jamedabbs0139/mission-biofuels-sdn.-bhd
1
0
Code Issues Projects Wiki

Add 'Refiner Neste Warns of Weaker Biofuel Outlook, Shares Drop'

Elinor Passmore
2025-01-12 01:22:51 +00:00
commit 45960aa7b2
1 changed files with 16 additions and 0 deletions
Download Patch File Download Diff File Expand all files Collapse all files

16
Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md Normal file

@@ -0,0 +1,16 @@
<br>Company makes 3rd cut to [renewables business](https://stocktwits.com/symbol/MNEL) outlook this year<br>
<br>Reduces both margin and volume outlook<br>
<br>Weaker diesel market hits [biofuel](https://www.crunchbase.com/organization/mission-newenergy) rates<br>
<br>(Adds analyst, background, detail in paragraphs 2-3, 9-11)<br>
<br>By [Elviira Luoma](https://www.crunchbase.com/organization/mission-newenergy) and Essi Lehto<br>
<br>HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) service for the third time this year due to falling rates and also [decreased](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) its [anticipated sales](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) volumes, sending the [business's share](https://www.bloomberg.com/profile/company/MNELF:US) cost down 10%.<br>
<br>Neste said a drop in the price of regular diesel had actually impacted what it can charge for the [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) it makes in Europe and Singapore, while input costs for waste and residue feedstock remained high.<br>
<br>A rush by U.S. [fuel makers](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) to recalibrate their plants to produce eco-friendly diesel has created a supply excess of low-emissions biofuels, hammering revenue margins for refiners and threatening to [restrain](https://forest500.org/rankings/companies/mission-newenergy-limited) the nascent market.<br>
<br>Neste in a declaration slashed the expected typical equivalent sales margin of its system 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>
<br>The company now also [anticipates renewables-based](https://www.crunchbase.com/organization/mission-newenergy) sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had [predicted](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) because the start of the year, it added.<br>
<br>A part of the volume cut came from the production of [sustainable aviation](https://www.businessnews.com.au/Company/Mission-NewEnergy) fuel, of which it is now expected to sell in between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen formerly, Neste stated.<br>
<br>"Renewable items' list prices have been negatively impacted by a significant decline in (the) diesel cost during the third quarter," Neste said in a [declaration](https://www.bloomberg.com/profile/company/MNELF:US).<br>
<br>"At the same time, waste and residue feedstock rates have not decreased and eco-friendly product market value premiums have actually stayed weak," the company included.<br>
<br>Industry executives and experts have actually said rapidly broadening Chinese [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) producers are seeking brand-new outlets in Asia for their exports, while Shell and BP have revealed they are pausing growth strategies in Europe.<br>
<br>While the cut in Neste's assistance on sales volumes of sustainable air travel fuel came as a surprise, the unfavorable effect on [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) [margins](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) from a lower diesel cost was to be anticipated, Inderes analyst Petri Gostowski stated.<br>
<br>[Neste's share](https://www.google.com/search?kgmid=/m/0cqd_rb) rate had [reversed](https://pitchbook.com/profiles/company/51278-86) 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