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<br>Company makes 3rd 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://stocktwits.com/symbol/MNEL) 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 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.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) service for the third time this year due to and likewise reduced its anticipated sales volumes, sending out the business's share price down 10%.<br> |
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<br>Neste stated a drop in the price of routine diesel had actually [impacted](https://www.crunchbase.com/organization/mission-newenergy) what it can charge for the [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) it makes in Europe and Singapore, while input costs for waste and [residue feedstock](https://www.businessnews.com.au/Company/Mission-NewEnergy) stayed high.<br> |
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<br>A rush by U.S. [fuel makers](https://www.pinterest.com.au/missionnewenergy/) to recalibrate their plants to produce sustainable diesel has created a supply glut of low-emissions biofuels, hammering revenue margins for refiners and threatening to [restrain](https://www.businessnews.com.au/Company/Mission-NewEnergy) the [nascent industry](https://www.google.com/search?kgmid=/m/0cqd_rb).<br> |
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<br>Neste in a statement slashed the anticipated average equivalent sales margin of its renewables unit to in between $360-$480 per tonne of [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm), below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
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<br>The company now also anticipates renewables-based sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had actually [predicted](https://www.bloomberg.com/profile/company/MNELF:US) given that the start of the year, it added.<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](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to offer in between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen previously, [Neste stated](https://www.pinterest.com.au/missionnewenergy/).<br> |
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<br>"Renewable products' prices have been adversely affected by a considerable decline in (the) diesel price during the third quarter," Neste stated in a statement.<br> |
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<br>"At the very same time, waste and residue feedstock costs have not decreased and eco-friendly item market value premiums have actually stayed weak," the company included.<br> |
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<br>Industry executives and analysts have said rapidly broadening Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) manufacturers are seeking brand-new [outlets](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) in Asia for their exports, while Shell and BP have revealed they are stopping briefly expansion strategies in Europe.<br> |
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<br>While the cut in Neste's assistance on sales volumes of [sustainable air](https://www.zoominfo.com/c/mission-newenergy/346542889) [travel fuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) came as a surprise, the negative 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 analyst Petri Gostowski stated.<br> |
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<br>Neste's share price had [reversed](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) some losses by 1037 GMT however remained down 5.8% on the day and 48% lower year-to-date. ([Reporting](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) by Elviira Luoma, Essi Lehto and [Boleslaw](https://forest500.org/rankings/companies/mission-newenergy-limited) Lasocki |
