Neste shares fall 10% after Neste warns about weaker future renewables prospects

Neste, a Finnish refiner, cut its outlook for renewables for the third consecutive time in the past year on Wednesday due to lower sales volumes and falling prices. The company's shares fell 10%.

Neste has lowered the expected margins of its renewables division to $360-$480 a tonne. This is down from $480-580 per tonne in July, and far below the $600-$800 per tonne in February.

It added that the company expects the volume of renewables to reach 3.9 million tonnes this year instead of the 4.4 it predicted at the beginning of the year.

Neste stated that a part of the volume reduction came from the production and sale of sustainable aviation fuel. This year it is expected to sell 350,000-550,000 metric tons, down from 500,000-700,000 metric tonnes previously.

Neste stated that the drop in diesel prices during the third quarter had a negative impact on sales of renewable products.

The company said that "at the same time, the prices of waste and residue feedstocks have not decreased" and the renewable product market premiums are still weak. (Reporting and editing by Terje Solsvik, Essi Lehto and Elviira Louma)

(source: Reuters)