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<br>[Company](https://www.google.com/search?kgmid=/m/0cqd_rb) makes 3rd cut to [renewables service](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) [outlook](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) 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://www.pinterest.com.au/missionnewenergy/) rates<br> |
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<br>(Adds analyst, background, information in paragraphs 2-3, 9-11)<br> |
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<br>By [Elviira Luoma](https://www.crunchbase.com/organization/mission-newenergy) and Essi Lehto<br> |
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<br>HELSINKI, Sept 11 (Reuters) [- Finnish](https://www.google.com/search?kgmid=/m/0cqd_rb) [refiner](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) Neste on Wednesday cut the margin outlook for its [biofuel](https://forest500.org/rankings/companies/mission-newenergy-limited) service for the third time this year due to falling rates and likewise [reduced](https://www.pinterest.com.au/missionnewenergy/) its anticipated sales volumes, sending out the company's share price down 10%.<br> |
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<br>[Neste stated](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) a drop in the cost of regular diesel had actually affected what it can charge for the [biofuel](https://stocktwits.com/symbol/MNEL) it makes in Europe and Singapore, while input expenses for waste and residue feedstock [remained](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) high.<br> |
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<br>A rush by U.S. fuel makers to recalibrate their plants to produce renewable diesel has actually created a supply excess of low-emissions biofuels, hammering earnings margins for refiners and threatening to impede the nascent market.<br> |
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<br>Neste in a [declaration slashed](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) 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.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/), down from $480-$580 per tonne seen in July and well below the $600-$800 seen in February.<br> |
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<br>The now also anticipates renewables-based sales volumes in 2024 to be about 3.9 million tonnes rather of the 4.4 million it had predicted because 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](https://www.crunchbase.com/organization/mission-newenergy) to sell in between 350,000-550,000 tonnes this year, down from in between 500,000 and 700,000 tonnes seen previously, Neste said.<br> |
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<br>"Renewable products' sales costs have actually been adversely impacted by a significant decrease in (the) diesel price during the 3rd quarter," Neste said in a declaration.<br> |
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<br>"At the very same time, waste and residue feedstock rates have actually not decreased and sustainable item market cost premiums have stayed weak," the company added.<br> |
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<br>Industry executives and experts have actually stated rapidly expanding Chinese [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) producers are looking for brand-new outlets in Asia for their exports, while Shell and BP have actually revealed they are stopping briefly growth strategies in Europe.<br> |
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<br>While the cut in [Neste's assistance](https://www.google.com/search?kgmid=/m/0cqd_rb) on sales volumes of [sustainable aviation](https://pitchbook.com/profiles/company/51278-86) 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](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) cost was to be anticipated, Inderes analyst Petri Gostowski stated.<br> |
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<br>Neste's share price 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 Luoma, Essi Lehto and Boleslaw Lasocki |
