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<br>[Company](https://www.zoominfo.com/c/mission-newenergy/346542889) makes third cut to renewables company outlook this year<br> |
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<br>[Reduces](https://www.zoominfo.com/c/mission-newenergy/346542889) both margin and volume outlook<br> |
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<br>Weaker diesel market hits [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) costs<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://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) company for the 3rd time this year due to falling prices and also lowered its anticipated sales volumes, sending out the company's share cost down 10%.<br> |
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<br>[Neste stated](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) a drop in the cost of regular diesel had impacted what it can charge for the [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) it makes in Europe and Singapore, while [input expenses](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) for waste and residue feedstock remained high.<br> |
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<br>A rush by U.S. fuel makers to [recalibrate](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) their plants to [produce renewable](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) diesel has actually developed a [supply excess](https://pitchbook.com/profiles/company/51278-86) of [low-emissions](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) biofuels, [hammering](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) profit margins for refiners and threatening to hinder the .<br> |
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<br>Neste in a declaration slashed the anticipated typical equivalent sales margin of its [renewables](https://www.businessnews.com.au/Company/Mission-NewEnergy) system to in between $360-$480 per tonne of [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price), 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.bloomberg.com/profile/company/MNELF:US) sales volumes in 2024 to be about 3.9 million tonnes instead 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 anticipated to sell between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen previously, Neste stated.<br> |
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<br>"Renewable items' list prices have actually been adversely affected by a considerable reduction in (the) diesel rate throughout the third quarter," Neste stated in a statement.<br> |
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<br>"At the same time, waste and residue feedstock rates have not decreased and sustainable product market value premiums have stayed weak," the business added.<br> |
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<br>Industry executives and analysts have stated quickly expanding Chinese [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) manufacturers are seeking new outlets in Asia for their exports, while Shell and BP have announced they are [pausing growth](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) plans in Europe.<br> |
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<br>While the cut in Neste's guidance on sales [volumes](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) of sustainable air travel fuel came as a surprise, the unfavorable impact on [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) [margins](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) from a lower diesel price was to be expected, Inderes analyst Petri Gostowski stated.<br> |
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<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](https://forest500.org/rankings/companies/mission-newenergy-limited) by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
