Amyris reports Q3 loss of $19.6M, gains key EPA OK on renewable diesel

November 8, 2010 |

In California, Amyris posted a 3Q10 loss of $19.6 million on revenue of $24.2 million, of which 91 percent represented third-party marketing sales by Amyris Fuels.

“Amyris is obviously not an earnings story for the time being, so much more relevant than current financials is the farnesene commercialization roadmap, with two distinct “tracks,” wrote Raymond James analyst Pavel Molchanov. “The first one is contract manufacturing. Adding to its existing contract manufacturing agreement with Biomin, Amyris announced a second one with Tate & Lyle, a leading global agribusiness.

“Farnesene production is set to begin in 2Q11, with full-year 2011 volumes expected to total 1.6 to 2.4 million gallons – average selling prices should be…in the range of $23 to $28/gal. The second track, of course, is in-house production capacity…The first plant, a 50/50 joint venture with Usina São Martinho, begins construction next month using a portion of the recent IPO proceeds (total cash on hand was $271 million at quarter-end). Start-up is expected in 2Q12….We reiterate our Outperform rating.”

Meanwhile, the EPA has granted permission for Amyris’ renewable diesel to be blended at 35% with low sulfur diesel, up from a previous 20%, the highest awarded to date by the EPA for commercial sale of a motor vehicle renewable gasoline or diesel fuel. Amyris says independent lab tests have shown that its renewable diesel performs as well as or better than both petroleum diesel and biodiesel on critical ASTM International certification metrics.

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Category: Producer News

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