Renewable Energy

Solazyme Slumps Most on Record on Delays at Brazil Plant

Solazyme Inc. (SZYM), a producer of renewable oils from algae, declined the most on record after its third-quarter revenue fell short expectations

Bloomberg
07/11/2014 19:03
Visualizações: 1148 (0) (0) (0) (0)

Solazyme Inc. (SZYM), a producer of renewable oils from algae, declined the most on record after its third-quarter revenue fell short expectations and it said sales next year will miss estimates even more.

 

Solazyme tumbled 58 percent to $3.14 at the close in New York, the most since its May 2011 initial public offering and the lowest price on record.

 

Revenue in the third quarter was $17.6 million, South San Francisco, California-based Solazyme said in a statement after the close of trading yesterday. That was lower than the $19.6 million average of eight analysts’ estimates compiled by Bloomberg.

 

Production issues at the company’s plant in Moema, Brazil, led Solazyme to lower its revenue forecast for 2015 to about $75 million, well short of the $300 million estimate from Jeff Osborne, an analyst with Cowen & Co.

 

“The loss of Moema’s rapid volume-growth expectations” were among the “primary concerns for our more cautious view on the stock,” Osborne wrote in a note to investors today. He lowered his rating to the equivalent of hold with a 12-month price target of $7. Solazyme also was downgraded today by Robert W. Baird & Co. and yesterday by Pacific Crest Securities LLC.

 

Excluding some items, the company’s loss of 45 cents a share was three cents more than the average of nine estimates compiled by Bloomberg.

 

The company began commercial production of oil and lubricants at Moema in May, and said it expected to reach full capacity of 100,000 metric tons a year within 12 to 18 months.

 

“Management has noted that despite delays, it expects to fully bring Moema onto its balance sheet in 2016, albeit not producing at the previously intended annual capacity,” Osborne said. “We expect the Moema run rate to fall short of 20,000 metric tons a year by 2016.”

 

Most Read Today
see see
Petrobras
The Búzios and Atapu fields received nearly the entire U...
13/05/25
Petrobras
Petrobras informs about shareholder remuneration
13/05/25
Pre-Salt
Petrobras informs about new oil discovery in the Santos ...
09/05/25
OTC Houston 2025
ABEMI reinforces strategic presence at OTC 2025
09/05/25
OTC Houston 2025
Oil States stands out at OTC Houston 2025 with award-win...
09/05/25
Natural Gas
Petrobras and Portobello establish unprecedented partner...
09/05/25
OTC Houston 2025
Offshore Technology Conference 2025: Waves of Innovation...
09/05/25
OTC Houston 2025
At OTC Houston 2025, Firjan takes part in MoU signing be...
09/05/25
Santos Basin
Karoon completes acquisition of FPSO Cidade de Itajaí
08/05/25
OTC Houston 2025
Brazilian company gains recognition at OTC with pioneeri...
08/05/25
OTC Houston 2025
Technology from Brazilian company Vidya is being used in...
08/05/25
OTC Houston 2025
Tenenge and Enseada are present at OTC 2025 in Houston
08/05/25
Selic Rate
Selic Rate Hike to 14.75% Signals Risks to Industry and ...
08/05/25
OTC Houston 2025
A Sergipe delegation at the fair in the USA met with Pet...
07/05/25
RD&I
ouronova and Equinor develop robots to operate in FPSO tanks
07/05/25
OTC Houston 2025
Petrobras, IBP, Sinaval, and ApexBrasil promote new busi...
07/05/25
Offshore
Decommissioning of Fixed Platforms in Shallow Waters Att...
07/05/25
OTC Houston 2025
Vesper, a leader in industrial EX Fans and Exhausters, m...
07/05/25
Sergipe Oil & Gas 2025
SOG25 to Highlight Sergipe’s Oil and Gas Production Pote...
07/05/25
OTC Houston 2025
EPE destaca oportunidades de investimento no setor energ...
07/05/25
OTC Houston 2025
PPSA announces revision of the volume to be offered in t...
06/05/25
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.