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<br>Company makes third cut to renewables service 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) prices<br> |
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<br>(Adds expert, background, information 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 organization for the third time this year due to [falling](https://www.google.com/search?kgmid=/m/0cqd_rb) rates and also lowered its expected sales volumes, sending the business's share cost down 10%.<br> |
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<br>Neste said a drop in the rate of routine diesel had impacted what it can charge for the biofuel it makes in Europe and Singapore, while input expenses for waste and residue feedstock [remained](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) high.<br> |
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<br>A rush by U.S. [fuel makers](https://www.pinterest.com.au/missionnewenergy/) to [recalibrate](https://www.zoominfo.com/c/mission-newenergy/346542889) their plants to [produce sustainable](https://www.crunchbase.com/organization/mission-newenergy) diesel has actually developed a supply excess of [low-emissions](https://www.crunchbase.com/organization/mission-newenergy) biofuels, hammering earnings margins for refiners and [threatening](https://www.google.com/search?kgmid=/m/0cqd_rb) to restrain the nascent market.<br> |
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<br>Neste in a statement slashed the anticipated typical similar sales margin of its renewables unit to in between $360-$480 per tonne of [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048), below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br> |
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<br>The business now also anticipates renewables-based sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had actually anticipated considering that the start of the year, it included.<br> |
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<br>A part of the volume cut originated from the production of sustainable air travel 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 previously, Neste stated.<br> |
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<br>"Renewable products' sales costs have been negatively affected by a considerable reduction in (the) diesel rate throughout the third quarter," Neste stated in a statement.<br> |
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<br>"At the exact same time, waste and residue feedstock costs have not reduced and sustainable product market value premiums have actually remained weak," the [company included](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/).<br> |
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<br>Industry executives and [experts](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) have said rapidly expanding [Chinese](https://www.pinterest.com.au/missionnewenergy/) [biodiesel](https://www.pinterest.com.au/missionnewenergy/) manufacturers are looking for new [outlets](https://forest500.org/rankings/companies/mission-newenergy-limited) in Asia for their exports, while Shell and BP have actually revealed they are [pausing expansion](https://pitchbook.com/profiles/company/51278-86) plans in Europe.<br> |
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<br>While the cut in on sales volumes of [sustainable air](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) travel fuel 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 price was to be expected, Inderes expert Petri [Gostowski](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) said.<br> |
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<br>[Neste's share](https://pitchbook.com/profiles/company/51278-86) cost had actually reversed some losses by 1037 GMT but stayed down 5.8% on the day and 48% [lower year-to-date](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053). (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
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