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<br>Company makes third cut to renewables company outlook this year<br> |
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<br>[Reduces](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) both margin and volume outlook<br> |
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<br>Weaker diesel market 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](https://forest500.org/rankings/companies/mission-newenergy-limited) for its [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) organization for the 3rd time this year due to falling rates and likewise lowered its anticipated sales volumes, sending the [business's share](https://www.google.com/search?kgmid=/m/0cqd_rb) cost down 10%.<br> |
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<br>Neste stated a drop in the price of [routine diesel](https://forest500.org/rankings/companies/mission-newenergy-limited) had [impacted](https://pitchbook.com/profiles/company/51278-86) what it can charge for the [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) it makes in Europe and Singapore, while input expenses for waste and [residue feedstock](https://forest500.org/rankings/companies/mission-newenergy-limited) remained high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to produce sustainable diesel has actually created a [supply excess](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) of low-emissions biofuels, hammering revenue margins for refiners and threatening to hamper the [nascent industry](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/).<br> |
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<br>Neste in a statement slashed the expected average similar sales margin of its renewables system to in between $360-$480 per tonne of [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd), 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 also expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually anticipated because 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 aviation fuel, of which it is now expected to offer 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' list prices have been adversely impacted by a considerable decrease in (the) diesel cost throughout the 3rd quarter," Neste said in a declaration.<br> |
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<br>"At the very same time, waste and residue feedstock prices have actually not reduced and renewable product market cost premiums have actually stayed weak," the business included.<br> |
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<br>Industry executives and [analysts](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) have actually said quickly broadening Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) producers are [seeking](https://www.google.com/search?kgmid=/m/0cqd_rb) new outlets in Asia for their exports, while Shell and BP have actually announced they are pausing growth plans in Europe.<br> |
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<br>While the cut in Neste's guidance on sales volumes of sustainable air [travel fuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) came as a surprise, the negative impact on [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) margins from a lower diesel rate was to be anticipated, Inderes expert Petri [Gostowski](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) said.<br> |
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<br>Neste's share cost had actually [reversed](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) some losses by 1037 GMT but remained down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, [Essi Lehto](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and Boleslaw Lasocki |
