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 3rd cut to renewables business outlook this year<br>
+<br>Reduces both margin and volume outlook<br>
+<br>Weaker diesel [market strikes](https://www.pinterest.com.au/missionnewenergy/) [biofuel](https://stocktwits.com/symbol/MNEL) costs<br>
+<br>(Adds analyst, background, information in paragraphs 2-3, 9-11)<br>
+<br>By Elviira Luoma and Essi Lehto<br>
+<br>HELSINKI, Sept 11 (Reuters) [- Finnish](https://pitchbook.com/profiles/company/51278-86) refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.pinterest.com.au/missionnewenergy/) organization for the 3rd time this year due to falling costs and also [reduced](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) its [anticipated sales](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) volumes, sending the company's share rate down 10%.<br>
+<br>Neste stated a drop in the cost of regular diesel had actually impacted what it can charge for the  it makes in Europe and Singapore, while [input expenses](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) for waste and residue feedstock stayed high.<br>
+<br>A rush by U.S. fuel makers to [recalibrate](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) their plants to produce renewable diesel has created a supply glut of low-emissions biofuels, hammering profit margins for refiners and threatening to restrain the nascent industry.<br>
+<br>Neste in a declaration slashed the expected typical equivalent sales margin of its renewables unit to between $360-$480 per tonne of [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy), down from $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br>
+<br>The business now also expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually [forecasted](https://stocktwits.com/symbol/MNEL) because the start of the year, it included.<br>
+<br>A part of the volume cut originated from the production of sustainable aviation fuel, of which it is now expected to offer in between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen formerly, Neste said.<br>
+<br>"Renewable items' prices have actually been adversely affected by a considerable reduction in (the) diesel cost throughout the third quarter," Neste stated in a declaration.<br>
+<br>"At the exact same time, waste and residue feedstock prices have not reduced and renewable product market cost premiums have actually stayed weak," the [business included](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608).<br>
+<br>Industry executives and experts have actually stated rapidly broadening Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) [manufacturers](https://www.pinterest.com.au/missionnewenergy/) are seeking new [outlets](https://pitchbook.com/profiles/company/51278-86) in Asia for their exports, while Shell and BP have revealed they are stopping briefly [expansion plans](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) in Europe.<br>
+<br>While the cut in Neste's guidance on [sales volumes](https://pitchbook.com/profiles/company/51278-86) of sustainable air travel fuel came as a surprise, the negative effect on [biodiesel margins](https://www.zoominfo.com/c/mission-newenergy/346542889) from a lower diesel price was to be expected, Inderes analyst Petri [Gostowski stated](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm).<br>
+<br>[Neste's share](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) rate had [reversed](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) some losses by 1037 GMT however stayed down 5.8% on the day and 48% [lower year-to-date](https://www.pinterest.com.au/missionnewenergy/). (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki