Solazyme net loss widens to USD 22.5m in Q3 2012

Nov 15, 2012 - US algae oils company Solazyme Inc (NASDAQ:SZYM) on Wednesday reported a net loss of USD 22.5 million (EUR 17.7m) for the third quarter of 2012, compared with a USD-14.1-million loss a year earlier.

Non-GAAP net loss widened to USD 19.4 million from USD 11.5 million, the company, which in June commissioned a demonstration/commercial-scale algal oil plant in Peoria, Illinois, said. Revenues declined to USD 8.6 million from USD 8.9 million as revenues from research and development programmes fell to USD 4.8 million from USD 7.1 million and product revenues rose to USD 3.8 million from USD 1.9 million.

In the first nine months of the year, net loss expanded to USD 58.5 million from USD 38.4 million, while revenues increased to USD 35.7 million from USD 24.1 million.

Separately, Solazyme announced two deals on Wednesday. It said it had struck a partnership with US agricultural group Archer-Daniels-Midland Co (NYSE:ADM) for the production of Solazyme's algal oils in ADM's plant in Clinton, Iowa. The renewable oil firm has also signed a joint venture expansion framework agreement with US agribusiness Bunge Ltd (NYSE:BG). The agreement envisions boosting the oil production capacity of the Solazyme Bunge Renewable Oils joint venture, which is currently building a facility adjacent to Bunge's Moema sugarcane mill in Brazil.

"We are actively supplying tailored oils from Peoria to customers, and positioning ourselves for our future commercial-scale operations when Moema, Clinton and other facilities come online," chief executive Jonathan Wolfson said.

(USD 1.0 = EUR 0.785)

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