Neste Oil's Interim Report for January-June 2014

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| Source: Neste Oil Oyj
Neste Oil Corporation
Interim Report
5 August at 9 a.m. (EET)

Neste Oil's Interim Report for January-June 2014

Internal improvement actions started to bear fruit in a challenging market.

Second quarter in brief:

  * Comparable operating profit totaled EUR 85 million (Q2/2013: EUR 88 million)
  * Total refining margin was USD 8.35 /bbl (Q2/2013: USD 8.82/bbl)
  * Renewable Products' reference margin was USD 214/ton (Q2/2013: USD 346/ton)
  * Renewable Products' additional margin was USD 155/ton (Q2/2013: USD 88/ton)
  * Net cash from operations totaled EUR 219 million (Q2/2013: EUR 312 million)
January-June in brief:

  * Comparable operating profit totaled EUR 140 million (1-6/2013: EUR 223
    million)
  * Return on average capital employed (ROACE) was 10.6% over the last 12 months
    (2013: 11.8%)
  * Leverage ratio was 36.1% as of the end of June (31.12.2013: 30.0%)
  * Comparable earnings per share: EUR 0.31 (1-6/2013: EUR 0.56)
President & CEO Matti Lievonen:

"Although the challenging market situation has continued, Neste Oil has
successfully taken a number of actions to compensate for the low reference
margins in Oil Products and Renewable Products. We recorded a comparable
operating profit of EUR 85 million during the second quarter, compared to EUR
88 million during the corresponding period last year.

Oil Products' reference refining margin was at its lowest in May, as diesel
imports to Europe continued to run at a high level. The reference refining
margin averaged USD 4.2/bbl compared to USD 5.7/bbl in the second quarter of
2013. Oil Products' result was also impacted by an unscheduled 40-day
maintenance outage on production line 4 at the Porvoo refinery. Our additional
margin averaged a reasonable USD 4.1/bbl, however, and enabled Oil Products to
record a comparable operating profit of EUR 33 million compared to EUR 30
million in the second quarter of 2013.

Renewable Products' market situation has improved slightly, but decisions on US
biofuel regulation for 2014 are still pending. Sales volumes allocated to North
America were approx. one third of total in the second quarter. The profitability
of our European business was impacted by the narrow price differential between
FAME biodiesel and palm oil. Sales volumes were high, at 566,000 tons, and our
NEXBTL renewable diesel refineries continued to operate at high utilization
rates. We further increased our usage of waste and residues to 66% of total
renewable inputs. Renewable Products recorded a comparable operating profit of
EUR 31 million compared to EUR 33 million in the second quarter of 2013.

Oil Retail continued to perform well, achieving reasonable margins in all
markets. The segment generated a comparable operating profit of EUR 20 million,
slightly below the EUR 22 million booked in the second quarter of 2013.

We expect the Group's full-year comparable operating profit to be within the
earlier guided EUR 450 million +/- 10% range in 2014. As Neste Oil's reference
refining margin is currently expected to average USD 3.5/bbl rather than the
earlier estimated USD 4.0/bbl in 2014, our full-year comparable operating profit
is likely to be at the lower end of the guidance range. We will continue to
implement a series of performance improvement initiatives related to both
variable and fixed costs aimed at improving comparable operating profit by at
least EUR 50 million in 2014, which will contribute to reaching the guided
result level."

The Group's second-quarter 2014 results

Neste Oil's revenue in the second quarter totaled EUR 4,248 million (EUR 3,970
million). This increase resulted mainly from higher sales in Oil Products and
Renewable Products. The Group's comparable operating profit came in at EUR 85
million. Comparable operating profit for the corresponding period in 2013 was
EUR 88 million. Oil Products' result was negatively impacted by reference
refining margins, which were lower than in the second quarter of 2013, as well
as a 40-day unscheduled maintenance outage at the Porvoo refinery. The solid
additional margin helped secure the segment's overall result. Renewable
Products' comparable operating profit was similar to that recorded in the second
quarter of 2013. The impact of Renewable Products' lower reference margin was
largely compensated for by higher sales volumes and the higher additional margin
achieved by internal measures designed to optimize the sales and feedstock mix.
Oil Retail's solid performance continued, as it delivered virtually the same
comparable operating profit as in the corresponding period in 2013, despite the
negative currency effect. The result of the Others segment improved marginally
compared to the second quarter of 2013.

Oil Products' second-quarter comparable operating profit was EUR 33 million (30
million), Renewable Products' EUR 31 million (33 million), and Oil Retail's EUR
20 million (22 million). The comparable operating profit of the Others segment
totaled EUR 2 million (-1 million).

The Group's IFRS operating profit was EUR 69 million (112 million) and reflected
inventory gains totaling EUR 2 million (losses of 26 million) and changes in the
fair value of open oil derivatives totaling EUR -18 million (7 million). Pre-tax
profit was EUR 47 million (96 million), profit for the period EUR 38 million (90
million), and earnings per share EUR 0.15 (0.35).

The Group's January-June 2014 results

Neste Oil's revenue totaled EUR 7,902 million during the first six months of the
year compared to EUR 8,228 million during the same period last year. This
decline resulted mainly from lower sales in Oil Products in the first quarter
and the disposal of the retail business in Poland. The Group's six-month
comparable operating profit totaled EUR 140 million compared to EUR 223 million
in the first half of 2013. The main reason for the reduced comparable operating
profit was the lower reference margins in both Oil Products and Renewable
Products, which had a total negative impact of EUR 173 million. Higher sales
volumes in Renewable Products and higher additional margins saw the comparable
operating profit come in EUR 83 million below the figure booked during the first
six months of 2013.

Oil Products' six-month comparable operating profit was EUR 66 million (141
million), Renewable Products' EUR 46 million (59 million), and Oil Retail's EUR
35 million (33 million). The comparable operating profit of the Others segment
totaled EUR -9 million (-13 million).

The Group's IFRS operating profit was EUR 124 million (198 million), which was
impacted by inventory losses totaling EUR 1 million (61 million) and net capital
losses totaling EUR 2 million (gains 43 million). The pre-tax profit was EUR 85
million (161 million), profit for the period EUR 69 million (137 million), and
earnings per share EUR 0.27 (0.53).

Outlook

Developments in the global economy have been reflected in the oil, renewable
fuel, and renewable feedstock markets, and volatility in these markets is
expected to continue. Global oil demand is generally anticipated to increase by
more than 1 million bbl/d in 2014, but this growth will be more than compensated
for by new refining capacity in Asia and the Middle East. This is expected to
lead to continued high middle distillate imports into Europe from the Middle
East and the US. Gasoline margins are expected to follow normal seasonality,
which supports the reference margin during the summer driving season.

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 long-term average
feedstock price differentials are expected. Consequently, price differentials
during 2014 are likely to widen from the current narrow levels in both Europe
and North America.

Uncertainties regarding political decision-making in the US are likely to be
reflected in the renewable fuel market. Examples of pending decisions include
volume targets for biomass-based diesel and the possible reintroduction of the
Blender's Tax Credit (BTC), which both impact the US market. Reintroduction of
the BTC for 2014 and 2015 has been proposed in the US Congress, but is not
likely to make any progress until the mid-term elections in November.
Reintroduction would have a positive impact on Neste Oil's result. It is not
included in the present result guidance.

The NEXBTL refinery in Singapore is scheduled for a major turnaround lasting
approx. eight weeks during the third and fourth quarter of 2014.

Neste Oil expects the Group's full-year comparable operating profit to be within
the earlier guided EUR 450 million +/- 10% range in 2014. As Neste Oil's
reference refining margin is currently expected to average USD 3.5/bbl rather
than the earlier estimated USD 4.0/bbl in 2014, the full-year comparable
operating profit is likely to be at the lower end of the guidance range. Neste
Oil will continue to implement a series of performance improvement initiatives
related to both variable and fixed costs aimed at improving the Group's
comparable operating profit by at least EUR 50 million in 2014, which will
contribute to reaching the guided result level.

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 the second-quarter results will be held today,
5 August 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 5 August 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 6937 9543, Europe: +44 (0)20
3427 1908, US: +1 212 444 0895, using access code 8887105. The conference call
can be followed at the company's web site. An instant replay of the call will be
available until 12 August 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 8887105#.

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 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




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