REC's first quarter 2013 results
Sandvika, April 24, 2013: Renewable Energy Corporation ASA (REC) reported first quarter 2013 revenues of NOK 1,278 million and EBITDA of NOK 46 million. EBIT was negative NOK 159 million. REC's cash position improved by NOK 0.1 billion to NOK 2.0 billion.
REC experienced improved demand for solar panels in the first quarter 2013 compared to the second half of 2012. The slowdown observed in the largest solar markets in Europe is being offset by growth in other markets, in particular in Asia. Despite the recent price stabilization, the global production capacity is still excessive throughout the solar value chain, and significant demand growth or supply reduction is required to improve pricing.
Sales and production volumes were reduced in the first quarter after temporary capacity shut downs in both Silicon and Solar. REC's selling prices for solar panels were down four percent from the previous quarter while average blended polysilicon prices declined nine percent, mainly due to reduced prices and sales volume of electronic grade polysilicon. REC managed to reduce its solar panel cost further in the quarter, while FBR costs were negatively affected by high maintenance costs and the temporary shutdown of the Silicon I Siemens reactors.
REC's first quarter revenues were down 24 percent from the previous quarter, while the NOK 46 million EBITDA was an improvement from negative NOK 37 million in the previous quarter. The fourth quarter 2012 revenues and EBITDA were impacted by positive items of NOK 80 million in REC Silicon, while in the first quarter 2013 other income of NOK 115 million from termination and settlement of parts of a silane gas contract was recognized. The underlying EBITDA improvement from the previous quarter in the operations of REC Solar was partially offset by weaker results in REC Silicon.
Loss after tax was NOK 209 million, compared to a loss of NOK 2,170 million in the previous quarter. Basic EPS from total operations was negative NOK 0.10 in the first quarter 2013, compared to negative NOK 1.03 in the previous quarter.
"The market conditions continue to be demanding for the entire solar industry, although the prices have stabilized recently. REC continues to focus on improving our operations and on technology development in order to cut costs further, while reinforcing our market position globally. In the first quarter, our Solar organization has demonstrated its strength and adaptability by shifting sales away from stagnating European markets to high growth solar markets in Asia," says Ole Enger, CEO & President of REC.
For more information, please see the attached first quarter 2013 report and presentation. A spreadsheet with detailed financial information can be found on the investor section of www.recgroup.com.
Morning program: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 Høyres Hus, Stortingsgaten 20, 0161 Oslo (www.hoyreshus.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: 4539971
Norway Toll Free: 800 56 054
UK Toll Free: 0800 279 4841
USA Toll Free: 1877 249 9037
International Toll: +44 (0)20 3450 9987
Afternoon program:
REC will further host an analyst conference call with possibilities for questions and answers later the same day at 15:00 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 further information, please contact:Mikkel Tørud,
SVP Investor Relations & Business Development, REC
Telephone: +47 976 99 144
Email: mikkel.torud@recgroup.com
About REC
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 2,200 employees worldwide generated revenues of more than NOK 7 billion in 2012, approximately EUR 1 billion or USD 1.3 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
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