Solazyme Falls on Brazil Factory Delay: San Francisco Mover
Solazyme Inc. (SZYM), a U.S. producer of renewable oil from algae, declined the most in more than two years after saying commercial production at its Moema plant in Brazil will begin later than planned and it lowered its sales forecast.
Solazyme fell 15 percent to $8.77 at the close in New York, the most since August 2011.
“We’ve made some modest changes to the production timeline recently that will push production of our first oils for commercial sales into the first quarter,” Chief Executive Officer Jonathan Wolfson said in a conference call with analysts yesterday. The plant is now more than 90 percent complete.
The company, based in South San Francisco, California, expects revenue this year to increase about 25 percent to $40 million to $42 million, down from an earlier forecast of 35 percent. Sales in the third quarter rose 24 percent to $10.6 million from a year earlier, according to an earnings statement yesterday after the close of regular trading in New York.
Solazyme said in August that the Moema plant was 80 percent complete and would begin initial commercial-scale operations this year.
The company’s net loss widened in the third quarter to $30.7 million, or 47 cents a share, from $22.5 million, or 37 cents, a year earlier, according to the statement. Excluding stock-based compensation and non-cash charges, the loss was 22.3 million, or 34 cents, one cent more than the average of eight estimates compiled by Bloomberg.
The company makes oils from sugar-consuming algae that are processed into renewable fuel and specialty chemicals.
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