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 makes third cut to renewables service outlook this year<br>
+<br>[Reduces](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) both margin and volume outlook<br>
+<br>[Weaker diesel](https://www.google.com/search?kgmid=/m/0cqd_rb) market hits [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy) rates<br>
+<br>(Adds expert, background, detail in paragraphs 2-3, 9-11)<br>
+<br>By Elviira Luoma and Essi Lehto<br>
+<br>HELSINKI, Sept 11 (Reuters) - Finnish [refiner Neste](https://www.bloomberg.com/profile/company/MNELF:US) on Wednesday cut the margin outlook for its [biofuel](https://stocktwits.com/symbol/MNEL) company for the 3rd time this year due to falling costs and likewise lowered its anticipated sales volumes, sending the business's [share cost](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) down 10%.<br>
+<br>Neste said a drop in the price of regular diesel had affected what it can charge for the [biofuel](https://www.pinterest.com.au/missionnewenergy/) it makes in Europe and Singapore, while input expenses for waste and residue feedstock remained high.<br>
+<br>A rush by U.S. fuel makers to recalibrate their plants to [produce sustainable](https://forest500.org/rankings/companies/mission-newenergy-limited) diesel has actually developed a supply glut of low-emissions biofuels, hammering earnings [margins](https://www.bloomberg.com/profile/company/MNELF:US) for refiners and threatening to hamper the nascent market.<br>
+<br>Neste in a [statement slashed](https://www.businessnews.com.au/Company/Mission-NewEnergy) the anticipated average similar sales margin of its [renewables unit](https://www.pinterest.com.au/missionnewenergy/) to between $360-$480 per tonne of [biofuel](https://stocktwits.com/symbol/MNEL), down from $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br>
+<br>The business now likewise [expects renewables-based](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) sales [volumes](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had actually forecasted given that the start of the year, it included.<br>
+<br>A part of the [volume cut](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) came from the production of sustainable aviation fuel, of which it is now [anticipated](https://forest500.org/rankings/companies/mission-newenergy-limited) to sell in between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen previously, [Neste stated](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html).<br>
+<br>"Renewable items' prices have actually been adversely affected by a considerable reduction in (the) diesel price throughout the 3rd quarter," Neste said in a statement.<br>
+<br>"At the exact same time, waste and residue feedstock rates have actually not decreased and eco-friendly item market cost premiums have stayed weak," the company included.<br>
+<br>Industry executives and experts have actually stated rapidly expanding Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) producers are seeking brand-new  in Asia for their exports, while Shell and BP have announced they are pausing expansion strategies in Europe.<br>
+<br>While the cut in Neste's assistance on sales volumes of sustainable [aviation fuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) came as a surprise, the negative effect on [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) margins from a lower diesel rate was to be anticipated, Inderes expert Petri Gostowski stated.<br>
+<br>Neste's share cost had 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