|
|
@ -0,0 +1,16 @@ |
|
|
|
|
|
<br>[Company](https://forest500.org/rankings/companies/mission-newenergy-limited) makes third cut to renewables service outlook this year<br> |
|
|
|
|
|
<br>Reduces both margin and volume outlook<br> |
|
|
|
|
|
<br>Weaker diesel market hits [biofuel](https://stocktwits.com/symbol/MNEL) costs<br> |
|
|
|
|
|
<br>(Adds analyst, background, detail in paragraphs 2-3, 9-11)<br> |
|
|
|
|
|
<br>By Elviira Luoma and Essi Lehto<br> |
|
|
|
|
|
<br>HELSINKI, Sept 11 (Reuters) - Finnish [refiner Neste](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) on Wednesday cut the margin outlook for its [biofuel](https://stocktwits.com/symbol/MNEL) service for the third time this year due to falling rates and likewise decreased its expected sales volumes, sending out the business's share rate down 10%.<br> |
|
|
|
|
|
<br>Neste stated a drop in the cost of [regular diesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) had actually [impacted](https://pitchbook.com/profiles/company/51278-86) what it can charge for the biofuel it makes in Europe and Singapore, while for waste and residue feedstock [remained](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) high.<br> |
|
|
|
|
|
<br>A rush by U.S. fuel makers to recalibrate their plants to [produce sustainable](https://www.zoominfo.com/c/mission-newenergy/346542889) diesel has developed a [supply glut](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) of low-emissions biofuels, hammering revenue margins for refiners and threatening to impede the nascent industry.<br> |
|
|
|
|
|
<br>Neste in a statement slashed the anticipated typical comparable [sales margin](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) of its renewables unit to between $360-$480 per tonne of [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd), below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br> |
|
|
|
|
|
<br>The company now also [expects renewables-based](https://pitchbook.com/profiles/company/51278-86) sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had actually forecasted considering that the start of the year, it added.<br> |
|
|
|
|
|
<br>A part of the volume cut came from the production of sustainable aviation fuel, of which it is now anticipated to offer between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen formerly, [Neste stated](https://www.businessnews.com.au/Company/Mission-NewEnergy).<br> |
|
|
|
|
|
<br>"Renewable items' list prices have actually been negatively impacted by a substantial reduction in (the) diesel rate during the third quarter," Neste stated in a declaration.<br> |
|
|
|
|
|
<br>"At the exact same time, waste and residue feedstock prices have not decreased and eco-friendly product market value premiums have actually stayed weak," the business added.<br> |
|
|
|
|
|
<br>Industry executives and experts have actually stated rapidly expanding Chinese [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) manufacturers are [seeking brand-new](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) [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](https://forest500.org/rankings/companies/mission-newenergy-limited) in Europe.<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 [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) margins from a lower diesel cost was to be expected, [Inderes expert](https://www.businessnews.com.au/Company/Mission-NewEnergy) Petri Gostowski said.<br> |
|
|
|
|
|
<br>Neste's share rate had [reversed](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://www.zoominfo.com/c/mission-newenergy/346542889) Luoma, Essi Lehto and Boleslaw Lasocki |
