachments:

Neste Oil Financial Statements for 2013.pdf