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<br>[Company](https://www.google.com/search?kgmid=/m/0cqd_rb) makes third cut to renewables organization outlook this year<br> |
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<br>[Reduces](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) both margin and volume outlook<br> |
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<br>Weaker diesel market strikes [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) costs<br> |
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<br>(Adds analyst, background, detail in paragraphs 2-3, 9-11)<br> |
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<br>By [Elviira Luoma](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) and Essi Lehto<br> |
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<br>HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste 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](https://www.crunchbase.com/organization/mission-newenergy) and also decreased its [anticipated sales](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) volumes, sending the company's share price down 10%.<br> |
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<br>Neste stated a drop in the rate of routine diesel had [impacted](https://www.businessnews.com.au/Company/Mission-NewEnergy) what it can charge for the [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) it makes in Europe and Singapore, while for waste and residue feedstock remained high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to [produce sustainable](https://www.businessnews.com.au/Company/Mission-NewEnergy) diesel has actually created a supply glut of low-emissions biofuels, hammering profit margins for refiners and [threatening](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) to hamper the nascent industry.<br> |
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<br>Neste in a statement slashed the anticipated average comparable sales margin of its [renewables](https://www.pinterest.com.au/missionnewenergy/) system to between $360-$480 per tonne of [biofuel](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), below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
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<br>The business now also expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually [predicted](https://www.businessnews.com.au/Company/Mission-NewEnergy) considering that the start of the year, it included.<br> |
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<br>A part of the volume cut came from the production of sustainable air travel fuel, of which it is now expected to sell in between 350,000-550,000 tonnes this year, below in between 500,000 and 700,000 tonnes seen previously, Neste said.<br> |
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<br>"Renewable products' prices have actually been negatively impacted by a significant reduction in (the) diesel cost during the 3rd quarter," [Neste stated](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) in a declaration.<br> |
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<br>"At the same time, waste and residue feedstock prices have not reduced and renewable product market value premiums have actually stayed weak," the company included.<br> |
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<br>Industry executives and analysts have actually said quickly broadening Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers are looking for new outlets in Asia for their exports, while Shell and BP have actually announced they are pausing growth [strategies](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) in Europe.<br> |
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<br>While the cut in Neste's guidance on sales volumes of [sustainable aviation](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) fuel came as a surprise, the unfavorable effect on [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) margins from a lower diesel rate was to be anticipated, [Inderes expert](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) Petri Gostowski said.<br> |
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<br>Neste's share cost had actually reversed some losses by 1037 GMT however stayed down 5.8% on the day and 48% lower year-to-date. ([Reporting](https://pitchbook.com/profiles/company/51278-86) by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
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