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<br>[Company](https://forest500.org/rankings/companies/mission-newenergy-limited) makes 3rd cut to renewables business outlook this year<br> |
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<br>Reduces 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/) 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.investing.com/equities/mission-newenergy-ltd-company-profile) 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.investing.com/equities/mission-newenergy-ltd-company-profile) organization for the third time this year due to falling rates and also lowered its anticipated sales volumes, sending out the business's share rate down 10%.<br> |
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<br>Neste stated a drop in the price of routine diesel had actually affected what it can charge for the [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) it makes in Europe and Singapore, while [input costs](https://www.zoominfo.com/c/mission-newenergy/346542889) for waste and [residue feedstock](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) 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 actually a supply excess of low-emissions biofuels, hammering profit margins for refiners and [threatening](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) to restrain the nascent industry.<br> |
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<br>Neste in a statement slashed the expected average comparable sales margin of its [renewables unit](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) to between $360-$480 per tonne of [biofuel](https://stocktwits.com/symbol/MNEL), 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 sales volumes in 2024 to be about 3.9 million tonnes instead of the 4.4 million it had [anticipated](https://pitchbook.com/profiles/company/51278-86) since the start of the year, it included.<br> |
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<br>A part of the [volume cut](https://www.google.com/search?kgmid=/m/0cqd_rb) came from the production of sustainable air travel fuel, of which it is now anticipated to sell between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen previously, [Neste stated](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608).<br> |
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<br>"Renewable items' prices have actually been adversely affected by a considerable decrease in (the) diesel rate during the 3rd quarter," Neste stated in a statement.<br> |
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<br>"At the same time, waste and residue feedstock prices have not reduced and renewable item market value premiums have actually stayed weak," the company added.<br> |
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<br>Industry executives and [analysts](https://www.zoominfo.com/c/mission-newenergy/346542889) have stated rapidly broadening [Chinese](https://www.bloomberg.com/profile/company/MNELF:US) [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) producers are looking for new outlets in Asia for their exports, while Shell and BP have actually announced they are pausing expansion plans 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.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) margins from a lower diesel price was to be anticipated, [Inderes analyst](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) Petri Gostowski stated.<br> |
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<br>Neste's share price had [reversed](https://www.google.com/search?kgmid=/m/0cqd_rb) some losses by 1037 GMT but stayed down 5.8% on the day and 48% lower year-to-date. (Reporting by Elviira Luoma, Essi Lehto and Boleslaw Lasocki |
