STOCKS NEWS EUROPE-Neste up on U.S. biofuel tax credit hopes

HELSINKI, April 2 (Reuters) - Shares in Neste Oil (Other OTC: NTOIF - news) rise more than 6 percent after media report says U.S. senators have proposed reinstating a renewable fuel tax credit that would boost the Finnish company's profit.

Energy news site FuelFix reports that two senators who represent both main political parties in the U.S. have proposed that a $1-a-gallon biodiesel subsidy which expired last year would be renewed through 2015.

"The blender's tax credit could add 100 million euros to Neste's annual operating profit," says an analyst who declined to be named. Neste has forecast 2014 operating profit of around 500 million euros, adding that a reintroduction of the tax credit would boost the result.

The state-controlled Neste, which makes renewable diesel from sources such as palm oil and animal fats, in February reported a stronger-than-expected rise in profits.