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<br>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<br> |
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<br>[Reduces](https://www.crunchbase.com/organization/mission-newenergy) both margin and volume outlook<br> |
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<br>Weaker diesel market hits biofuel rates<br> |
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<br>(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)<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](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%.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>"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.<br> |
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<br>"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).<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>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 |
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