|
|
@ -0,0 +1,16 @@ |
|
|
|
|
|
<br>[Company](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) makes 3rd cut to renewables business [outlook](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) this year<br> |
|
|
|
|
|
<br>[Reduces](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) both margin and volume outlook<br> |
|
|
|
|
|
<br>Weaker diesel market hits biofuel rates<br> |
|
|
|
|
|
<br>(Adds analyst, background, information in paragraphs 2-3, 9-11)<br> |
|
|
|
|
|
<br>By Elviira Luoma and Essi Lehto<br> |
|
|
|
|
|
<br>HELSINKI, Sept 11 (Reuters) [- Finnish](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://stocktwits.com/symbol/MNEL) business for the third time this year due to falling prices and likewise decreased its anticipated sales volumes, sending out the [company's share](https://www.pinterest.com.au/missionnewenergy/) price down 10%.<br> |
|
|
|
|
|
<br>Neste said a drop in the rate of regular diesel had impacted what it can charge for the biofuel it makes in Europe and Singapore, while [input costs](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) for waste and [residue feedstock](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) remained high.<br> |
|
|
|
|
|
<br>A rush by U.S. [fuel makers](https://www.crunchbase.com/organization/mission-newenergy) to recalibrate their plants to produce renewable diesel has produced a supply glut of low-emissions biofuels, hammering revenue margins for refiners and threatening to hamper the [nascent market](https://www.pinterest.com.au/missionnewenergy/).<br> |
|
|
|
|
|
<br>Neste in a statement slashed the expected typical comparable sales margin of its [renewables](https://www.bloomberg.com/profile/company/MNELF:US) unit to in between $360-$480 per tonne of biofuel, down from $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
|
|
|
|
|
<br>The company 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 forecasted considering that the start of the year, it included.<br> |
|
|
|
|
|
<br>A part of the volume cut came from the [production](https://www.businessnews.com.au/Company/Mission-NewEnergy) of [sustainable aviation](https://www.crunchbase.com/organization/mission-newenergy) fuel, of which it is now [anticipated](https://forest500.org/rankings/companies/mission-newenergy-limited) to offer between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen previously, Neste said.<br> |
|
|
|
|
|
<br>"Renewable items' prices have been adversely impacted by a substantial decline in (the) diesel cost throughout the third quarter," Neste said in a statement.<br> |
|
|
|
|
|
<br>"At the very same time, waste and residue feedstock prices have not reduced and renewable product market price premiums have actually remained weak," the business added.<br> |
|
|
|
|
|
<br>[Industry executives](https://www.bloomberg.com/profile/company/MNELF:US) and analysts have actually [stated rapidly](https://www.businessnews.com.au/Company/Mission-NewEnergy) expanding Chinese [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) producers are looking for new outlets in Asia for their exports, while Shell and BP have actually [revealed](https://pitchbook.com/profiles/company/51278-86) they are pausing growth [strategies](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) in Europe.<br> |
|
|
|
|
|
<br>While the cut in Neste's guidance on sales volumes of travel fuel came as a surprise, the unfavorable 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](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) analyst Petri Gostowski stated.<br> |
|
|
|
|
|
<br>Neste's share rate had reversed some losses by 1037 GMT but stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
