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<br>[Company](https://www.bloomberg.com/profile/company/MNELF:US) makes third cut to [renewables service](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) outlook this year<br> |
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<br>Reduces both margin and volume outlook<br> |
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<br>Weaker diesel market strikes [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) prices<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](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) 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://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) business for the 3rd time this year due to falling prices and also [decreased](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) its [anticipated sales](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) volumes, sending out the company's share cost down 10%.<br> |
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<br>Neste stated a drop in the rate of routine diesel had actually affected what it can charge for the [biofuel](https://www.crunchbase.com/organization/mission-newenergy) it makes in Europe and Singapore, while input costs for waste and residue feedstock remained high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to produce sustainable diesel has created a supply excess of [low-emissions](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) biofuels, hammering profit [margins](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) for refiners and threatening to hinder the nascent industry.<br> |
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<br>Neste in a statement slashed the anticipated typical similar sales margin of its renewables unit to between $360-$480 per tonne of [biofuel](https://www.pinterest.com.au/missionnewenergy/), below $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br> |
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<br>The company now likewise [anticipates renewables-based](https://www.google.com/search?kgmid=/m/0cqd_rb) sales [volumes](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had anticipated since the start of the year, it added.<br> |
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<br>A part of the volume cut came from the [production](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) of sustainable air travel fuel, of which it is now to offer in between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen previously, Neste said.<br> |
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<br>"Renewable items' list prices have been negatively affected by a significant decline in (the) diesel cost during the third quarter," Neste stated in a statement.<br> |
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<br>"At the exact same time, waste and residue feedstock costs have actually not decreased and eco-friendly product market rate premiums have actually stayed weak," the company included.<br> |
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<br>Industry [executives](https://www.crunchbase.com/organization/mission-newenergy) and analysts have said quickly expanding Chinese [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) manufacturers are looking for brand-new outlets in Asia for their exports, while Shell and BP have revealed they are stopping briefly growth strategies in Europe.<br> |
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<br>While the cut in Neste's assistance on sales volumes of sustainable aviation fuel came as a surprise, the negative effect on [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) margins from a lower diesel rate was to be anticipated, [Inderes expert](https://www.pinterest.com.au/missionnewenergy/) [Petri Gostowski](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) said.<br> |
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<br>Neste's share cost had actually [reversed](https://www.pinterest.com.au/missionnewenergy/) 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 and Boleslaw Lasocki |
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