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<br>Company makes 3rd cut to [renewables company](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) outlook this year<br> |
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<br>Reduces both margin and volume outlook<br> |
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<br>Weaker diesel market strikes [biofuel](https://stocktwits.com/symbol/MNEL) costs<br> |
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<br>(Adds expert, background, detail in paragraphs 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.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%.<br> |
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<br>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.<br> |
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<br>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).<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>"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.<br> |
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<br>"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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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 |
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