REC's third quarter 2012 results
Sandvika, October 24, 2012: Renewable Energy Corporation ASA (REC) reported third quarter 2012 revenues from continuing operations of NOK 1,510 million and negative EBITDA of NOK 184 million.
Very challenging market conditions led to quarterly sequential reduction in both selling prices and sales volumes. Third quarter polysilicon sales were about 4,800 MT, silane gas sales about 360 MT and modules sales about 170 MW. Average selling prices were down ten percent for polysilicon, four percent for silane gas and ten percent for modules compared to the previous quarter. These effects, as well as writedowns of NOK 254 million for inventory still in stock, gave an EBITDA of negative NOK 184 million in the third quarter, compared to positive NOK 267 million in the previous quarter.
EBIT from continuing operations was negative NOK 451 million in the third quarter, compared to negative NOK 3.7 billion in the previous quarter. The second quarter EBIT included impairment charges of NOK 3.6 billion.
Net debt was reduced by NOK 2.2 billion to NOK 1.9 billion at the end of the third quarter. Net debt including the convertible bond at par value amounted to NOK 2.4 billion. The debt reduction mainly reflects new equity of gross NOK 1.7 billion and a positive effect of the insolvency of REC Wafer Norway AS of NOK 0.4 billion. With the insolvency, REC recognized a net gain of NOK 0.8 billion as part of discontinued operations in the consolidated statement of income.
Loss after tax from continuing operations was NOK 452 million in the third quarter, compared to loss of NOK 3.7 billion in the previous quarter. Profit after tax from total operations was NOK 408 million, compared to loss of NOK 4.1 billion in the previous quarter. EPS for total operations was NOK 0.23 and NOK -3.02 for the same periods.
"Current solar market conditions are unsustainable with spot prices below cash cost for all market participants. Solar energy is a very attractive source of electricity in many areas of the world. With the right frameworks and regulations in place, I am convinced that we will see strong demand growth in the years to come. REC continues to aggressively reduce costs and improve our product quality, together with our partners we will weather the current industry turmoil and capture the opportunities that lie ahead", says Ole Enger CEO.
For more information, please see the attached third quarter 2012 report and presentation as well as a spreadsheet with detailed financial information.
On the release day, President and CEO Ole Enger of REC will give a presentation together with other members of the management team. The presentation will take place at 08:00 hrs Norwegian time/CET at the conference centre Oslo Konserthus, Munkedamsveien 14, 0250 Oslo (www.oslokonserthus.no).
The presentation, held in English, will be broadcasted live over the Internet, and can be accessed from: www.recgroup.com.
It will also be possible to listen to the presentation through a conference call. Please make sure to dial in 10 minutes prior to scheduled start time on one of the following numbers:
Confirmation code: 9314607
Norway Toll Free: 800 56 054
UK Toll Free: 0800 279 4841
USA Toll Free: 1877 249 9037
International Toll: +44 (0)20 7136 2055
REC will further host an analyst conference call with possibilities for questions and answers later the same day at 14:30 CET. Please make sure to dial in at least 5 minutes ahead of time to finalize your registration:
International dial in: +47 2318 4540, please state your name and company.
Immediately after the call, a replay of the conference call will be made available. To access, please dial +47 2318 4502 and use the following procedure:
- Type pincode 1524 followed by # (pound-sign)
- Continue by typing reference number 524 followed by # (pound-sign)
For more information, please contact;
VP & IRO, REC ASA
Telephone: +47 976 99 144
REC is a leading global provider of solar electricity solutions. With nearly two decades of expertise, we offer sustainable, high-performing products, services and investment opportunities for the solar and electronics industries. Together with our partners, we create value by providing solutions that better meet the world's growing electricity needs. Our 2,400 employees worldwide generated revenues of more than NOK 13 billion in 2011, approximately EUR 1.7 billion or USD 2.4 billion. To see more of what REC can offer, visit www.recgroup.com
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE