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Neste oil downgrades profit outlook

Operating profits for 2014 are expected to be less than 400m Euros

Profits down from 450m Euros to 400m Euros.
Profits down from 450m Euros to 400m Euros.

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Plant damage at the Porvoo refinery has caused Neste Oil Oyj to cut its profit outlook for the full year, according to Reuters.
Neste said on Friday it had reduced output and shut one diesel production line at the refinery, adding that the total impact to operating profit would be about 60 million euros ($79 million) this year.

But it also said the refining margin for its Oil Products unit had been higher than expected and market prospects for the following months had improved, which would offset the blow from the plant damage by about 30 million euros.

It concluded it now expects comparable operating profit for 2014 to be below 400 million euros, having said earlier this month profit was expected to hit the lower end of its previously stated guidance range of 450 million euros plus or minus 10 percent.

"The revision was not too surprising as there was not too much room for such incidents in their guidance," said analyst Markku Jarvinen at brokerage Evli.

"The impact of the damage sounds quite big, but then again the market has gone better than anticipated," Jarvinen said, though he expected the stock to open lower.

Neste said repair work at Porvoo would take until the end of October. The damaged was announced last week.

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