Refiner Neste warns of weaker biofuel outlook, shares drop.
Neste mentioned a drop within the value of standard diesel had affected what it might cost for the biofuel it makes in Europe and Singapore, whereas enter prices for waste and residue feedstock remained excessive.
Neste in an announcement slashed the anticipated common comparable gross sales margin of its renewables unit to between $360-$480 per tonne of biofuel, down from $480-$580 per tonne seen in July and effectively beneath the $600-$800 seen in February.
The corporate now additionally expects renewables-based gross sales volumes in 2024 to be about 3.9 million tonnes as an alternative of the 4.4 million it had predicted because the begin of the yr, it added.
Part of the amount minimize got here from the manufacturing of sustainable aviation gasoline, of which it’s now anticipated to promote between 350,000-550,000 tonnes this yr, down from between 500,000 and 700,000 tonnes seen beforehand, Neste mentioned.
Neste mentioned in an announcement:
Renewable merchandise’ gross sales costs have been negatively affected by a considerable lower in (the) diesel value throughout the third quarter.
“On the similar time, waste and residue feedstock costs haven’t decreased and renewable product market value premiums have remained weak,” the corporate added.
Whereas the minimize in Neste’s steering on gross sales volumes of sustainable aviation gasoline got here as a shock, the unfavorable influence on biodiesel margins from a decrease diesel value was to be anticipated, Inderes analyst Petri Gostowski mentioned.
Neste’s share value had reversed some losses by 1037 GMT however remained down 5.8% on the day and 48% decrease year-to-date.
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Refiner Neste warns of weaker biofuel outlook, shares drop. supply
