REC receives NOK 170 million for terminating a ...
Sandvika, December 20, 2011: Reference is made to the third quarter report, where REC is expecting to continue to recognize income from termination of long term wafer contracts.
In the period 2006 - 2008, REC entered into a number of long term take-or pay wafer sales contracts and most of the contracts were supported by bank guarantees. REC has now accepted to terminate one of these contracts and will receive a cash compensation of approximately NOK 170 million in addition to certain deliveries of wafers going forward. Wafer deliveries under the existing contract will continue until the end of 2011.
Approximately NOK 160 million of the income from this cancellation is expected to be recognized in the fourth quarter 2011, and the cash amount will be received in the first quarter 2012.
For further information, please contact:
Mikkel Tørud, VP & IRO, phone: +47 976 99 144
About REC
REC is a leading vertically integrated player in the solar energy industry. Ranked among the world's largest producers of polysilicon and wafers for solar applications and a rapidly growing manufacturer of solar cells and modules, REC also engages in project development activities in selected PV segments. Founded in Norway in 1996, REC is an international solar company, employing more than 3,900 people worldwide with revenues close to NOK 14 billion in 2010. Please visit www.recgroup.com to learn more about REC.
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
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