US Blender's Tax Credit decision to support Neste’s 2019 result
Neste Corporation, Inside Information, 21 December 2019 at 1.30 p.m. (EET)
On 20 December 2019, the US Blender's Tax Credit (BTC) was approved retroactively for the years 2018 and 2019, as well as for the years 2020–2022. For said years, qualified biofuel blenders in the US are eligible for a Blender's Tax Credit of $1.00 per gallon of biodiesel or renewable diesel used in the blending process.
The retroactive reinstatement of the BTC for 2018 and 2019 will have a positive impact on Neste's comparable operating profit in the last quarter of 2019. The retroactive reinstatement of the BTC is expected to improve Neste's comparable operating profit by approximately EUR 140 million for 2018. The corresponding improvement for 2019 is still to be confirmed based on the actual 2019 blending volumes, but it is estimated to be in the magnitude of EUR 200 million. Cash flow relating to the BTC for 2018 and 2019 is expected to be mostly received during the first half of 2020.
Neste is an active player in the US renewable fuel market. Many public and private fleets in the US have chosen to use Neste MY Renewable Diesel™ to reduce their carbon footprint and lower their tailpipe emissions.
Senior Vice President, Sustainability, Public Affairs and Communications
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Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2018, Neste's revenue stood at EUR 14.9 billion. In 2019, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com