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<br>Company makes third cut to renewables organization outlook this year<br> |
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<br>[Reduces](https://www.crunchbase.com/organization/mission-newenergy) both margin and volume outlook<br> |
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<br>Weaker diesel market hits [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) 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 and Essi Lehto<br> |
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<br>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%.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>"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.<br> |
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<br>"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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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 |
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