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Main events during 2013

On 28 January, Neste Oil announced that Neste Shipping was to start an efficiency improvement program aimed at improving its profitability and securing the continuity of its operations. As part of this, statutory employer-employee negotiations were started and covered all of Neste Shipping's land- and sea-based personnel in Finland, around 450 people in total.

On 4 February, Neste Oil announced that it will build an isomerization unit at its Porvoo refinery. The investment, valued at approx. EUR 65 million, is intended to increase the output of high-octane gasoline and improve refining flexibility at the site.

On 26 March, Neste Oil announced that Neste Shipping had completed the statutory employer-employee negotiations initiated on 4 February. Following the negotiation process, Neste Shipping decided to terminate the ship and crew management agreements covering three vessels jointly owned with the Swedish-based Stena Group and time-chartered to Neste Shipping.

On 2 April, Neste Oil announced that the Polish competition authorities had approved the sale of Neste Oil’s station network in Poland (Neste Polska Sp. z o.o.) to Shell. The transaction covered a total of 105 unmanned stations and marked the end of Neste Oil's retail operations in Poland.

On 26 April, Neste Oil announced that it will invest a total of approx. EUR 42 million in improving the energy efficiency and operational reliability of the Porvoo refinery. As part of the investment, fired heaters at the refinery's crude distillation unit will be replaced with new-generation heaters.

On 10 September, Neste Oil announced that it expected the Group's full-year comparable operating profit for 2013 to improve significantly compared to 2012 and estimated that it would be above EUR 530 million, mainly due to good performance at Renewable Fuels, which was expected to book a full-year comparable operating profit of more than EUR 200 million for 2013.

On 11 September, Neste Oil held a Capital Markets Day in London and confirmed its long-term ROACE target of 15%.

On 19 September, Neste Oil announced that it is planning to exit the shipping business. The plan is to sell all the company’s own vessels and outsource the ship management functions currently covering them, with around 320 ship management personnel transferring to a new employer. The intention is to retain Neste Shipping's chartering functions and integrate them with Neste Oil's organization. Going forward, Neste Oil intends sourcing its marine transportation through contractual arrangements. In connection with the planned outsourcing, Neste Shipping commenced statutory employer-employee negotiations covering all land- and sea-based personnel. If the current plans are implemented as intended, no significant capital gains or losses are expected. The arrangement is expected to free up approx. EUR 60 million of capital from Neste Oil's balance sheet and improve the Group's result by approx. EUR 10 million annually during the coming years.

On 15 November, Neste Oil announced that Neste Shipping had completed the statutory employer-employee negotiations initiated on 1 October. Following a decision taken after the conclusion of the negotiations, Neste Shipping is considering the possibility of outsourcing its ship management functions, and is to start negotiations on the terms and conditions of an outsourcing contract with various potential ship management companies.

On 18 November 2013, Neste Oil announced its view on the US Environmental Protection Agency's (EPA) proposal on US renewable fuel mandates in 2014. The EPA proposed retaining the biomass-based diesel mandate at the 2013 level and reducing the total renewable fuel mandates by 8% compared to 2013. The view of Neste Oil and the advanced biofuels industry is that the industry has proved its capability to deliver growing volumes of advanced biofuels, and biomass-based diesel in particular, to the US market. As a result, Neste Oil favors higher 2014 mandates for advanced biofuels than those proposed, as this would support further research and investment in this area.

On December 27, Neste Oil published that it had received an announcement pursuant to Chapter 9, Section 5 of the Securities Markets Act regarding a change in its shareholders. BlackRock, Inc. had announced that its aggregate holding in Neste Oil Corporation had risen above the 5% threshold on December 18 and was 5.01%.