BioAmber reports record quarterly revenue
BioAmber Inc.
August 15, 2017
BY Erin Voegele
BioAmber Inc. recently released second quarter financial results, announcing quarterly revenue of $4.1 million. The company also discussed plans to develop a second biorefinery in North America.
"We are pleased to report our second quarter 2017 results generated BioAmber's largest quarterly revenue ever. Year to date we have experienced the greatest acceleration in new customers and new applications since our Sarnia facility was commissioned. Investments in our customer base are resulting in increased sales. Our pipeline is robust and we believe provides us with a solid foundation for 2018," said Mike Hartmann, president of BioAmber Sarnia and head of global sales.
BioAmber also announced it has entered a definitive agreement to purchase Mitsui & Co. Ltd.’s entire minority equity position in the Sarnia, Ontario, manufacturing joint venture. Once the transaction closes, BioAmber will own 100 percent of the Sarnia plant. Mitsui will continue to distribute BioAmber’s biobased succinic acid in Asia and other markets.
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During an investor call, Fabrice Orecchioni, president and chief operations officer of BioAmber, discussed the record quarterly sales of biosuccinic acid, which reached $4.1 million. He said the quarterly sales increased 64 percent when compared to the second quarter of last year, and 94 percent when compared to the first quarter of this year.
Orecchioni also indicated the company had a record nine new customers purchase biobased succinic acid during the quarter, with 16 new customers added year-to-date.
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According to Orecchioni, the company is currently focused on ramping up its sales. He also noted minor improvements were made to the Sarnia plant during the quarter in an effort to continuously strengthen the consistency and safety of plant operations.
Regarding work to develop a second production plant in North America, he said BioAmber continues to have discussions with both the U.S. Department of Energy and a working group in Canada. While ongoing discussions with the DOE remain constructive, he said, policy uncertainty in regard to the loan program has delayed the process. On the Canadian side, he said progress has been slower than expected, with the company continuing to discuss conditions that must be met in order to gain support for the project.
BioAmber reported a net loss attributable to BioAmber shareholders of $7.1 million, or 20 cents per share, for the quarter, compared to a net income of $4.8 million, or 17 cents per share, during the same period of last year. The adjusted net loss attributable to BioAmber shareholders was $7.3 million, or 20 cents per share, compared to an adjusted net loss attributable to BioAmber shareholders of $7.1 million, or 25 cents per share, during the second quarter of 2016.
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