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@ -0,0 +1,16 @@ |
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<br>Company makes third cut to renewables organization [outlook](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) this year<br> |
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<br>[Reduces](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) both margin and volume outlook<br> |
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<br>[Weaker diesel](https://www.pinterest.com.au/missionnewenergy/) market [strikes biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) costs<br> |
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<br>(Adds expert, background, detail 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](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) business for the 3rd time this year due to falling rates and likewise reduced its anticipated sales volumes, sending the business's share rate down 10%.<br> |
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<br>Neste said a drop in the cost of routine diesel had impacted 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](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) for waste and residue feedstock stayed high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to produce renewable diesel has actually produced a [supply glut](https://pitchbook.com/profiles/company/51278-86) of low-emissions biofuels, hammering profit margins for [refiners](https://pitchbook.com/profiles/company/51278-86) and threatening to restrain the nascent market.<br> |
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<br>Neste in a the expected typical similar sales margin of its [renewables unit](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to in between $360-$480 per tonne of [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889), below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
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<br>The business now also anticipates renewables-based sales [volumes](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually forecasted since the start of the year, it included.<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 sell between 350,000-550,000 tonnes this year, down from 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 considerable reduction in (the) diesel cost during the third quarter," Neste stated in a [declaration](https://www.zoominfo.com/c/mission-newenergy/346542889).<br> |
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<br>"At the same time, waste and residue feedstock rates have not decreased and sustainable item market value premiums have stayed weak," the business added.<br> |
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<br>Industry executives and analysts have said rapidly expanding Chinese [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) [manufacturers](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) are looking for new [outlets](https://pitchbook.com/profiles/company/51278-86) in Asia for their exports, while Shell and BP have announced they are pausing expansion strategies in Europe.<br> |
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<br>While the cut in Neste's guidance on sales volumes of sustainable aviation fuel came as a surprise, the negative impact on [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) margins from a [lower diesel](https://www.zoominfo.com/c/mission-newenergy/346542889) cost was to be expected, Inderes expert Petri Gostowski stated.<br> |
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<br>[Neste's share](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) cost had reversed some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) Luoma, Essi Lehto and Boleslaw Lasocki |
