commit
914e8b890f
1 changed files with 16 additions and 0 deletions
@ -0,0 +1,16 @@ |
|||||
|
<br>[Company](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) makes third cut to renewables business outlook this year<br> |
||||
|
<br>[Reduces](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) both margin and volume outlook<br> |
||||
|
<br>Weaker diesel market strikes [biofuel](https://stocktwits.com/symbol/MNEL) prices<br> |
||||
|
<br>(Adds expert, background, information in paragraphs 2-3, 9-11)<br> |
||||
|
<br>By Elviira Luoma and Essi Lehto<br> |
||||
|
<br>HELSINKI, Sept 11 (Reuters) [refiner Neste](https://www.pinterest.com.au/missionnewenergy/) on Wednesday cut the margin outlook for its [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) company for the 3rd time this year due to falling prices and likewise reduced its expected sales volumes, sending out the [company's share](https://www.zoominfo.com/c/mission-newenergy/346542889) cost down 10%.<br> |
||||
|
<br>Neste said a drop in the price of routine diesel had actually impacted what it can charge for the [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) 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 to [recalibrate](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) their plants to produce renewable diesel has created a supply excess of low-emissions biofuels, hammering earnings margins for refiners and threatening to hamper the [nascent market](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).<br> |
||||
|
<br>Neste in a declaration slashed the anticipated typical [equivalent sales](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) margin of its [renewables unit](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to between $360-$480 per tonne of [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html), below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
||||
|
<br>The business now likewise anticipates renewables-based [sales volumes](https://pitchbook.com/profiles/company/51278-86) in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually forecasted considering that the start of the year, it added.<br> |
||||
|
<br>A part of the volume cut came from the production of sustainable air travel fuel, of which it is now [expected](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) to offer in between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen formerly, Neste said.<br> |
||||
|
<br>"Renewable items' sales rates have actually been adversely impacted by a significant decline in (the) diesel rate throughout the third quarter," Neste said in a statement.<br> |
||||
|
<br>"At the very same time, waste and residue feedstock prices have not decreased and renewable item market value premiums have stayed weak," the company added.<br> |
||||
|
<br>[Industry executives](https://www.bloomberg.com/profile/company/MNELF:US) and analysts have actually said quickly [broadening Chinese](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) biodiesel producers are seeking new [outlets](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) in Asia for their exports, while Shell and BP have actually revealed they are pausing expansion strategies in Europe.<br> |
||||
|
<br>While the cut in Neste's assistance on sales volumes of [sustainable air](https://www.google.com/search?kgmid=/m/0cqd_rb) 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 expert Petri Gostowski stated.<br> |
||||
|
<br>[Neste's share](https://www.zoominfo.com/c/mission-newenergy/346542889) price had reversed some losses by 1037 GMT but stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://forest500.org/rankings/companies/mission-newenergy-limited) Luoma, Essi Lehto and Boleslaw Lasocki |
||||
Loading…
Reference in new issue