1 changed files with 16 additions and 0 deletions
@ -0,0 +1,16 @@ |
|||
<br>[Company](https://www.crunchbase.com/organization/mission-newenergy) makes 3rd cut to renewables organization outlook this year<br> |
|||
<br>[Reduces](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) both margin and volume outlook<br> |
|||
<br>Weaker diesel market hits biofuel prices<br> |
|||
<br>(Adds expert, background, detail in paragraphs 2-3, 9-11)<br> |
|||
<br>By Elviira Luoma and Essi Lehto<br> |
|||
<br>HELSINKI, Sept 11 (Reuters) - Finnish refiner Neste on Wednesday cut the margin outlook for its [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) organization for the third time this year due to falling prices and likewise [decreased](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) its [expected sales](https://www.google.com/search?kgmid=/m/0cqd_rb) volumes, sending out the [company's share](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) rate down 10%.<br> |
|||
<br>Neste said a drop in the price of regular diesel had actually [impacted](https://pitchbook.com/profiles/company/51278-86) what it can charge for the [biofuel](https://stocktwits.com/symbol/MNEL) it makes in Europe and Singapore, while input costs for waste and residue feedstock stayed high.<br> |
|||
<br>A rush by U.S. [fuel makers](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) to [recalibrate](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) their plants to [produce sustainable](https://www.bloomberg.com/profile/company/MNELF:US) diesel has developed a supply glut of low-emissions biofuels, hammering revenue margins for refiners and [threatening](https://www.crunchbase.com/organization/mission-newenergy) to impede the nascent industry.<br> |
|||
<br>Neste in a statement slashed the expected average comparable sales margin of its renewables unit to between $360-$480 per tonne of biofuel, below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br> |
|||
<br>The business now also anticipates renewables-based sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually [anticipated](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) since the start of the year, it added.<br> |
|||
<br>A part of the volume cut came from the production of [sustainable air](https://www.zoominfo.com/c/mission-newenergy/346542889) travel fuel, of which it is now expected to sell in between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen previously, Neste said.<br> |
|||
<br>"Renewable products' list prices have been negatively impacted by a significant decline in (the) diesel price during the third quarter," Neste stated in a statement.<br> |
|||
<br>"At the exact same time, waste and residue feedstock costs have actually not decreased and eco-friendly product market price premiums have actually remained weak," the company included.<br> |
|||
<br>Industry executives and analysts have said rapidly broadening Chinese [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) producers are seeking brand-new [outlets](https://www.crunchbase.com/organization/mission-newenergy) in Asia for their exports, while Shell and BP have announced they are [pausing expansion](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) plans in Europe.<br> |
|||
<br>While the cut in Neste's assistance on sales volumes of sustainable aviation fuel came as a surprise, the unfavorable influence on [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) margins from a [lower diesel](https://forest500.org/rankings/companies/mission-newenergy-limited) cost was to be expected, Inderes expert [Petri Gostowski](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) said.<br> |
|||
<br>Neste's share cost had reversed some losses by 1037 GMT but remained down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) Luoma, Essi Lehto and Boleslaw Lasocki |
|||
Loading…
Reference in new issue