From 1d16ce7d854ec66e8ef25af865ed752d93f4f44b Mon Sep 17 00:00:00 2001 From: Bryan Triplett Date: Fri, 17 Jan 2025 19:40:57 +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..659db53 --- /dev/null +++ b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md @@ -0,0 +1,16 @@ +
Company makes 3rd cut to [renewables company](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) outlook this year
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Reduces both margin and volume outlook
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Weaker diesel market strikes [biofuel](https://stocktwits.com/symbol/MNEL) costs
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(Adds expert, background, detail in paragraphs 2-3, 9-11)
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By Elviira Luoma 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.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) service for the 3rd time this year due to falling rates and also decreased its [anticipated sales](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) volumes, sending out the business's share cost down 10%.
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Neste said a drop in the rate of regular diesel had affected what it can charge for the [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) it makes in Europe and Singapore, while [input expenses](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) for waste and residue feedstock stayed high.
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A rush by U.S. [fuel makers](https://www.zoominfo.com/c/mission-newenergy/346542889) to recalibrate their plants to produce eco-friendly diesel has produced a supply glut of low-emissions biofuels, hammering revenue margins for [refiners](https://www.crunchbase.com/organization/mission-newenergy) and [threatening](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) to impede the [nascent market](https://www.bloomberg.com/profile/company/MNELF:US).
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Neste in a statement slashed the anticipated average similar [sales margin](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) of its renewables unit to in between $360-$480 per tonne of [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html), 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 now likewise expects renewables-based sales in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had predicted since the start of the year, it added.
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A part of the volume cut [originated](https://www.businessnews.com.au/Company/Mission-NewEnergy) from the [production](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) of [sustainable air](https://www.zoominfo.com/c/mission-newenergy/346542889) travel fuel, of which it is now [anticipated](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) to sell in 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 been negatively impacted by a considerable decline in (the) diesel price throughout the third quarter," Neste stated in a statement.
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"At the same time, waste and residue feedstock rates have actually not reduced and eco-friendly item market value premiums have stayed weak," the business included.
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Industry executives and analysts have actually said quickly expanding 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 actually [revealed](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) they are stopping briefly expansion plans in Europe.
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While the cut in Neste's assistance on sales volumes of sustainable aviation fuel came as a surprise, the negative effect on [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) margins from a lower diesel rate was to be anticipated, Inderes analyst Petri [Gostowski](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) said.
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Neste's share rate had actually reversed some losses by 1037 GMT but remained 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