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<br>Company makes third cut to renewables business outlook this year<br> |
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<br>Reduces both margin and volume outlook<br> |
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<br>Weaker diesel market hits [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) prices<br> |
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<br>(Adds analyst, 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](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) on Wednesday cut the margin outlook for its [biofuel](https://stocktwits.com/symbol/MNEL) service for the third time this year due to falling rates and likewise lowered its anticipated sales volumes, sending the business's share cost down 10%.<br> |
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<br>[Neste stated](https://www.bloomberg.com/profile/company/MNELF:US) a drop in the price of [routine diesel](https://www.google.com/search?kgmid=/m/0cqd_rb) had actually impacted what it can charge for the [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy) it makes in Europe and Singapore, while input costs for waste and residue feedstock remained high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to produce eco-friendly diesel has actually created a supply glut of low-emissions biofuels, hammering earnings margins for refiners and [threatening](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to impede the nascent industry.<br> |
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<br>Neste in a [statement slashed](https://www.bloomberg.com/profile/company/MNELF:US) the anticipated average comparable sales margin of its [renewables](https://forest500.org/rankings/companies/mission-newenergy-limited) system to between $360-$480 per tonne of [biofuel](https://stocktwits.com/symbol/MNEL), 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 business now also [anticipates renewables-based](https://www.bloomberg.com/profile/company/MNELF:US) sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had [anticipated](https://www.zoominfo.com/c/mission-newenergy/346542889) given that the start of the year, it [included](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).<br> |
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<br>A part of the volume cut originated from the production of [sustainable air](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) travel fuel, of which it is now [anticipated](https://stocktwits.com/symbol/MNEL) to offer between 350,000-550,000 tonnes this year, below in between 500,000 and 700,000 tonnes seen formerly, Neste said.<br> |
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<br>"Renewable items' list prices have actually been negatively affected by a significant decline in (the) diesel rate during the 3rd quarter," Neste stated in a declaration.<br> |
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<br>"At the exact same time, waste and residue feedstock prices have actually not reduced and renewable product market value premiums have stayed weak," the company included.<br> |
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<br>[Industry executives](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) and [experts](https://www.bloomberg.com/profile/company/MNELF:US) have stated quickly expanding Chinese [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) producers are seeking new outlets in Asia for their exports, while Shell and BP have revealed they are plans in Europe.<br> |
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<br>While the cut in Neste's guidance on [sales volumes](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) of sustainable aviation fuel came as a surprise, the unfavorable influence on [biodiesel](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) margins from a lower diesel cost was to be expected, Inderes expert Petri Gostowski stated.<br> |
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<br>Neste's share cost had actually reversed some losses by 1037 GMT but [remained](https://stocktwits.com/symbol/MNEL) down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
