Renewable fuel producer Neste Friday reported a year-over-year drop in Q2 renewable fuel output, as a decline in sustainable aviation fuel production more than offset a rise in renewable diesel.
Renewable fuel production totaled 1.1 million tons in Q2, down from about 1.2 mmt in the same quarter of 2025, largely due to a delay in equipment replacement in its Singapore facility, the company said in its Q2 results.
Of the total output, renewable diesel contributed 977,000 tons and SAF added 126,000 tons, according to the report. These compare with the previous year's 844,000 tons of renewable diesel and 290,000 tons of SAF.
Neste's renewable fuel facilities, with a nameplate capacity of 4.5 million tons per annum, recorded a 75% utilization rate in Q2, lower than the 81% posted a year earlier.
In terms of sales, total renewable fuel volume dropped year over year to about 1.0 mmt from 1.1 mmt. Sales of renewable diesel grew to 854,000 tons from 836,000 tons, but sales of SAF declined to 145,000 tons from 233,000 tons.
Despite lower production and sales, the renewable products segment generated $2.90 billion euros ($3.30 billion) in revenue in Q2, up from 1.92 billion euros a year earlier. The company attributed the increase to stronger premiums in Europe and the US and a surge in middle distillate prices brought about by the US-Iran war.
"The conflict in the Middle East dominated global oil and product markets through most of the period, creating an exceptional market environment for Neste. At the same time, we benefited from favorable regulatory decisions that will continue to support demand for renewables for years to come," the company said.
Meanwhile, production from Neste's oil products segment decreased slightly to 2.72 mmt in Q2, relative to 2.74 mmt a year earlier, according to the report. Refinery utilization rate correspondingly fell to 90% from 92%.
Sales volume dropped year over year to 2.5 mmt from 3.0 mmt, driven by lower sales in Europe.
Strong global energy prices resulted in higher revenue for Neste's oil products business despite lower output and sales, with results showing a rise to 2.64 billion euros in Q2 from 2.20 billion euros a year ago.
Neste's marketing and services segment also saw improved revenue year over year, with figures rising to 1.46 billion euros from 1.04 billion euros, as gasoline, diesel and heating oil sales grew.