From 826d90241af16968c9af92fb17ab214576223d89 Mon Sep 17 00:00:00 2001 From: Gail Foran Date: Sat, 18 Jan 2025 12:07:07 +0000 Subject: [PATCH] Add 'Refiner Neste Warns of Weaker Biofuel Outlook, Shares Drop' --- ...s-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md | 16 ++++++++++++++++ 1 file changed, 16 insertions(+) create mode 100644 Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md 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..6bff119 --- /dev/null +++ b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md @@ -0,0 +1,16 @@ +
Company makes third cut to renewables organization outlook this year
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[Reduces](https://www.crunchbase.com/organization/mission-newenergy) both margin and volume outlook
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Weaker diesel market hits [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) costs
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(Adds analyst, background, detail in paragraphs 2-3, 9-11)
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By Elviira Luoma and Essi Lehto
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HELSINKI, Sept 11 (Reuters) - Finnish [refiner](https://stocktwits.com/symbol/MNEL) Neste on Wednesday cut the margin outlook for its [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) company for the third time this year due to falling prices and likewise [decreased](https://www.google.com/search?kgmid=/m/0cqd_rb) its expected sales volumes, sending the [company's share](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) rate down 10%.
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Neste stated a drop in the rate of routine diesel had actually affected what it can charge for the [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) it makes in Europe and Singapore, while input costs for waste and residue feedstock [remained](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) high.
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A rush by U.S. fuel makers to [recalibrate](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) their plants to produce eco-friendly diesel has actually created a supply glut of low-emissions biofuels, hammering revenue [margins](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) for refiners and [threatening](https://stocktwits.com/symbol/MNEL) to hinder the nascent market.
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Neste in a [statement slashed](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) the expected average equivalent [sales margin](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) of its renewables unit 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 now also expects renewables-based sales [volumes](https://www.crunchbase.com/organization/mission-newenergy) in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had forecasted since the start of the year, it included.
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A part of the [volume cut](https://www.crunchbase.com/organization/mission-newenergy) came from the production of fuel, of which it is now expected to offer between 350,000-550,000 tonnes this year, below in between 500,000 and 700,000 tonnes seen previously, Neste said.
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"Renewable items' list prices have actually been negatively impacted by a considerable decrease in (the) diesel rate throughout the 3rd quarter," Neste said in a statement.
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"At the exact same time, waste and residue feedstock prices have actually not decreased and eco-friendly product market value premiums have actually remained weak," the company added.
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Industry executives and experts have actually said quickly broadening Chinese [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) producers are seeking new outlets in Asia for their exports, while Shell and BP have announced they are stopping briefly [expansion strategies](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) in Europe.
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While the cut in Neste's assistance on sales volumes of sustainable air travel fuel came as a surprise, the [unfavorable](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) influence on [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) margins from a lower diesel price was to be anticipated, Inderes expert Petri Gostowski stated.
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Neste's share rate had actually [reversed](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) some losses by 1037 GMT but stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki \ No newline at end of file