Companies | Neste’s earnings warning ate up a tenth of the company’s market value in a day

Liquid the earnings warning on Wednesday morning sent the company’s stock into a sharp plunge.

By 12 o’clock, the share fell by more than nine percent. At the end of the trading day at 18:30, Neste’s share price was 9.55 percent lower than Tuesday’s closing price.

Neste’s plunge also affected the decline of the entire Helsinki stock exchange. The Helsinki Stock Exchange’s general index OMX Helsinki PI ended 1.1 percent below zero.

Liquid the stock has already depreciated by more than 50 percent this year. Even at the end of last year, Neste’s share cost more than 32 euros.

Neste lowered the forecast for its renewable products last time in May. At the time, the company justified this with the decrease in the prices of diesel, biotics and biofuel certificates.

Liquid on Wednesday lowered its forecast for this year for its renewable products.

According to the fuel company, the significant drop in the market price of diesel in the third quarter has negatively affected the expectations regarding the sales prices of renewable products.

“At the same time, the prices of waste and residual raw materials have not decreased, and the market price premiums for renewable products have remained weak,” Neste said in its press release.

Neste continues to maintain its prediction regarding oil products.

In addition Neste refined its forecasts for the total sales volume of renewable products and the sales volume of renewable aviation fuel.

“The total sales volume of renewable products is expected to increase from 2023 and reach approximately 3.9 million tons in 2024,” the company says.

Neste previously estimated that the total sales volume of renewable products would increase from last year and reach approximately 4.4 million tons this year.

Neste now estimates the sales volume of renewable aviation fuel to be 0.35–0.55 million tons. It previously expected sales of renewable jet fuel to be between 0.5 and 0.7 million tonnes.

Neste estimates the average comparable sales margin for renewable products for the entire year 2024 to be 360–480 dollars per ton. Previously, the company predicted that the sales margin would be 480–580 dollars per ton.