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<br>[Company](https://www.bloomberg.com/profile/company/MNELF:US) makes third cut to [renewables organization](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) outlook this year<br> |
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<br>Reduces both margin and volume outlook<br> |
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<br>Weaker diesel market strikes [biofuel](https://stocktwits.com/symbol/MNEL) prices<br> |
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<br>(Adds expert, background, information in [paragraphs](https://forest500.org/rankings/companies/mission-newenergy-limited) 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](https://www.bloomberg.com/profile/company/MNELF:US) Neste on Wednesday cut the margin outlook for its [biofuel](https://stocktwits.com/symbol/MNEL) business for the 3rd time this year due to falling rates and likewise [decreased](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) its anticipated sales volumes, sending out the [company's](https://stocktwits.com/symbol/MNEL) share price down 10%.<br> |
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<br>Neste said a drop in the rate of routine diesel had affected what it can charge for the [biofuel](https://www.google.com/search?kgmid=/m/0cqd_rb) it makes in Europe and Singapore, while input costs for waste and residue feedstock stayed high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to produce sustainable diesel has actually created a supply glut of low-emissions biofuels, hammering profit margins for refiners and threatening to hamper the nascent market.<br> |
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<br>Neste in a declaration slashed the anticipated typical similar sales margin of its [renewables unit](https://www.businessnews.com.au/Company/Mission-NewEnergy) to between $360-$480 per tonne of [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile), below $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
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<br>The business 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 anticipated since the start of the year, it included.<br> |
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<br>A part of the came from the production of sustainable air travel fuel, of which it is now [anticipated](https://www.crunchbase.com/organization/mission-newenergy) to sell in between 350,000-550,000 tonnes this year, down from between 500,000 and 700,000 tonnes seen formerly, Neste said.<br> |
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<br>"Renewable products' list prices have been negatively affected by a considerable decline in (the) diesel rate throughout the 3rd quarter," Neste said in a [declaration](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/).<br> |
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<br>"At the same time, waste and residue feedstock rates have actually not reduced and renewable product market price premiums have stayed weak," the business added.<br> |
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<br>[Industry executives](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) and [analysts](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) have actually stated quickly expanding Chinese [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) manufacturers are seeking new [outlets](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) in Asia for their exports, while Shell and BP have [revealed](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) they are [pausing growth](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) 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.businessnews.com.au/Company/Mission-NewEnergy) margins from a lower diesel price was to be anticipated, Inderes analyst Petri Gostowski said.<br> |
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<br>Neste's share rate had actually reversed some losses by 1037 GMT but remained down 5.8% on the day and 48% lower year-to-date. (Reporting by [Elviira](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) Luoma, Essi Lehto and Boleslaw Lasocki |
