STOCK EXCHANGE: Liquidity continues to slip in the down market

Neste now expects a comparable sales margin of USD 480-650 per ton for renewable products, instead of the previous USD 600-800.

The decline in the general index of the Helsinki Stock Exchange had stopped by the afternoon. It was quoted down 0.1 percent at 10,360 points.

Today, investors are focused on the US inflation figures for April, which will be announced at 15:30 Finnish time.

Oil refiner In this warned last night about his result. Investors were dismayed by the decline in guidance, as the result of the fourth part of the year was also disappointing. Neste was clearly the most traded share in the afternoon, with EUR 87 million traded. The course had fallen by 12.3 percent to 19.46 euros.

According to Neste, the sales price outlook for renewables has been affected by the drop in the market price of diesel and the continued decline in the prices of biotics and biofuel proofs in the United States during the second quarter, while the prices of waste and residual raw materials have remained stable.

The company now expects a comparable sales margin of $480-650 per ton for renewable products, instead of the previous $600-800.

The analysts’ consensus forecast compiled by the Vara Research service had expected the sales margin in Neste’s renewable products to be $643 per ton this year. The range of forecasts was 600-723 dollars per ton. Now there is clear downward pressure in the forecasts.

Inderes analyst Petri Gostowski considered it possible in the morning review that there are also internal problems behind the bill.

“Recently taking into account the repetition of guidance made in connection with the Q1 result, the outlook for the end of the year has weakened quite strongly in a short time based on the updated guidance. This raises concerns about the realism of the previous guidance and its underlying assumptions. In addition, we take into account the recent management changes in the company, when in addition to the recent change of CEO, there have also been other changes in the management of Renewable Products. Several simultaneous changes may indicate other internal challenges as well, although we do not have more detailed information about this”, Inderes analyst Petri Gostowski wrote in his comment.

In the morning Citi reduced Neste’s target price from EUR 45.00 to EUR 39.00, Nordea From 44.00 euros to 38.00 euros and JP Morgan lowered the target price to EUR 20.00 and the recommendation to reduce.

Forestry company Stora Enso in turn raised its profit guidance. The order backlog and volumes for consumer packaging board have increased, and the pricing prospects for corrugated surface board and consumer packaging board have improved, the company said.

Stora Enso expects full-year 2024 adjusted operating profit is expected to be significantly higher (50 percent or more) than 2023 adjusted operating profit, which was EUR 342 million.

A few result announcements were also heard in the morning.

A brand company Marimekkon the beginning of the year exceeded analysts’ and the company’s own expectations told at the beginning of the year. The instructions remained unchanged. Marimekko’s sales were a positive surprise in Finland. In the Asia-Pacific region, growth was as much as 22 percent. Inderes analyst Rauli Juva saw that a large part of the positive surprise can be mainly due to the timing of the result in different quarters.

Toivo Group the result collapsed more than expected, but the guidance remained unchanged. The company still has new beginnings, but the CEO Markus Myllymäki already sees light at the end of the tunnel and expects the housing construction market in Finland to pick up properly in the spring of 2025. Toivo aims to start investments before the rest of the market. The company’s occupancy rate weakened with the rent increases in the fall, and the lending rate rose to 63 percent. However, the company has sold a real estate complex for 20 million euros during the second quarter.

Orthexin profitability improved when the price level of raw materials had a positive effect on the result. The result was close to Inderes’ predictions.

By Editor

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