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<br>Company makes third cut to renewables service outlook this year<br> |
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<br>Reduces both margin and volume outlook<br> |
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<br>Weaker diesel market hits [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) prices<br> |
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<br>(Adds expert, background, detail in [paragraphs](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) 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 Neste on Wednesday cut the margin outlook for its [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) service for the 3rd time this year due to falling costs and also reduced its anticipated sales volumes, sending out the business's share cost down 10%.<br> |
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<br>[Neste stated](https://www.bloomberg.com/profile/company/MNELF:US) a drop in the price of routine diesel had actually [impacted](https://forest500.org/rankings/companies/mission-newenergy-limited) what it can charge for the [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) it makes in Europe and Singapore, while input expenses for waste and residue feedstock [remained](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) high.<br> |
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<br>A rush by U.S. fuel makers to [recalibrate](https://pitchbook.com/profiles/company/51278-86) their plants to [produce renewable](https://www.bloomberg.com/profile/company/MNELF:US) diesel has actually developed a supply glut of low-emissions biofuels, hammering earnings margins for refiners and threatening to impede the [nascent industry](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053).<br> |
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<br>Neste in a [statement slashed](https://www.bloomberg.com/profile/company/MNELF:US) the expected average similar sales margin of its renewables system to between $360-$480 per tonne of [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889), below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br> |
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<br>The company now likewise anticipates renewables-based sales [volumes](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually anticipated since the start of the year, it added.<br> |
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<br>A part of the volume cut came from the of [sustainable air](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) travel fuel, of which it is now expected to offer in between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen formerly, Neste stated.<br> |
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<br>"Renewable products' prices have actually been adversely affected by a substantial reduction in (the) diesel cost during the third quarter," Neste said in a statement.<br> |
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<br>"At the exact same time, waste and residue feedstock costs have not decreased and eco-friendly product market rate premiums have stayed weak," the business added.<br> |
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<br>Industry executives and analysts have stated rapidly broadening Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers are looking for brand-new outlets in Asia for their exports, while Shell and BP have revealed they are [stopping](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) briefly expansion strategies in Europe.<br> |
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<br>While the cut in Neste's guidance on sales volumes of [sustainable air](https://forest500.org/rankings/companies/mission-newenergy-limited) travel fuel came as a surprise, the negative effect on [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) margins from a lower diesel price was to be anticipated, Inderes [expert Petri](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) Gostowski said.<br> |
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<br>[Neste's share](https://www.crunchbase.com/organization/mission-newenergy) rate had reversed some losses by 1037 GMT but remained down 5.8% on the day and 48% lower year-to-date. ([Reporting](https://forest500.org/rankings/companies/mission-newenergy-limited) by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
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