Neste Oil has updated the method used to calculate its comparable operating profit to provide a better reflection of operational performance in its Oil Products business, by switching from a monthly average pricing method to a daily based pricing method when adjusting calculated inventory gains and losses.
The update has been driven by the increasing volatility of the oil market in recent years, which has made the intra month timing of feedstock purchases more important. The update is also in line with development of the company's internal processes.
The comparable operating profit calculation used by Renewable Fuels is already based on this methodology. The definition and calculation formula of comparable operating profit will remain unchanged from those presented in the Financial Statements of Neste Oil. This update does not have any impact on reported IFRS results.