HELSINKI, Oct 22 (Reuters) - Finnish biofuel producer and oil refiner Neste reported a smaller-than-expected fall in its third-quarter profit on Thursday, thanks to its resilient renewables business and despite a very weak refining market.

Neste, which has invested heavily in renewables, said its July-September comparable operating profit fell 14% to 373 million euros ($442 million), beating the 343.5 million expected on average by analysts, Refinitiv Eikon data showed.

Quarterly revenue dropped 27% year-on-year to 2.88 billion euros, missing analysts' average expectation of 2.97 billion.

Neste said its renewables business had improved its sales margin and volume from the same quarter year ago while its oil products segment delivered a slightly negative comparable operating profit.

"Oil Products continued to suffer from a very weak refining market caused by the global COVID-19 related demand destruction and over-supply," Neste Chief Executive Peter Vanacker said in a statement.

Neste's board also decided to pay a second dividend instalment of 0.56 euros per share, consisting of an ordinary dividend of 0.46 euros per share and an extraordinary dividend of 0.10 euros per share.

($1 = 0.8440 euros) (Reporting by Anne Kauranen; Editing by Mark Potter and Carmel Crimmins)