Energy giant Neste sees a ‘K-shaped’ recovery for its business, CEO says

Advertisement

BEGIN ARTICLE PREVIEW:

SINGAPORE — Finnish energy company Neste is seeing a so-called “K-shape recovery” from the coronavirus pandemic, with different segments of its business going in opposite trajectories, CEO Peter Vanacker said on Tuesday.”If I look at the recovery right now, people refer to (it) as V-shape, W-shape, L-shape, I’ve heard yesterday on the summit, K-shape,” he told CNBC’s Capital Connection as an attendee of the Singapore Summit, which is being held virtually this year. That’s what Vanacker said he’s seeing in his business right now.”The recovery in renewables, that was extremely fast,” he said. “But then on the other hand side, everything that has to do with, for example, oil and oil refineries, is actually not recovering.”Neste is the world’s leading producer of renewable diesel. It used to be a classic oil-refining company but later developed sustainable fuel.Vanacker said there’s a “big difference” between these two sides of the business at this point. There was a “quick recovery” for what is sustainable and renewable, while oil-based products are still “suffering” and not recovering.He said that could continue into 2021 and 2022. The circumstances are “extremely challenging” for oil refineries that are not selling as much as they can produce, …

END ARTICLE PREVIEW

READ MORE FROM SOURCE ARTICLE