Biofuel maker Neste falls as it cuts guidance again
Neste’s shares fell over 5% after the company cut its 2024 renewables margin guidance for the third time, now expecting $360-480 per ton, down from earlier forecasts. The firm also reduced its sales volume outlook for sustainable aviation fuel. Analyst Petri Gostowski linked the margin drop to weak diesel prices. Neste’s shares are down 48% year-to-date.
Shares in Neste NESTE.HE fall more than 5% after the Finnish oil refiner and biofuel maker posted a third cut to its renewables margin guidance for 2024
Neste expects the sales margin in the Renewable Products business to be $360-480/ton for the year, against $480-580/ton seen in July and $480-650/ton expected in May
It also cuts its guidance on sales volume for sustainable aviation fuel (SAF), which Inderes analyst Petri Gostowski says is “somewhat surprising”
“This should be one driver that has an impact on the margin guidance,” Gostowski says
“However, we have witnessed the weakness in diesel prices and the link to renewables pricing is known and the pressure from this does not come as a surprise,” he adds
Neste shares, down 48% year-to-date, are among the worst performers on Europe’s benchmark STOXX 600 index .
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Source Link : https://www.xm.com/research/markets/allNews/reuters/biofuel-maker-neste-falls-as-it-cuts-guidance-again-53923047
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