commit 48002cfd1500bfed3621b008bb9755a847f4efb0 Author: scotdutton628 Date: Sun Jan 12 13:17:21 2025 +0800 Add 'Refiner Neste Warns of Weaker Biofuel Outlook, Shares Drop' diff --git a/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md new file mode 100644 index 0000000..912f081 --- /dev/null +++ b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md @@ -0,0 +1,16 @@ +
Company makes 3rd cut to renewables business outlook this year
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Reduces both margin and volume outlook
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Weaker diesel market hits [biofuel](https://www.pinterest.com.au/missionnewenergy/) rates
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(Adds expert, background, information in paragraphs 2-3, 9-11)
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By [Elviira Luoma](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and Essi Lehto
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HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://stocktwits.com/symbol/MNEL) service for the 3rd time this year due to falling costs and also lowered its anticipated sales volumes, sending out the [company's share](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) price down 10%.
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Neste said a drop in the price of regular diesel had impacted what it can charge for the [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) it makes in Europe and Singapore, while [input expenses](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) for waste and residue feedstock [remained](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) high.
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A rush by U.S. fuel makers to recalibrate their plants to produce renewable diesel has actually developed a supply excess of [low-emissions](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) biofuels, hammering revenue margins for refiners and [threatening](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) to impede the nascent industry.
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Neste in a declaration slashed the expected [average](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) similar sales margin of its renewables unit to between $360-$480 per tonne of [biofuel](https://stocktwits.com/symbol/MNEL), below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.
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The [company](https://www.zoominfo.com/c/mission-newenergy/346542889) now likewise expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had forecasted because the start of the year, it added.
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A part of the volume cut originated from the production of sustainable aviation fuel, of which it is now anticipated to sell in between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen formerly, Neste said.
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"Renewable products' prices have actually been negatively impacted by a significant reduction in (the) diesel cost throughout the third quarter," Neste said in a statement.
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"At the exact same time, waste and residue feedstock rates have actually not decreased and eco-friendly item market value premiums have stayed weak," the business added.
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[Industry executives](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) and [experts](https://www.crunchbase.com/organization/mission-newenergy) have stated quickly [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers are seeking brand-new [outlets](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) in Asia for their exports, while Shell and BP have announced they are pausing growth strategies in Europe.
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While the cut in Neste's assistance on sales volumes of [sustainable](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) air travel fuel came as a surprise, the unfavorable influence on [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) margins from a lower diesel cost was to be anticipated, Inderes analyst Petri Gostowski stated.
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Neste's share rate had reversed some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. ([Reporting](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) by Elviira Luoma, [Essi Lehto](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) and [Boleslaw](https://www.businessnews.com.au/Company/Mission-NewEnergy) Lasocki \ No newline at end of file