“Market Cap $5.3 B As of May 2014
At a Glance
- Industry: Oil & Gas Operations
- Founded: 1948
- Country: Finland
- CEO: Matti Lievonen
- Website: www.nesteoil.com
- Employees: 5,097
- Sales: $23.18 B
- Headquarters: Espoo
#1034 Global 2000
- #402 in Sales
- #867 in Profit
- #1805 in Assets
- #1870 in Market value
Neste Oil Oyj is a refining and marketing company, which produces petroleum products and supplies renewable diesel. It operates its business through the four business segments: Oil Products, Renewable Fuels, Oil Retail and Others. The Oil Products segment markets and sells gasoline, diesel fuel, light and heavy fuel oil, aviation fuel, base oils and liquefied petroleum gas to domestic and international wholesale markets. The Renewable Fuels segment markets and sells NExBTL renewable diesel based on Neste Oil’s proprietary technology to domestic and international wholesale markets. The Oil Retail segment markets and sells petroleum products and associated services directly to end-users, of which the most important are private motorists, industry, transport companies, farmers, and heating oil customers. The Others segment consists of its administration, shared service functions, research & technology, Neste Jacobs and Nynas AB. The company also operates shipping business. Neste Oil was founded on January 9, 1948 and is headquartered in Espoo, Finland.“
“Neste Oil History
Neste Oil is a young company with a long history and six decades of oil expertise behind it. Today’s Neste Oil successfully combines this solid industry experience with the business and environmental demands of the 21st century.
Neste Oil’s predecessor, Neste, was founded 9th January 1948 to secure Finland’s oil supply, and began operations with a tanker bearing the same name. Products were stored at the Tupavuori facility at Naantali.
The question of building an oil refinery in Finland had first emerged around the mid-1940s, and the formal decision to build one, at Naantali, was taken by the Finnish Parliament in December 1954 after many years of discussion. The new refinery was commissioned in July 1957, and in 1962 its capacity was increased from 800,000 t/a to 2.5 million t/a. The extended refinery soon proved unable to meet the growing demand for petroleum products in Finland, however, and it was decided to build a second one. This was commissioned at Porvoo in 1965. In the years that followed, Neste’s refining capacity, particularly at Porvoo, steadily grew, as did the range of the company’s business interests. Natural gas, exploration and production, and chemicals joined its core refining and shipping activities. Neste also established itself as a retail service station brand.
Neste became a listed company on the Helsinki Stock Exchange in 1995, and in 1997 the Council of State decided to merge the company with Imatran Voima to form Fortum Corporation, which was listed in December 1998. The merged oil and electricity company continued until 2005, when the oil business was spun off as a separate company and Neste Oil took its place on the Helsinki Stock Exchange.
Today’s Neste Oil is a refining and marketing company focused on premium-quality traffic fuels, and with a strategic target to be the world’s leading supplier of lower-emission traffic fuels. Some 5,000 people work for the company, which operates in 14 countries.
- Neste Oil sold its first batch of NEXBTL renewable diesel to the US market.
- Neste Oil launched a new service that offers the company’s fleet customers the option of card-free fueling.
- Neste Oil expanded the range of renewable raw materials by beginning to produce NEXBTL renewable diesel from waste fat sourced from the fish processing industry.
- In spring 2012, a acheduled maintenance turnaround was conducted at the Naantali refinery. Around 2,000 pieces of equipment were overhauled and various process furnaces and other equipment replaced during the six-week turnaround.
- Neste Oil launched a new premium-quality diesel fuel, Neste Pro Diesel. Neste Pro Diesel is the first-ever diesel fuel to comply with the toughest diesel specification drawn up as part of the Worldwide Fuel Charter (WWFC) by automotive.
- Neste Oil inaugurated Europe’s first pilot plant for producing microbial oil from waste and residues in Porvoo. Microbial oil produced from industrial and agricultural waste is considered to be one of the most promising raw materials for renewable NEXBTL diesel.
- Neste Oil expanded its product range by launching commercial production and sales of renewable naphtha for corporate customers. NEXBTL naphtha is suitable to be used in the production of bioplastics. NEXBTL naphtha is produced as part of the NEXBTL renewable diesel refining process at Neste Oil’s sites in Finland, the Netherlands, and Singapore.
- Neste Oil signed an agreement to sell its retail station network in Poland to Shell.
- The company’s fourth renewable diesel plant, in Rotterdam in the Netherlands, was commissioned in September 2011.
- The company started up a new premium-quality base oil production plant in Bahrain, together with Bahrain Petroleum Company (Bapco) and nogaholding.
- A partnership is being developed with Abu Dhabi International Oil Company (ADNOC) to increase total base oil capacity.
- Neste Oil divested various non-core businesses: The gas business in Estonia was sold to Alexela, the polyalphaolefins (PAO) plant in Beringen, Belgium to Chevron Phillips Chemical, and Neste Oil’s 50% stake in an iso-octane plant in Edmonton, Canada to Canadian-based Keyera Corporation.
- Neste Oil succeeded in extending its renewable raw material base from five inputs to eight.
- Neste Oil decided to build a pilot plant to produce waste-based microbial oil at its Porvoo Technology centre at the end of 2011.
- In the algae oil area, a major partnership was launched with the Marine Research Centre of the Finnish Environment Institute (SYKE), and Neste Oil decided to take part in international algae research projects in the Netherlands and Australia.
- Drawing on its R&D expertise, Neste Oil succeeded in producing its first batch of NEXBTL renewable aviation fuel in summer 2011.
- Neste Oil completed the certification of all its renewable diesel plants under the ISCC (The International Sustainability & Carbon Certification) system.
- The largest-ever maintenance turnaround was successfully completed at the Porvoo refinery.
- Capacity utilization was improved at the Porvoo refinery after the turnaround was completed.
- Production costs were at a lower level than previously at both the Porvoo and Naantali refineries.
- The new NEXBTL plant in Singapore was started up successfully.
- Construction work on a NEXBTL plant in Rotterdam and a VHVI plant in Bahrain progressed on-schedule and on-budget.
- Trial use of a 100% biofuel was launched. Known as Neste Green 100, this renewable NEXBTL diesel was successfully tested in a small fleet of cars driven by company personnel and outside participants.
- Neste Oil took a number of measures in preparation for the introduction of E10 fuel in Finland. 95 E10 gasoline, containing a maximum of 10% ethanol, was launched at the beginning of 2011.
- Neste Oil submitted a voluntary verification system to the European Commission in fall 2010 to demonstrate that NEXBTL renewable diesel is produced in accordance with sustainable principles.
- Neste Oil’s and Stora Enso’s joint venture, NSE Biofuels Oy, began an environmental impact assessment in Porvoo and Imatra, Finland.
- Neste Oil agreed a new biofuel initiative with Lufthansa.
- Neste Oil applied for a number of patents for technology capable of producing microbial oil from waste with help of yeasts and molds for use in the NEXBTL renewable diesel process.
- Oil Products and Renewable Fuels business areas were merged to create a single business – Oil Products and Renewables – to generate increased operational efficiency and synergy.
- Personnel in Finland reduced by 351
- Second NEXBTL renewable diesel plant commissioned in Finland
- Pilot biofuel plant owned jointly by Neste Oil and Stora Enso inaugurated in Varkaus
- Neste Oil commits itself to using solely certified palm oil by the end of 2015
- Foundation stone of a world-scale NEXBTL plant laid in Rotterdam
- Neste Jacobs signs a framework agreement covering engineering services for a major chemicals production center in Abu Dhabi
- Distribution of Neste Green diesel extended to Eastern Finland
- Foundation stone of a world-scale NEXBTL plant laid in Singapore
- Neste Oil’s structure reorganized around three business areas
- Matti Lievonen appointed President & CEO, succeeding Risto Rinne on the latter’s retirement
- Agreement signed with Bapco to build a joint
base oil plant in Bahrain
- Go-ahead given for a NEXBTL renewable diesel plant in Rotterdam
- Decision taken to build a new isomerization unit
at Porvoo to produce premium-quality gasoline
- Acquisition of Rintekno reinforces Neste Oil’s engineering capabilities
- Go-ahead given for a NEXBTL renewable diesel plant in Singapore
- Revamp of Neste Oil’s service station network launched
- Major new diesel line commissioned at Porvoo, where the Technology Center celebrated its 40th anniversary
- Cooperation started with Stora Enso to develop new biofuel production technology
- Aviation business in Latvia sold to Statoil
- Decision taken to build a second NEXBTL renewable diesel plant at Porvoo
- Service station sites sold for €118 million
- Neste Oil sets its strategic sights on becoming the world’s leading producer of renewable diesel
- 98-octane biogasoline launched in Finland
- 10% stake in a Saudi Arabian petrochemical company sold
- Stake in Russian oil production company, Severtek, sold to Lukoil
- Holding in Pikoil to Kesko Food
- Major maintenance turnaround at the Porvoo refinery
- Neste Oil listed on the Helsinki Stock Exchange
- Fortum decides to build a renewable diesel plant at Porvoo
- Fortum Oil and Gas split into Fortum Oil (later to become Neste Oil) and Fortum Heat and Gas
- Foundation stone of a new production line laid at the Porvoo refinery
- US-based Jacobs Engineering acquires a stake in Neste Engineering
- Fortum initiates plans to spin off its oil business and list it on the Helsinki Stock Exchange
- NExOCTANE technology awarded Finnish Engineering Award
- Fortum and Kesko establish a joint venture
- New-generation reformulated gasoline developed at Porvoo and launched on the Finnish market
- Bitumen business sold to Nynäs Petroleum
- Sulfur content of gasoline further reduced
- Norwegian E&P business sold to Eni
- Two product tankers ordered from China
- Finnish State decides to divest a proportion of its holding in Fortum
- Oil production assets in Oman sold
- New low-emission gasoline unit commissioned at the Naantali refinery
- 7% stake acquired in the Mikkel gas and condensate field in Norway
- LPG business expanded in Latvia
- Fortum’s organization restructured around 12 business units
- 30% stake in an oil and gas exploration license in the northern North Sea awarded to Fortum Petroleum
- Gas production starts in the Åsgard field in Norway in October
- Petrochemicals business (50% stake in Borealis) divested in 1999
- Majority holding in Gasum sold in 1999
- Neste Chemicals divested
- Oil production begins in the Åsgard field in Norway in 1999
- Fortum listed on the Helsinki Stock Exchange in 1998
- Merger of Imatran Voima and Neste begins with the founding of a new holding company, IVO-Neste, on 28 February 1998
- Production begins in the Heidrun oil field in Norway in 1995
- Neste listed on the Helsinki Stock Exchange on 27 November 1995
- Neste and Statoil merge their petrochemicals and polyolefins businesses and create Borealis in 1994
- Holdings in gas fields in the British sector of the North Sea sold in 1994
- New natural gas company, Gasum, established in 1994; a joint venture between Neste (75%) and Gazprom (25%)
- Three plants producing MTBE ¬– an oxygenate designed to promote cleaner gasoline combustion – commissioned in Portugal, Canada, and Malaysia in 1992
- Service station business launched in the Baltic countries
- E&P activities extended to the North Sea and the Middle East
- Coal business sold to Aspo
- Futura brand launched
- Oil trading business started in 1982
- Aviation business started under the Neste Air brand
- Jaakko Ihamuotila appointed CEO of Neste
- Major expansion program, involving the building of new plants, the extension of existing ones, and acquisitions
- Major petrochemical and plastics plants built at Porvoo
- E&P activities started in the North Sea
- Expansion of the Porvoo refinery completed in 1976
- Oil refining capacity rises to 14-15 million t/a
- Sulfur recovery and chemical and biological wastewater treatment units commissioned at the Porvoo and Naantali refineries
- Natural gas imports into Finland begin in 1974
- Neste becomes Finland’s largest ship-owner after it acquires three 250,000 supertankers, the Jurmo, the Jaarli, and the Jatuli
- New head office completed at Keilaniemi in Espoo
- Uolevi Raade retires as CEO in 1979
- Neste becomes Finland’s largest company, with a major role in Finland’s bilateral trade with the Soviet Union
- Petrochemicals production starts
- Decision taken to double capacity at the Naantali refinery. On line in 1962.
- Neste, Kesko, OTK, and SOK establish an LPG distribution company, Tehokaasu, in 1963
- Porvoo refinery commissioned in 1965. Capacity subsequently expanded in two stages.
- Research laboratory established at Naantali and subsequently transferred to Porvoo
- Neste’s first refinery comes on stream at Naantali in 1957, and the first cargo of crude arrives there in June
- Uolevi Raade appointed CEO in 1955
- Neste acquires its first tanker and begins importing oil
- Eino Erho appointed CEO
- Neste Oy founded in 1948 to secure Finland’s oil supply”
*Information from Forbes.com and Nesteoil.com
**Video published on YouTube by “Neste Oil Suomi“