Add 'Refiner Neste Warns of Weaker Biofuel Outlook, Shares Drop'

Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md

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+<br>[Company](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) makes third cut to [renewables business](https://stocktwits.com/symbol/MNEL) outlook this year<br>
+<br>Reduces both margin and volume outlook<br>
+<br>Weaker diesel market hits [biofuel](https://stocktwits.com/symbol/MNEL) rates<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.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) organization for the third time this year due to falling costs and also reduced its anticipated sales volumes, sending out the company's [share cost](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) down 10%.<br>
+<br> a drop in the cost of routine diesel had actually affected what it can charge for the [biofuel](https://stocktwits.com/symbol/MNEL) it makes in Europe and Singapore, while [input expenses](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) for waste and [residue feedstock](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) [remained](https://pitchbook.com/profiles/company/51278-86) high.<br>
+<br>A rush by U.S. fuel makers to recalibrate their plants to produce renewable diesel has [produced](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) a supply glut of low-emissions biofuels, hammering profit [margins](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) for refiners and threatening to impede the nascent market.<br>
+<br>Neste in a statement slashed the expected [average equivalent](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) sales margin of its [renewables unit](https://www.businessnews.com.au/Company/Mission-NewEnergy) to between $360-$480 per tonne of [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/), down from $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br>
+<br>The company now also expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had actually [predicted](https://www.bloomberg.com/profile/company/MNELF:US) considering that the start of the year, it added.<br>
+<br>A part of the volume cut originated from the production of sustainable air travel fuel, of which it is now [expected](https://forest500.org/rankings/companies/mission-newenergy-limited) to sell in between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen previously, Neste said.<br>
+<br>"Renewable items' prices have actually been negatively impacted by a considerable reduction in (the) diesel price throughout the third quarter," Neste said in a statement.<br>
+<br>"At the same time, waste and residue feedstock rates have actually not decreased and eco-friendly product market value premiums have actually stayed weak," the business added.<br>
+<br>Industry executives and experts have actually said quickly broadening Chinese [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) manufacturers are looking for [brand-new outlets](https://pitchbook.com/profiles/company/51278-86) in Asia for their exports, while Shell and BP have actually announced they are pausing growth plans in Europe.<br>
+<br>While the cut in Neste's assistance on sales volumes of sustainable aviation fuel came as a surprise, the negative impact on [biodiesel](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) margins from a lower diesel price was to be anticipated, Inderes expert Petri Gostowski stated.<br>
+<br>Neste's share cost had [reversed](https://www.google.com/search?kgmid=/m/0cqd_rb) some losses by 1037 GMT however stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://stocktwits.com/symbol/MNEL) Luoma, Essi Lehto and Boleslaw Lasocki