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<br>Company makes 3rd cut to renewables organization outlook 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 strikes [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) rates<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 for its [biofuel](https://stocktwits.com/symbol/MNEL) company for the 3rd time this year due to falling costs and likewise decreased its anticipated sales volumes, sending the company's share price down 10%.<br> |
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<br>Neste said a drop in the price of routine diesel had actually impacted what it can charge for the [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) it makes in Europe and Singapore, while [input costs](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) for waste and [residue feedstock](https://pitchbook.com/profiles/company/51278-86) stayed high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to [produce renewable](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) diesel has actually produced a supply excess of low-emissions biofuels, hammering revenue margins for refiners and threatening to hamper the nascent market.<br> |
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<br>Neste in a statement slashed the expected typical comparable sales margin of its renewables system to between $360-$480 per tonne of [biofuel](https://stocktwits.com/symbol/MNEL), 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 likewise anticipates renewables-based sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had [predicted](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) because 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 air](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) travel fuel, of which it is now [anticipated](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to offer in between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen formerly, Neste said.<br> |
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<br>"Renewable products' list prices have actually been adversely impacted by a substantial decline in (the) diesel rate throughout the 3rd quarter," Neste said in a statement.<br> |
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<br>"At the same time, waste and residue feedstock rates have not decreased and renewable item market value premiums have remained weak," the [company](https://pitchbook.com/profiles/company/51278-86) added.<br> |
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<br>[Industry executives](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and experts have said quickly broadening Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) [manufacturers](https://forest500.org/rankings/companies/mission-newenergy-limited) are looking for [brand-new outlets](https://www.businessnews.com.au/Company/Mission-NewEnergy) in Asia for their exports, while Shell and BP have announced they are stopping briefly [growth strategies](https://forest500.org/rankings/companies/mission-newenergy-limited) in Europe.<br> |
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<br>While the cut in [Neste's guidance](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) on sales volumes of sustainable [aviation fuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) came as a surprise, the unfavorable impact on margins from a lower diesel price was to be expected, Inderes expert Petri Gostowski said.<br> |
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<br>Neste's share price had [reversed](https://www.bloomberg.com/profile/company/MNELF:US) some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, [Essi Lehto](https://forest500.org/rankings/companies/mission-newenergy-limited) and Boleslaw Lasocki |
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