1 changed files with 16 additions and 0 deletions
@ -0,0 +1,16 @@ |
|||
<br>Company makes 3rd cut to renewables company outlook this year<br> |
|||
<br>Reduces both margin and volume outlook<br> |
|||
<br>Weaker diesel market hits [biofuel](https://www.pinterest.com.au/missionnewenergy/) prices<br> |
|||
<br>(Adds expert, background, information in paragraphs 2-3, 9-11)<br> |
|||
<br>By Elviira Luoma and Essi Lehto<br> |
|||
<br>HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) company for the third time this year due to falling costs and likewise reduced its anticipated sales volumes, sending out the company's share price down 10%.<br> |
|||
<br>Neste said a drop in the cost of routine diesel had actually affected what it can charge for the [biofuel](https://www.crunchbase.com/organization/mission-newenergy) it makes in Europe and Singapore, while input costs for waste and residue feedstock stayed high.<br> |
|||
<br>A rush by U.S. fuel makers to recalibrate their plants to diesel has developed a supply glut of low-emissions biofuels, hammering revenue [margins](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) for refiners and threatening to hamper the nascent market.<br> |
|||
<br>Neste in a statement slashed the expected [average equivalent](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) sales margin of its [renewables](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) unit to between $360-$480 per tonne of [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889), down from $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
|||
<br>The [company](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) now also expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had [anticipated](https://www.google.com/search?kgmid=/m/0cqd_rb) given that the start of the year, it [included](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd).<br> |
|||
<br>A part of the volume cut came from the production of [sustainable air](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) travel fuel, of which it is now [expected](https://www.google.com/search?kgmid=/m/0cqd_rb) to sell in between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen previously, Neste stated.<br> |
|||
<br>"Renewable products' sales prices have actually been negatively impacted by a significant reduction in (the) diesel price throughout the third quarter," Neste said in a statement.<br> |
|||
<br>"At the exact same time, waste and residue feedstock prices have actually not decreased and renewable product market value premiums have actually stayed weak," the company included.<br> |
|||
<br>Industry [executives](https://www.bloomberg.com/profile/company/MNELF:US) and analysts have actually said rapidly expanding [Chinese](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) [producers](https://forest500.org/rankings/companies/mission-newenergy-limited) are looking for [brand-new outlets](https://www.businessnews.com.au/Company/Mission-NewEnergy) in Asia for their exports, while Shell and BP have actually revealed they are stopping briefly growth strategies in Europe.<br> |
|||
<br>While the cut in Neste's guidance on sales volumes of sustainable air travel fuel came as a surprise, the unfavorable impact on [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) margins from a [lower diesel](https://pitchbook.com/profiles/company/51278-86) price was to be anticipated, [Inderes](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) expert Petri Gostowski said.<br> |
|||
<br>Neste's share price had reversed some losses by 1037 GMT but remained down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) Luoma, Essi Lehto and Boleslaw Lasocki |
|||
Loading…
Reference in new issue