Neste Oil unveils plans to become world's leading biofuel producer ...

Neste Oil unveils plans to become world's leading biofuel producer ...
Forbes - USA
HELSINKI (AFX) - Neste Oil said its board of directors has approved a strategy aiming at making the company the world's leading biodiesel producer with ...

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HELSINKI (AFX) - Neste Oil said its board of directors has approved a strategy aiming at making the company the world's leading biodiesel producer with millions of tons of biofuel produced annually using a variety of vegetable oils and animal fats.

The strategy revision come one day prior to the group's Capital Market Day tomorrow.

The refiner also revealed a plan to invest 'several billion' euros in growth projects over the next 10 years.

'We have both the will and the financial resources to invest in growth in the areas where we are strong,' said CEO Risto Rinne.

The company also revealed that it is planning to build several biodiesel production plants in different market areas, noting that this might include 'partners'.

'We will be even more active in research and development in the biofuels area to utilize different renewable raw materials,' Rinne added.

Parallel to the updated strategy, the refiner also revealed that the dividend payout ration will be at least one third of underlying profits.

Furthermore, the group said it is targeting a 15 pct return on average capital employed, up from the 13 pct it aimed at earlier, while leverage ration target remained unchanged.

'Good, but not ambitious,' Nordic brokerage Carnegie said in a note to clients.

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