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

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

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+<br>[Company](https://www.pinterest.com.au/missionnewenergy/) makes third cut to renewables organization outlook this year<br>
+<br>[Reduces](https://www.crunchbase.com/organization/mission-newenergy) both margin and volume outlook<br>
+<br>Weaker diesel market strikes [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) costs<br>
+<br>(Adds analyst, background, detail in paragraphs 2-3, 9-11)<br>
+<br>By [Elviira Luoma](https://www.pinterest.com.au/missionnewenergy/) and Essi Lehto<br>
+<br>HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its  for the third time this year due to falling costs and also decreased its [expected sales](https://forest500.org/rankings/companies/mission-newenergy-limited) volumes, sending the [company's](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) [share rate](https://www.pinterest.com.au/missionnewenergy/) down 10%.<br>
+<br>Neste stated a drop in the price of routine diesel had actually [impacted](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) what it can charge for the [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) it makes in Europe and Singapore, while [input expenses](https://www.crunchbase.com/organization/mission-newenergy) for waste and residue feedstock stayed 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 actually created a supply glut of low-emissions biofuels, hammering profit margins for refiners and threatening to hinder the [nascent market](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608).<br>
+<br>Neste in a statement slashed the expected average comparable sales margin of its renewables system to between $360-$480 per tonne of [biofuel](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), below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br>
+<br>The company now also expects renewables-based sales volumes 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 included.<br>
+<br>A part of the volume cut came from the production of sustainable aviation fuel, of which it is now anticipated to offer in between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen previously, [Neste stated](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).<br>
+<br>"Renewable items' sales rates have actually been negatively impacted by a substantial reduction in (the) diesel rate throughout the 3rd quarter," Neste said in a statement.<br>
+<br>"At the very same time, waste and residue feedstock prices have actually not reduced and eco-friendly item market price premiums have remained weak," the company added.<br>
+<br>Industry executives and analysts have actually said quickly broadening Chinese [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) manufacturers are looking for brand-new outlets in Asia for their exports, while Shell and BP have actually announced they are stopping briefly expansion plans in Europe.<br>
+<br>While the cut in Neste's guidance on sales volumes of [sustainable air](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) travel fuel came as a surprise, the negative influence on [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) margins from a lower diesel price was to be anticipated, Inderes expert Petri Gostowski said.<br>
+<br>Neste's share cost had actually [reversed](https://forest500.org/rankings/companies/mission-newenergy-limited) some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, [Essi Lehto](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) and [Boleslaw](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) Lasocki