Finnish energy giant Neste issued a profit warning on Wednesday, saying that it expects lower sales of its renewables-based fuels next year.
The partly state-owned firm says it is lowering its expectations for renewable products for 2024.
The company said on Wednesday that its sales price outlook has been affected by a considerable drop in the market price of diesel in the third quarter. At the same time, the prices of waste and residual raw materials it uses to produce its fuel have not decreased.
Neste downgraded its sales outlook for renewable products and said it will optimise its production capacity in line with the market situation.
The company offers its own renewable diesel based on vegetable oil, which it says "can be used as a drop-in replacement to fossil diesel to significantly reduce greenhouse gas emissions".
Share price slumps
Investors reacted negatively to the news. Just after the earnings warning, Neste's share price was down by 4.5 percent at 11 am, falling more steeply later.
By afternoon, Neste stock was the biggest loser of the day on the Helsinki Stock Exchange, with its share price slumping by 6.4 percent.
Neste is about 44 percent state-owned, with the Social Insurance Institution (Kela) and an array of Finnish pension funds also holding stakes in the firm.
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