Neste, a leading fuel company, announced a profit warning on Tuesday evening due to a lower estimate of the comparable sales margin of renewable products. The company now expects the average sales margin for renewable products to be between $480 and $650 per ton this year, down from the previous estimate of $600-800 dollars per ton. Despite this change, other aspects of the company’s instructions for the year remain unchanged.
The decline in the market price of diesel and ongoing decline in the prices of biotics and biofuel in the United States have influenced Neste’s expectations regarding the sales prices of renewable products. Additionally, stable prices of waste and residual raw materials have been observed. The head of Neste’s renewable products business, Katja Wodjereck, recently left her position at Neste, with Carl Nyberg taking over temporarily. Neste’s renewable products business is a critical area for the company’s future growth.
Neste’s current CEO, Matti Lehmus, is stepping aside from his duties with Heikki Malinen set to take over as the new CEO from November at the latest. Neste’s share price has declined significantly in the past year due to various factors impacting market prices of their products.
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