Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Amyris Surges on Plans to Resume Production, Profit Forecast

Don't Miss Out —
Follow us on:

Feb. 26 (Bloomberg) -- Amyris Inc., the biotechnology company part-owned by Total SA, surged the most in 13 months after announcing plans to resume production at its plant in Brazil and forecasting profitability next year.

Amyris gained 26 percent to $4.55 at the close in New York, the most since Dec. 31, 2012.

The company, based in Emeryville, California, expects to become cash-flow positive from operations this year and to “become profitable” in 2015, Chief Executive Officer John Melo said yesterday on a conference call with analysts.

The company said its Brotas, Brazil, facility will resume production of farnesene when the sugarcane harvest begins in March after closing for annual maintenance. Amyris also began making fragrance oils in volume in the fourth quarter, a high-margin product used in consumer goods including detergent and perfume.

“Going forward, you should not think of Brotas as a farnesene-only plant but a true biorefinery,” Melo said. “We believe we have put to rest any lingering doubts about our ability to manufacture renewable products.”

Amyris uses genetically modified microorganisms to convert plant-sugars into fragrance oils and farnesene, a hydrocarbon that can be processed into fuels or specialty chemicals.

The Brotas facility “is reportedly running at metrics similar to the lab,” and production costs last year fell by about two-thirds, Rob Stone, an analyst at Cowen & Co., wrote today in a note to investors. He upgraded the company’s shares to the equivalent of hold, raising his 12-month price target to $3.50 from $3.

Total, France’s largest oil producer, owns about 18 percent of the company, according to data compiled by Bloomberg.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.