From 2f6ba65c386235ab74d10eb3c9a09a60b6c8bba5 Mon Sep 17 00:00:00 2001 From: karolinkieran Date: Sat, 11 Jan 2025 21:03:38 +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..9c4a44a --- /dev/null +++ b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md @@ -0,0 +1,16 @@ +
Company makes third cut to renewables business [outlook](https://www.pinterest.com.au/missionnewenergy/) this year
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Reduces both margin and volume outlook
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Weaker diesel market hits [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) rates
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(Adds analyst, background, detail in paragraphs 2-3, 9-11)
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By [Elviira Luoma](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) and Essi Lehto
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HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) service for the 3rd time this year due to falling costs and also decreased its expected sales volumes, sending out the [business's share](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) rate down 10%.
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Neste said a drop in the price of routine diesel had actually impacted what it can charge for the biofuel it makes in Europe and Singapore, while input costs for waste and residue feedstock remained high.
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A rush by U.S. fuel makers to recalibrate their plants to produce sustainable diesel has produced a supply glut of low-emissions biofuels, hammering profit margins for and [threatening](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to hamper the [nascent market](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/).
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Neste in a statement slashed the anticipated average similar [sales margin](https://pitchbook.com/profiles/company/51278-86) of its [renewables](https://www.bloomberg.com/profile/company/MNELF:US) unit to in between $360-$480 per tonne of biofuel, down from $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.
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The [company](https://pitchbook.com/profiles/company/51278-86) now also [expects renewables-based](https://www.zoominfo.com/c/mission-newenergy/346542889) sales [volumes](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had actually [forecasted](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) considering that the start of the year, it included.
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A part of the volume cut originated from the [production](https://www.pinterest.com.au/missionnewenergy/) of sustainable air travel fuel, of which it is now anticipated to sell between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen formerly, Neste said.
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"Renewable items' list prices have actually been negatively affected by a considerable reduction in (the) diesel price during the third quarter," Neste stated in a declaration.
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"At the same time, waste and residue feedstock rates have actually not decreased and sustainable item market value premiums have remained weak," the [company included](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/).
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Industry executives and analysts have actually said [rapidly expanding](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) Chinese [biodiesel manufacturers](https://www.businessnews.com.au/Company/Mission-NewEnergy) are looking for new outlets in Asia for their exports, while Shell and BP have announced they are [pausing expansion](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) plans 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 negative effect on [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) margins from a lower diesel price was to be expected, Inderes expert Petri [Gostowski stated](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053).
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Neste's share price had reversed some losses by 1037 GMT however stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, [Essi Lehto](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and Boleslaw Lasocki \ No newline at end of file