From 45960aa7b28ff0f64a59a99629766188efd2db8a Mon Sep 17 00:00:00 2001 From: jamedabbs0139 Date: Sun, 12 Jan 2025 01:22:51 +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..d9deb91 --- /dev/null +++ b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md @@ -0,0 +1,16 @@ +
Company makes 3rd cut to [renewables business](https://stocktwits.com/symbol/MNEL) outlook this year
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Reduces both margin and volume outlook
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Weaker diesel market hits [biofuel](https://www.crunchbase.com/organization/mission-newenergy) rates
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(Adds analyst, background, detail in paragraphs 2-3, 9-11)
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By [Elviira Luoma](https://www.crunchbase.com/organization/mission-newenergy) 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.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%.
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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.
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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.
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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.
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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.
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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.
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"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).
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"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.
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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.
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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 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.
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[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 \ No newline at end of file