View source for Refiner Neste Warns Of Weaker Biofuel Outlook Shares Drop

<br>Company makes third cut to renewables organization [https://www.pinterest.com.au/missionnewenergy/ outlook] this year<br><br><br>[https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4 Reduces] both margin and volume outlook<br><br><br>Weaker diesel market strikes [https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price biofuel] prices<br><br><br>(Adds expert, background, information in [https://www.pinterest.com.au/missionnewenergy/ paragraphs] 2-3, 9-11)<br><br><br>By Elviira Luoma and Essi Lehto<br><br><br>HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [https://stocktwits.com/symbol/MNEL biofuel] business for the third time this year due to falling prices and also lowered its anticipated sales volumes, sending out the company's share rate down 10%.<br><br><br>[https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608 Neste stated] a drop in the rate of routine diesel had affected what it can charge for the [https://stocktwits.com/symbol/MNEL biofuel] it makes in Europe and Singapore, while [https://forest500.org/rankings/companies/mission-newenergy-limited input expenses] for waste and residue feedstock stayed high.<br><br><br>A rush by U.S. fuel makers to recalibrate their plants to produce eco-friendly diesel has actually created a supply glut of low-emissions biofuels, hammering earnings margins for refiners and threatening to restrain the nascent market.<br><br><br>Neste in a declaration slashed the expected average equivalent sales margin of its [https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd renewables] system to between $360-$480 per tonne of [https://www.zoominfo.com/c/mission-newenergy/346542889 biofuel], below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br><br><br>The [https://pitchbook.com/profiles/company/51278-86 business] now also [https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html expects renewables-based] sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually [https://www.bloomberg.com/profile/company/MNELF:US forecasted] given that the start of the year, it added.<br><br><br>A part of the [https://www.energy-xprt.com/companies/mission-newenergy-limited-36048 volume cut] originated from the [https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html production] of sustainable air travel fuel, of which it is now  to offer in between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen previously, [https://pitchbook.com/profiles/company/51278-86 Neste stated].<br><br><br>"Renewable items' prices have actually been adversely affected by a considerable decline in (the) diesel cost throughout the 3rd quarter," Neste said in a statement.<br><br><br>"At the same time, waste and residue feedstock costs have actually not decreased and eco-friendly product market value premiums have stayed weak," the [https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html company included].<br><br><br>Industry executives and experts have actually stated rapidly broadening Chinese [https://www.investing.com/equities/mission-newenergy-ltd-company-profile biodiesel] manufacturers are looking for new outlets in Asia for their exports, while Shell and BP have announced they are pausing expansion plans in Europe.<br><br><br>While the cut in Neste's assistance on sales volumes of sustainable air travel fuel came as a surprise, the negative effect on [https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd biodiesel margins] from a lower diesel price was to be expected, Inderes expert Petri Gostowski stated.<br><br><br>Neste's share rate had actually reversed some losses by 1037 GMT however stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, [https://forest500.org/rankings/companies/mission-newenergy-limited Essi Lehto] and Boleslaw Lasocki; Editing by [https://www.crunchbase.com/organization/mission-newenergy Terje Solsvik] and Jan Harvey)<br>