Finland-based Neste Oil revised its projected operating profit down Tuesday as it takes a $78 million hit in lost output and repair costs from a damaged hydrogen production unit at its Porvoo refinery.
The unit, one of two at the site, was damaged on August 18 and is expected to be repaired by the end of October.
Details about the damage have not been released.
The damage has reduced output at the refinery and required Neste to shutdown the diesel production unit Production Line 4.
Neste is projecting a $65 million loss in output and $13 million in repair costs.
The losses will impact the company’s comparable operating profit for 2014.
Neste said that higher than expected refining margins and improved market prospects could reduce the impact of the damage by about $39 million.
Neste now expects its comparable operating profit for 2014 to come in at under $524 million.
The company previously forecast its 2014 comparable operating profit at $590 million plus or minus 10 percent.
In early August, Neste said it expected operating profit to be closer to the lower end of the guidance range.
The refinery has a capacity of approximately 200,000 barrels per day and produces about 12 million tons of petroleum products a year.
It is 18 miles east of Helsinki.
Neste is a refining and marketing company with six plants throughout Europe, Asia and the Middle East.