Neste, the world’s biggest producer of renewable jet fuel, said its net profit for the first half swung from a €76mn loss a year earlier to €1.3bn. Its sales margin on renewable products more than tripled year on year to a record $1,223 a tonne in the second quarter, up from $361 a tonne a year earlier and $164 ahead of analyst forecasts.

Sustainable aviation fuel (SAF) and renewable diesel prices in Europe rose as much as 31 per cent and 24 per cent, respectively, from pre‑war levels, according to Argus Media. Heikki Malinen, Neste’s chief executive, said the conflict in the Middle East “dominated global oil and product markets” in the second quarter, creating “an exceptional market environment”. More recently, margins had dropped as feedstock prices caught up with rising product prices.

Malinen was “on the cautious side” about the outlook, noting volatile oil product prices make future margins hard to predict. He added that repeated supply shocks keep energy security high on the policy agenda, strengthening the longer‑term case for renewable fuels. The International Energy Agency expects SAF consumption to expand ninefold to 9bn litres by 2030, still only 2 per cent of total aviation fuel demand.

Neste also benefited from US policy: the Trump administration finalised new renewable fuel rules in March, sharply raising biofuel mandates for 2026‑27. Jess Dell, head of US biofuel pricing at Argus, said the bullish sentiment is unlikely to abate because “there is this mandate … for these billions more gallons of biodiesel and renewable diesel to come to market.”