First quarter in brief:

— Diesel margins were down by almost 40% year-on-year

— Demand for transportation fuels was lower on the company’s home markets

— Total refining margin of $9.44 /bbl (1-3/08: 11.91)

— Comparable operating profit halved to EUR56 million (1-3/08: 119 million)

— IFRS operating profit of EUR95 million (1-3/08: 204 million)

— Cash flow from operations improved to EUR17 million (1-3/08: -113 million)

— Major organizational restructuring initiated to improve efficiency and customer orientation and put focus on the corporate strategy

Matti Lievonen, president and chief executive officer: “The economic recession is now clearly being reflected in lower demand for petroleum products. Oil refiners feel the impact of this clearly because the market downturn is amplified by new capacity due to come on stream this year and next year. We have seen the largest drop in demand in the diesel market, which is very much tied to industrial activity and logistics. This was especially true in March, which was a difficult month, and the market situation has not improved during April.”

“Our major restructuring is, in part, a response to these challenges, as it is designed to give us a more efficient and customer-oriented structure that will enable us to implement our growth strategy more effectively. We remain very much committed to seeing through our ongoing projects to increase our NExBTL renewable diesel capacity and grow the business.”

“I am happy to announce that we have recently received our first batch of RSPO-certified palm oil. This is further evidence of Neste Oil’s strong commitment to sustainable products, processes and procedures.”

The group’s comparable operating profit was EUR56 million. The drop compared to the EUR119 million posted in the first quarter of 2008 was largely a consequence of a weaker total refining margin and unfavorable US dollar hedging.

Oil Products’ first-quarter comparable operating profit was EUR64 million (113 million), Renewable Fuels’ EUR-7 million (2 million), Oil Retail’s EUR12 million (9 million), and Others’ EUR-11 million (-8 million). Others include profits from associated companies and joint ventures (Nynas AB), which totaled EUR-7 million (1 million).

Operating profit under IFRS was EUR95 million (204 million) in the first quarter. In addition to a lower comparable operating profit, the decline compared to the figure for 2008 resulted from changes in the fair value of open oil derivatives.

Given the capital-intensive nature of its business, Neste Oil uses return on average capital employed after tax (ROACE) as its primary financial target, based on comparable results. At the end of March, the rolling twelve-month ROACE was 11.6% (March 31, 2008: 14.1%).

Capital expenditure and financing

Investments totaled EUR174 million in the first quarter (82 million). Oil Products’ capital spending was EUR43 million (33 million), Renewable Fuels’ EUR123 million (27 million), and Oil Retail’s EUR4 million (8 million). Depreciation was EUR55 million (59 million).

The group’s interest-bearing net debt was EUR1,217 million at the end of March 2009 (December 31, 2008: EUR1,004). Net financial expenses between January and March were EUR14 million (13 million). The group will capitalize interest expenses related to major investment projects during 2009. The average interest rate of borrowings at the end of March 2009 was 2.8% and the average maturity 3.8 years.

Net cash from operating activities between January and March 20, 2009 was EUR17 million (-113 million). Around EUR150 million was tied in contango storages of crude and products at the end of March. The equity-to-assets ratio was 44.9% at the end of the period (December 31, 2008: 46.3%), the leverage ratio 35.3% (December 31, 2008: 31.5%), and the gearing ratio 54.6% (March 31, 2008: 46.1%).

Cash and cash equivalents and committed, unutilized credit facilities amounted to EUR1,485 million at the end of March (December 31, 2008 : 1,536 million). The company sees no major refinancing needs until 2012.

Short-term financing needs will continue to be met by revolving credit and overdraft facilities. There are no financial covenants in existing loan agreements.

In accordance with its hedging policy, Neste Oil has hedged the majority of its net foreign currency exposure for the next 12 months, mainly using forward contracts and currency options. The most important hedged currency is the US dollar.

Market overview

After collapsing in the second half of 2008, crude oil prices stabilized at around $45-50 /bbl. Price differentials between heavier and lighter crude have been quite narrow, reflecting developments such as the cuts in production of heavier grades instituted by OPEC.

Refining margins weakened on the back of the worsening global economy and falling product demand.

Gasoline margins recovered from the lows seen in late 2008, due mainly to reduced production, as well as relatively stable demand thanks to lower consumer prices.

Demand for middle distillates was hit by the economic recession, and margins for diesel and other middle distillates fell throughout first quarter. High inventories in the US and Europe also contributed to low margins.

European margins on high-sulfur fuel oil were supported by reduced supply and steady demand in Asia.

Demand for gasoline and diesel on the Finnish retail market fell by 3% and 6% respectively during the first two months of the year. The drop in diesel demand from trucking companies has been even steeper. Demand has fallen even more in the Baltic countries.

Biofuel prices were lower in the first quarter compared to the same quarter in 2008 and the price differentials between biofuel feedstocks have narrowed. The implementation of the EU’s Renewable Energy directive in member countries is expected to start in May 2009.

Oil freight rates have almost halved in both the crude and product market compared to the first quarter of 2008.

Production and sales

Neste Oil refined a total of 3.8 million tons of crude oil and feedstocks in the first quarter, of which 3.1 million tons at Porvoo and 0.7 million tons at Naantali. The Porvoo refinery operated at a crude distillation capacity utilization rate of 90% (94%) during the quarter; while Naantali operated at 86% (99%) utilization, as a result of planned maintenance outages.

The proportion of Russian Export Blend in Neste Oil’s total refinery input was 63% (64%) in the first quarter.

The proportion of diesel in Neste Oil’s sales structure remained at close to 40%. Some diesel volumes were stored for sale later. The majority of gasoline stored in late 2008 was sold during the first quarter, mostly to North America.

At the end of March, Neste Oil’s contango storage consisted of 550,000 tons (over four million barrels) of crude and products.

Segment Reviews:

As of April 1, 2009, Neste Oil’s businesses are grouped into four reporting segments: oil products, renewable fuels, oil retail, and others. Quarterly figures for 2008 according to these segments were published on April 23, 2009.

Oil Products’ first-quarter comparable operating profit was EUR64 million (113 million). This decrease resulted from a lower total refining margin and unfavorable US dollar hedging. Neste Oil’s total refining margin was $9.44 /bbl during the quarter, compared to $11.91 /bbl in the corresponding quarter of 2008. All the main drivers affecting the total refining margin (diesel margin, price differential between Urals and Brent crude, and the IEA Brent cracking reference margin) were weaker year-on-year.