Menu Investors Search Other countries Home>Investors>Market Data>Refining margins>Calculating Neste reference margin Calculating Neste reference margin Neste reference margin Pricing basis at Porvoo refinery Feed structure comparable to Neste Product yields comparable to Neste Similar cost structure vs. Neste total refining margin Key differences between Neste reference margin and Neste total refining margin Actual product yield structure and feedstocks Actual product sales distribution, pice differentials and timing Actual variable costs (production and freights) Base oils contribution Contango contribution How to calculate Neste reference margin Item Reference price REB Urals/Brent CIF differential Rotterdam (Platt's) USD/bbl - freight Primorsk/Rotterdam + freight Primorsk/Porvoo Brent dated Brent dtd (Platt's) + freight Sullom Voe/Porvoo Product prices Platt's CIF cargoes quotes USD/t Feeds Formula REB Standard share of REB 65% * price Brent dated Standard share of Brent dtd 35% * price SUM (above) = Feed cost USD/bbl Products Formula Propane Standard yield 1.5% *price / weighted average bbl-multiplier of feed (7.30)** Butane Standard yield 1.5% *price / weighted average bbl-multiplier of feed (7.30)** Gasoline 10ppm Standard yield 28% *price / weighted average bbl-multiplier of feed (7.30)** Naphtha Standard yield 1% *price / weighted average bbl-multiplier of feed (7.30)** Jet Standard yield 6% *price / weighted average bbl-multiplier of feed (7.30)** Diesel 10ppm Standard yield 46% *price / weighted average bbl-multiplier of feed (7.30)** HSFO Standard yield 10% *price / weighted average bbl-multiplier of feed (7.30)** SUM (above) = product value USD/bbl Neste reference margin = Product value - feed cost - standard refining variable costs (2.5 USD/bbl) - sales freights (1.23 USD/bbl)*** ** Weighted average bbl-multiplier of production *** Sales freight is fixed standard 15 USD/ton. An estimate is made that 60% of production is exported. Freight formula = 15* 60% / 7.30 Freights Primorsk/Rotterdam freight USD/bbl = flat rate 8.60 USD/ton * WS TD17 (month average) / 100 / 7.25 Primorsk/Porvoo freight USD/bbl = flat rate 3.85 USD/ton * WS TD17 (month average) / 100 / 7.25 Sullom Voe/Porvoo freight USD/bbl = flat rate 11.61 USD/ton * WS TD7 (month average) / 100 / 7.55 ABOUT NESTE PRODUCTS SUSTAINABILITY INVESTORS FOR MEDIA Neste in Facebook Neste in Twitter Neste in LinkedIn Neste in Instagram Neste in Youtube © Neste Cookies Terms Privacy Report concern By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookie Settings Accept All Cookies