Ramp-Up Delay Sends Solazyme Stock Into Free-Fall

Jim Lane Revenue and customer numbers are up at Solazyme (SZYM), 60% YOY growth from Q3 2013 to Q3 2014. But a slowdown in the rollout at Moema capacity leads to a spectacular 58% one-day drop in the stock price. What happened? Solazyme has been on a relatively steady downward trajectory for the past few quarters, dropping from the $11-$13 range and down into the $6-$8 range. And then plunged a stunning 58 percent to $3.14 yesterday – amidst downgrades by Cowen & Company, Pacific Crest and Baird generally to Market Perform or Neutral, and remains...

The Hocky-Stick Growth of Biobased Intermediates

Super-cali-thali-terpa-butyl-peta what? Jim Lane The new trend in biofuels is not a biofuel at all – it’s an (usually unpronounceable) intermediate that can be refined into an array of fuels, chemicals, flavors, fragrances, and construction or packaging materials. Ptera-buta-thalic-what? We can hardly pronounce them, but we sure need to know about them. Amyris (AMRS), KiOR (KIOR), Renmatix, Virdia, Blue Sugars, Proterro, Sucre Source, Sweetwater Energy, Genomatica – hot companies all, what do they have in common? Instead of making a finished end-product, they make an intermediate which is then upgraded to a finished product, typically...

Lower Revenues at Solazyme, But Also Lower Losses and New Customers

Jim Lane In California, Solazyme (SZYM) reported Q2 revenues of $11.7M compared with $15.9M in Q22014. GAAP net loss was $37.2 million for Q2 2015, compared to net loss of $42.9M in the prior year period. The company said that “year over year decline in revenues was due to expected decreases in funded program revenue as well as in product revenue due to the timing of certain Algenist sales activities and slower than anticipated adoption rates for Encapso.” The market responded to the results by slashing the stock price 20 percent in Friday trading. Analyst reaction was more positive,...

Amyris Aims For Huge Second Half

Jim Lane The Pharaohs of Farnesene continue to pick up momentum. In California, Amyris (AMRS) reported a net loss of $35.5M for the second quarter of 2014 on sales of $9.3M, with a 5.4 percent increase in sales over Q2 2013. Renewable product sales were $4.4M for the quarter, while “Recognized grants and collaborations revenues” reached $4.9M. In announcing results, the company highlighted: • End of quarter cash, cash equivalents and short-term investments balance of $90.2 million. • Lowest farnesene production costs to date and successful start of fragrance molecule production. • Addition of Braskem as a...

Two Thumbs Up for Solazyme: AkzoNobel deal, new technology for structured oils

Jim Lane The sector’s perennial hottest company strikes again with “potentially disruptive” new technology to change the positioning and performance of triglyceride oils. In California, Solazyme (SZYM) and AkzoNobel announced an agreement targeting the development of advanced tailored triglyceride oils and commercial sales for near-term product supply. The agreement focuses on supply for the chemical giant’s Surface Chemistry and Decorative Paints businesses. Commercial supply of multi-thousand ton quantities of highly sustainable algal oil is expected to originate from the Solazyme Bunge Renewable Oils Joint Venture oil manufacturing plant in Brazil. Sales of product are anticipated to commence...

Gevo: Are We There Yet?

by Debra Fiakas CFA The renewable chemicals and biofuel company Gevo, Inc. (GEVO:  Nasdaq) is scheduled to report fourth quarter 2013 financial results on March 25th.  Analysts have a couple of weeks to prepare questions for management during the earnings conference call.  Top on the list has to be got to be about Gevo’s recent agreement to license its novel isobutanol technology to Porta Hnos of Argentina.  Porta Hnos is a well established ethanol producer so if the license is consummated, it is expected that this partner has the ability to execute on plans to produce isobutanol for...

Solazyme: Now, Express Yourself in the oils you choose.

Jim Lane In an on-time arrival, Solazyme starts up at 500,000 liter scale in Clinton, Iowa.  In California, Solazyme (SZYM) announced that commercial operations have commenced at both Archer Daniels Midland Company’s (ADM) Clinton, Iowa facility, and the downstream companion facility operated by American Natural Products in Galva, Iowa. Highlighting the flexibility of Solazyme’s technology platform, Solazyme, ADM and ANP have successfully manufactured three distinct and unique tailored oil products at the facilities, and products are currently being sold and distributed in both the U.S. and Brazil. Volumes shipped to Brazil are being utilized for...

Solazyme Launches Biodegradable Encapsulated Lubricant For Drilling Market

Jim Lane Enters oil & gas drilling market with world’s first encapsulated lubricant. Solazyme: “Targeted delivery technology provides improved performance and sustainability.” In California, Solazyme (SZYM) announced its entry into the oil and gas drilling fluids additive market. Building upon its proprietary platform of high performance, sustainable Tailored oils, Solazyme has introduced Encapso, the world’s first encapsulated biodegradable lubricant for drilling fluids designed to deliver high-grade lubricant precisely at the point of friction where and when needed most. At the same time, the company announced its intent to offer $100M in aggregate principal notes due in 2019 and...