qxvteddy251443/mission-agroenergy-ltd
1
0
Code Issues Wiki

Dalene Brim
2025-01-12 00:05:02 +01:00
commit 3137c68c03
1 changed files with 16 additions and 0 deletions
Download Patch File Download Diff File Expand all files Collapse all files

16
Refiner-Neste-Warns-of-Weaker-Biofuel-Outlook%2C-Shares-Drop.md Normal file

@@ -0,0 +1,16 @@
<br>[Company](https://pitchbook.com/profiles/company/51278-86) makes 3rd cut to renewables business outlook this year<br>
<br>Reduces both margin and volume outlook<br>
<br>Weaker diesel market hits [biofuel](https://stocktwits.com/symbol/MNEL) rates<br>
<br>(Adds analyst, background, information in paragraphs 2-3, 9-11)<br>
<br>By [Elviira Luoma](https://www.google.com/search?kgmid=/m/0cqd_rb) and Essi Lehto<br>
<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 third time this year due to falling rates and likewise reduced its expected sales volumes, sending out the business's share price down 10%.<br>
<br>Neste said a drop in the price of had actually impacted 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 remained high.<br>
<br>A rush by U.S. [fuel makers](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) to recalibrate their plants to [produce renewable](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) diesel has created a supply glut of low-emissions biofuels, hammering revenue margins for refiners and [threatening](https://www.bloomberg.com/profile/company/MNELF:US) to hamper the [nascent market](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048).<br>
<br>Neste in a declaration slashed the [anticipated](https://pitchbook.com/profiles/company/51278-86) average comparable sales margin of its [renewables](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) unit to in between $360-$480 per tonne of biofuel, down from $480-$580 per tonne seen in July and well listed below the $600-$800 seen in February.<br>
<br>The [company](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) now likewise expects renewables-based sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had predicted considering that the start of the year, it included.<br>
<br>A part of the volume cut [originated](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) from the production of sustainable air travel fuel, of which it is now anticipated to sell between 350,000-550,000 tonnes this year, below between 500,000 and 700,000 tonnes seen formerly, Neste said.<br>
<br>"Renewable items' list prices have been adversely affected by a considerable reduction in (the) diesel cost throughout the 3rd quarter," Neste stated in a declaration.<br>
<br>"At the exact same time, waste and residue feedstock costs have not reduced and renewable item market value premiums have actually remained weak," the business added.<br>
<br>Industry executives and [analysts](https://www.bloomberg.com/profile/company/MNELF:US) have actually said quickly broadening Chinese [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) producers are looking for brand-new outlets in Asia for their exports, while Shell and BP have actually announced they are stopping briefly [growth strategies](https://pitchbook.com/profiles/company/51278-86) in Europe.<br>
<br>While the cut in Neste's assistance on sales volumes of [sustainable air](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) travel fuel came as a surprise, the negative influence 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](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) Petri Gostowski said.<br>
<br>Neste's share price had actually reversed some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://www.google.com/search?kgmid=/m/0cqd_rb) Luoma, Essi Lehto and [Boleslaw](https://forest500.org/rankings/companies/mission-newenergy-limited) Lasocki