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 makes third cut to renewables organization outlook this year<br>
+<br>[Reduces](https://www.crunchbase.com/organization/mission-newenergy) both margin and volume outlook<br>
+<br>Weaker diesel market strikes [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) rates<br>
+<br>(Adds expert, background, information in paragraphs 2-3, 9-11)<br>
+<br>By [Elviira Luoma](https://www.pinterest.com.au/missionnewenergy/) and Essi Lehto<br>
+<br>HELSINKI, Sept 11 (Reuters) - Finnish [refiner Neste](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) on Wednesday cut the margin outlook for its [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) company for the third time this year due to falling costs and likewise reduced its expected sales volumes, sending the company's share rate down 10%.<br>
+<br>Neste said a drop in the price of routine diesel had actually [impacted](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) what it can charge for the [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) it makes in Europe and Singapore, while input expenses for waste and residue feedstock [remained](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) high.<br>
+<br>A rush by U.S. fuel makers to recalibrate their plants to produce eco-friendly diesel has produced a supply glut of low-emissions biofuels, hammering earnings margins for refiners and threatening to impede the [nascent market](https://www.zoominfo.com/c/mission-newenergy/346542889).<br>
+<br>Neste in a statement slashed the expected [average equivalent](https://www.crunchbase.com/organization/mission-newenergy) sales margin of its [renewables](https://www.zoominfo.com/c/mission-newenergy/346542889) system to in between $360-$480 per tonne of [biofuel](https://www.google.com/search?kgmid=/m/0cqd_rb), 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 sales [volumes](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had anticipated since the start of the year, it included.<br>
+<br>A part of the volume cut originated from the production of [sustainable aviation](https://www.pinterest.com.au/missionnewenergy/) fuel, of which it is now [expected](https://forest500.org/rankings/companies/mission-newenergy-limited) to sell between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen previously, [Neste stated](https://www.pinterest.com.au/missionnewenergy/).<br>
+<br>"Renewable items' prices have actually been negatively affected by a significant reduction in (the) diesel cost during the 3rd quarter," Neste said in a declaration.<br>
+<br>"At the same time, waste and residue feedstock rates have actually not decreased and renewable product market rate premiums have stayed weak," the business added.<br>
+<br>Industry executives and analysts have actually said rapidly expanding Chinese [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) manufacturers are looking for brand-new outlets 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 guidance on sales volumes of sustainable aviation fuel came as a surprise, the unfavorable impact on [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) margins from a lower diesel rate was to be expected,  Petri Gostowski said.<br>
+<br>Neste's share cost had actually [reversed](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) some losses by 1037 GMT but remained 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](https://www.bloomberg.com/profile/company/MNELF:US) Lasocki