From b5a08fcb21338155fa5bdb1ead8588e5a53bc62d Mon Sep 17 00:00:00 2001 From: Delilah Joe Date: Thu, 16 Jan 2025 22:07:11 +0800 Subject: [PATCH] Add 'Refiner Neste Warns of Weaker Biofuel Outlook, Shares Drop' --- ...ste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md | 16 ++++++++++++++++ 1 file changed, 16 insertions(+) create mode 100644 Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md diff --git a/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md new file mode 100644 index 0000000..cc74564 --- /dev/null +++ b/Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md @@ -0,0 +1,16 @@ +
Company makes third cut to [renewables company](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) [outlook](https://www.crunchbase.com/organization/mission-newenergy) this year
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[Reduces](https://www.crunchbase.com/organization/mission-newenergy) both margin and volume outlook
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Weaker diesel market hits biofuel rates
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(Adds expert, background, detail in [paragraphs](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) 2-3, 9-11)
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By Elviira Luoma and Essi Lehto
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HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) business for the 3rd time this year due to falling prices and also lowered its anticipated sales volumes, sending the company's share rate down 10%.
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Neste stated a drop in the cost of routine diesel had actually affected what it can charge for the biofuel it makes in Europe and Singapore, while [input costs](https://www.zoominfo.com/c/mission-newenergy/346542889) for waste and residue feedstock [remained](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) high.
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A rush by U.S. fuel makers to recalibrate their plants to produce renewable diesel has actually created a [supply glut](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) of low-emissions biofuels, hammering earnings [margins](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) for refiners and threatening to [restrain](https://www.bloomberg.com/profile/company/MNELF:US) the nascent market.
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Neste in a declaration slashed the expected typical equivalent [sales margin](https://forest500.org/rankings/companies/mission-newenergy-limited) of its [renewables](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) system 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 below the $600-$800 seen in February.
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The company now likewise [expects renewables-based](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had forecasted given that the start of the year, it added.
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A part of the volume cut came from the production of sustainable air travel fuel, of which it is now expected to sell between 350,000-550,000 tonnes this year, below in between 500,000 and 700,000 tonnes seen previously, Neste said.
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"Renewable items' list prices have been adversely affected by a substantial reduction in (the) diesel price throughout the 3rd quarter," Neste said in a declaration.
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"At the same time, waste and residue feedstock rates have not reduced and renewable product market value premiums have remained weak," the [company included](https://forest500.org/rankings/companies/mission-newenergy-limited).
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Industry executives and experts have said rapidly broadening Chinese [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) manufacturers are seeking new outlets in Asia for their exports, while Shell and BP have announced they are [pausing expansion](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) plans in Europe.
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While the cut in Neste's guidance on sales [volumes](https://www.crunchbase.com/organization/mission-newenergy) of sustainable air 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 anticipated, Inderes analyst Petri Gostowski said.
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Neste's share cost had [reversed](https://www.google.com/search?kgmid=/m/0cqd_rb) some losses by 1037 GMT however remained down 5.8% on the day and 48% [lower year-to-date](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/). (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki \ No newline at end of file