Neste buoyed by high European refining margins

HELSINKI (Reuters) -- State-controlled Finnish refiner Neste reported better than expected fourth-quarter profits and dividend on Thursday thanks to high European refining margins and favorable foreign exchange rates.

Neste, which has two conventional refineries in Finland and renewable diesel refineries in Singapore and Rotterdam, said its core operating profit in the quarter rose 39% from a year ago to 352 million euros ($390 million), well above of the average analyst forecast of 267 million in a Reuters poll.

Neste proposed an annual dividend of 1 euro/share, also beating the market consensus of 0.85 euro.

The company did not put a figure on its profit outlook for this year but it said it expected low crude oil prices to continue to support product demand.

"Neste expects oil products' reference refining margin to continue to be supported by relatively good gasoline margins ... renewable products' reference margin is expected to remain at approximately the year 2015 average level," CEO Matti Lievonen said.

He said the utilization rates of Neste's plants were expected to be high, except for a scheduled turnaround at the Rotterdam refinery in April-May.

($1 = 0.9026 euros)