commit 8535e7f59a5003d88919d3f52562e976e13d1e8c Author: jonelleposton3 Date: Sun Jan 12 04:16:16 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..a26bdd6 --- /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](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) this year
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Reduces both margin and volume outlook
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Weaker diesel market strikes [biofuel](https://www.google.com/search?kgmid=/m/0cqd_rb) prices
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(Adds analyst, background, detail in [paragraphs](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) 2-3, 9-11)
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By Elviira Luoma and Essi Lehto
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HELSINKI, Sept 11 (Reuters) [- Finnish](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) 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) company for the third time this year due to falling rates and likewise decreased its expected sales volumes, sending the business's share price down 10%.
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Neste stated a drop in the rate of routine diesel had actually 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 for waste and residue feedstock stayed high.
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A rush by U.S. fuel makers to recalibrate their plants to [produce sustainable](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) diesel has actually a supply excess of low-emissions biofuels, hammering revenue margins for refiners and threatening to impede the nascent industry.
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Neste in a statement slashed the expected average equivalent sales margin of its renewables system to in between $360-$480 per tonne of [biofuel](https://stocktwits.com/symbol/MNEL), below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.
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The [business](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) now also [expects renewables-based](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) [sales volumes](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had anticipated given that the start of the year, it added.
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A part of the volume cut originated from the production of [sustainable air](https://www.google.com/search?kgmid=/m/0cqd_rb) travel fuel, of which it is now [expected](https://forest500.org/rankings/companies/mission-newenergy-limited) to offer in between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen previously, Neste stated.
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"Renewable products' sales costs have been adversely affected by a significant decline in (the) diesel cost throughout the third quarter," Neste stated in a declaration.
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"At the very same time, waste and residue feedstock rates have actually not decreased and renewable product market value premiums have actually remained weak," the company included.
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[Industry](https://forest500.org/rankings/companies/mission-newenergy-limited) executives and analysts have said rapidly broadening Chinese [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) manufacturers are seeking brand-new [outlets](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) in Asia for their exports, while Shell and BP have revealed they are [pausing expansion](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) plans in Europe.
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While the cut in Neste's assistance on sales volumes of sustainable aviation fuel came as a surprise, the unfavorable effect on [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) margins from a lower diesel price was to be anticipated, Inderes expert Petri Gostowski stated.
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[Neste's share](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) price had actually [reversed](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) some losses by 1037 GMT but stayed down 5.8% on the day and 48% lower year-to-date. ([Reporting](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) by Elviira Luoma, Essi Lehto and Boleslaw Lasocki \ No newline at end of file